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Download sample bill of sale in PDF format.
Do I Really Need a Bill of Sale Form?
Need to create a bill of sale form? Do you know everything that needs to be included? A bill of sale is a crucial piece of documentation if you decide to sell a large item to a private party. In this article we will provide a brief definition of the bill of sale, including what types of items would usually require one, and show you in detail the types of information that should always be included on a bill of sale form.
What Exactly Is a Bill of Sale?
A bill of sale is a type of written documentation usually initiated by the seller for a given transaction. The bill of sale is often used for higher-priced items such as cars, boats and furniture and is typically offered only after the item has been paid for in full. (If you plan to allow the other party to make payments until the item is paid off, you may want to use a sales agreement until the item has been paid for in full).
The bill of sale acts as proof that an item has legally changed hands and that both parties involved have agreed to the terms of the sale. For purchases such as cars and boats, the bill of sale also releases the previous owner of any future liability with regard to that item.
Some of the items that may require a bill of sale include:
- Automobiles and Trucks
- Boats and other Watercraft
- Furniture
- Jewelry
- Equipment such as Computers or Stereos
- Tools and Farm Equipment
- Aircraft
- Large Fitness Equipment and Bicycles
- Animals
The Bill of Sale Form: What Should Be Included?
If you search the Internet, you’re bound to find any number of business sites offering a sample bill of sale form to their users. These samples act as a sort of template and allow you to customize the form to meet your individual needs. Some of the details of the transaction that would typically appear on a bill of sale form include:
• The Date. Oddly, many people view the date on a document as something optional, when the reality is that it’s the single most important entry. Without the date, neither party down the road will know exactly when the item changed hands, and thus released the seller from liability. This should be the first entry on the form.
• Seller’s Information. The full name and contact information of the seller needs to be recorded.
• Buyer’s Information. The buyer’s name and personal information should also be written out clearly.
• Item. Here is where you will list the type of item being sold, such as a car, boat, sofa or computer.
• Value of the Item. The approximate value of the item, as agreed upon by both parties at the time of the sale, should be dutifully recorded.
• Signatures. Both parties involved in the transaction will need to sign the bill of sale to make it legal.
Using a bill of sale form to record large transactions between private parties is really no different than the receipt you receive when you buy a large item from a store or dealer. These types of documents record the exact value of the item at the time of the sale, along with the date when the item changed hands.