Bill of Sale Information
A Bill of Sale is a document used to transfer ownership of goods from one person, the Seller, to another, the Buyer. A Bill of Sale can be used to transfer ownership of a variety of items-cars, RV, motorcycle, boats, equipment, personal property, animals, jewelry and any other items.
The Bill of Sale outlines the terms of the sale, including the purchase price and payment type used, describes the item being sold, the date of sale, the Buyer and Seller's information, and a signature line.
It is a good idea for the buyer and seller to each retain a copy of the Bill of Sale for their records. Also, whenever you are selling an item for more than $500, you should have something in writing as proof of the sale. A Bill of sale creates the proof of sale and acts as a "sales receipt."
It is important to note that a Bill of Sale acts like a sales receipt, it does not include any warranties, other than a limited warranty of release of liens, or have any contractual bearings. A Bill of Sale helps prevent confusion and future disputes by clearly stating the facts of the transfer of ownership.
Most of the time, a Bill of Sale will state the item that is being sold is "as-is." This means that the Seller is not making any warranties or promises as to the item and is being sold "as is," meaning in whatever condition it is in.
If you are selling or transferring ownership of a vehicle, your local DMV office will usually require a Bill of Sale with the vehicle title to be brought in together. The assignment of ownership section on the back of the title must be filled out and in certain states the assignment of ownership on the title must be notarized, so it is important to check with your local DMV office.
As a Seller you should only give the Buyer the Bill of Sale once you have received full payment of the agreed to purchase price.
A Bill of Sale may also be referred to as: Sales Receipt, proof of purchase, As-In Sale.
FAQS:
What name should I use?
You should use your full legal name. Do not use any nicknames. If the Seller or Buyer is a corporation, use the incorporated name of the company as opposed to a trade or business name (e.g., ABC Limited not Alphabet Sales).
What state should I use?
You should pick the location where the item you are selling is located, which is usually where the Seller is located. A Bill of Sale is normally governed by the current location of the item being sold, you may select the state where either the Purchaser or Seller normally resides as long as there are no overriding tax or environmental restrictions.
What is a Vehicle Identification Number or VIN?
A VIN is a unique, vehicle identification number that it is usually located on the driver's side windshield. In some model cars, it may be found in the door frame of the driver's side. Every vehicle has a specific VIN that is a combination of letters and numbers. The VIN is used for identification purposes of the car, and helps in tracking recalls, car registrations, car warranty and car thefts. Vehicles manufactured since 1980 have a VIN that is 17 characters long. No two vehicles in the world have the same VIN. VINs are used in the United States, Canada, New Zealand, Australia, Europe, and other countries.
What is an odometer reading and why do I need one?
First, an odometer is the display of numbers that indicates the number of miles a vehicle has traveled. An odometer reading is one of the key factors in determining the worth of a vehicle and it is usually also listed on the titles when a sales transaction is completed.
What is a Hull Identification Number?
The Hull Identification Number, or in short- the HIN, is a unique number assigned to sea vessels similar to VINs that are assigned to cars, which will uniquely identify each boat. The HIN is usually a 12- or 14-character serial number used to identify boats. All boats manufactured or imported after November 1, 1972 must bear a HIN, which is then used in the registration of the vessel.
The HIN is usually found on a metal or plastic plate, typically on the transom of the boat, usually starboard (right) side on the upper right corner. On vessels without transoms, the HIN is usually on the starboard (right) outboard side of the hull. On catamarans and pontoon boats with replaceable hulls, the HIN is usually on the aft crossbeam.
What details should I include if selling items- such as an animal, personal property, piece of jewelry, furnishings, appliances, equipment, etc.?
You should include as much of a description as possible, such as color, brand, number of carats for jewelry. If you are selling an animal include in the description details such as the breed, species, gender, age, weight, height, color, medical conditions, as well as a brief physical description. If the animal has any distinctive marks, include that as well. For horses and cattle, include the brand or other distinctive mark.
What if the boat, car, personal property, animal or equipment that I am transferring is a gift, what purchase price should I indicate?
If you wish to transfer an item as a gift, use a small amount such as $1.00 or $10.00 as the price.
What if the item that I am transferring has a lien or loan on it, can I transfer the lien or a loan to the buyer?
You can transfer some liens or loans to the Buyers, however some types of loans-like a bank loan is not typically transferable. If a loan or a lien is passed on to the Buyer, usually the purchase price is reduced by the amount of the lien or loan.
What if a feature on an item, car or boat that I am selling is not working?
You may include features you know don't work properly but you should create an additional clause in the Bill of Sale explaining the current working condition of the feature. A Buyer will assume any listed feature to be working unless it is described as non-functioning. If you list a feature but fail to state that it is non-functioning, you may face liability for that omission.
Does my Bill of Sale need to be notarized or do I need witnesses?
Most states do not require that the Bill of Sale be notarized or have any witnesses. However, it may be a good idea to have a witness by the signing of the Bill of Sale in case the parties ever end up suing one another regarding the sale. Having the Bill of Sale notarized adds another level of protection.
There are a handful of states that DO require the Bill of Sale be notarized, those states include: Louisiana, Maryland, Montana, Nebraska, New Hampshire and West Virginia. Make sure if you live in one of these states to notarize your Bill of Sale.
However, take note if you are taking title to a vehicle from another state than where you reside it is a good idea to have your Bill of Sale notarized. In fact, in such situations many state DMV offices require a notarized bill of sale.