Bill of Sale of Equipment Instructions
First Paragraph: Enter the date of the sale, enter it as the day, then the month and then the year. For example, 5th day of May, 2023.
Next enter the Buyer’s name and the address of the Buyer after the words “residing at.” Next, do the same for the Seller’s name and address. Make sure to use the Buyer’s and Seller’s full legal name. If the Buyer or Seller is a corporation, use the incorporated name of the company.
Section I –Details of the Equipment: Enter a description of the equipment. It is best to provide as much identifying information as possible, such as name, brand, make, serial numbers and any other identifying information.
Section II – Purchase Price: Enter the Purchase Price of the Equipment. Then state how the buyer will pay the Purchase Price to the Seller. Examples may include internet banking, check, cash, money order, Venmo etc.….
If you are transferring the Equipment as a gift to someone, then enter a nominal amount for the purchase price such as $1.00 or $10.00.
Section III – Seller’s Representations: If there is a loan or lien of some sort on the Equipment you should identify it in subsection ii. Enter the amount of the lien and who it is held by and then state whether or not the Seller will pay the lien at the time of the sale. For example, except for a $300 lien held by Morton Stanley that the Seller will pay at the time of the transfer or another example as to when the Buyer may assume the lien: except for a $5,500 lien held by Abe Fleishman that the Buyer will assume and pay and will hold harmless and indemnify the Seller from any claim related herein.
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.
Section VII – Delivery of the Equipment: Here the details of the delivery of the Equipment are identified. Enter the location (address), date and approximate time which ownership of the Equipment will be transferred.
Section IX – Additional Terms: Here you may enter any additional information or clauses, though most times no additional terms are needed. In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length. Also, use any predefined terms such as Seller, Buyer, etc. in your clauses.
Section X – Governing Law: Enter your state here. You should pick the state where the Equipment you are selling is located, which is usually where the Seller is located.
Signature Section: Here the Seller and Buyer must sign and enter their phone numbers.
Notary Acknowledgment: In the following states: Louisiana, Maryland, Montana, Nebraska, New Hampshire and West Virginia a Bill of Sale to transfer title MUST BE notarized. Other states do not require notarization, but it may be a good idea to do notarize the Bill of Sale in case the parties ever end up suing one another regarding the sale.
If you do not live in the above-named states and do not want to Notarize the Bill of Sale, remove the notarization page.
**It is important to note if you are taking title to an Equipment from another state than where you reside it is a good idea to have your Bill of Sale notarized.