Provides details of the exact item a buyer will receive. A sale contract is used before an exchange of an item occurs. Make sure you understand the differences between a sale contract and a bill of sale when deciding which document you need.ĭetails the terms for a buyer to agree to purchase an item and a seller to agree to sell it. In some states, the DMV requires a bill of sale signed by both the seller and the buyer. If you are the purchaser of a vehicle, you can apply for a title in your name at your state's DMV when you have the signed bill of sale and pay a title transfer fee. Every state requires this certificate of title, a document that records official proof of ownership of a vehicle. ![]() However, the vehicle's certificate of title represents the actual ownership. An automobile bill of sale represents that the right to ownership of the vehicle has been transferred. You must understand the intricacies of the bill of sale with motor vehicles if you plan to buy or sell an automobile. ![]() Transferring Ownership of a Vehicle With a Bill of Sale An attorney can help ensure you're using the correct document and are including all information that you need for your transaction. If you're not certain whether you need a bill of sale, you should A bill of sale is not required for small-scale sales. If you own a business that receives payment for selling products, a general receipt is sufficient.Īlthough deciding whether you want a bill of sale for inexpensive property is a matter of personal preference, many people don't feel that creating a bill of sale for less expensive items is necessary. ![]() If you're providing or obtaining a service such as business consulting or babysitting, you should instead use a general contract for these services. (a legal instrument used to transfer interest in real property) when you're dealing with a real estate transaction.Ī bill of sale transfers ownership, not services. You can't use a bill of sale to transfer real estate between owners because real estate transactions are more complicated than the types of transactions listed above. You will need additional forms from your state or local government, or a Some transactions involve an exchange of property but do not require a bill of sale, including the following: Many states will require a signed bill of sale in cases when you are transferring a title with a state's department of motor vehicles (DMV) or buying and selling branded livestock. You plan to purchase a motor vehicle or other property from a private seller, and you want to record the proof of purchase and the details of your agreement in writing.Ī proof of purchase is required. Examples of property include a motor vehicle (such as a car) or other personal property, but not real estate. You own property you would like to sell and need to have a record of the purchase detail for accounting records. You should use a bill of sale for the following circumstances: Since a bill of sale will include details about the condition of the item sold and any warranties, as well as terms of payment, this document acts as legal proof of the agreement. A bill of sale should include all details of the transaction as a way to protect both parties if a disagreement about the condition of the item or terms of the sale occurs. This legal document records a transfer of ownership of an asset from one party to another. As a rule, the seller will draft the document. A bill of sale is also useful for transfer of other personal property such as a bicycle, furniture, a laptop, or an animal such as a horse or other livestock. You can also use a bill of sale to record the transfer of personal property, such as purchasing or selling a used car. You'll typically see a bill of sale used to record the sale of automobiles, motorcycles, watercrafts, or other objects associated with transportation. This type of document serves as legal evidence that the seller transferred his or her rights to the assets described in the bill of sale.Ī bill of sale must include key information such as the following: ![]() This document becomes important when you need to buy or sell personal property. You may associate bills of sale with used vehicles, but you can use this document for a variety of items.Ī bill of sale will detail a transfer of property or sale of items between a seller and buyer. A bill of sale, proof of purchase, proof of payment, As Is Bill of Sale, Proof of Sale, Sales Slip, or Sales Receipt, is a document or receipt used to transfer the ownership of an object such as a vehicle.
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