If you ever purchased a property or a product, then you should be familiar with the concept of the bill of sale. It has been used for many years by people who want to buy expensive goods such as vehicles, boats… A bill of sale form is most commonly used for vehicles, it can be helpful in confirming that an item was sold by a seller/individual on a specific location and time in exchange for an amount of money or property.
A bill of sale is a very important legal document because it transfers the title of ownership and is an evidence for the transaction. If you want to know more about the ins and outs of a bill of sale, then here is all you need to know about a bill of sale template.
A bill of sale is a valuable form of document since it will transfer the title of ownership from one to another and is an evidence for the transaction. We will go into further details below.
What Exactly is a Bill of Sale?
According to Investopedia, a bill of sale is a legal document which determines sale or transfer of goods and property in writing from one individual or party to another. It also serves as a legal proof proving the property transaction between the seller and the buyer.
Furthermore, a bill of sale template is most often for vehicles. However, they are also for boats, trucks, motor bikes and guns. Though, always remember that you cannot use a bill of sale form for real estate. The name of bill of sale varies with respect to the objects being transacted such as a boat bill of sale, gun bill of sale and so on.
Moreover, A bill of sale template mostly use for vehicle transactions. They may also be used for boats, trucks, motor bikes and guns but they cannot be use for real estate. The name of the bill of sale is varies base on the object being transferred such as a car bill of sale, gun bill of sale…
A vehicle bill of sale can be complicated or simple depends on the type of transaction, even a small receipt can be count as a bill of sale determining the specific goods sold to the customer at a definite price. When creating a car bill of sale, you need to be very specific and put in every detail about the goods sold to the customer.
What is the Difference Between a Bill of Sale and Sales Contract?
People tend to get confuse between a bill of sale and a sales contract, it usually happens due to the similarity between the two. However, both still have differences and we will go into further details below.
Bill of Sale
Bill of Sale is a legal document record the transfer of goods from the seller to the buyer. The bill of sale is used to transfer the right of ownership from the seller to the buyer, it also focusses more on determining the specific property that the buyer is receiving at the purchase moment to ensure that the seller holds the right the transfer the title to the buyer. The seller also can give guarantees and warranties about their property, they also have the right to disclaim though warranties.
On the other hand, a sales contract is a covenant between the customer and the seller concerning the upcoming sale of goods unlike the bill of sale. In this contract, the property is immediate transfer after both parties sign the sale contract, the different is that the sales contract is used prior to the goods getting exchanged while the bill of sale is used after the exchange is made.
Features of a Vehicle Bill of Sale Template
When the exchange of property begins, there is a requirement for a contract to determine the ownership of the exchanged property. Therefore, the Bill of Sale is made to confirm the transfer of ownership for the properties. It includes information such as which item was sold, seller’s information, buyer’s information, location, date and time of the transaction, paid amount… We will go into further detail of the Bill of Sale’s features.
Proof of Transfer of Ownership to the Buyer
This form is mostly used for cars and other vehicles, it can be a car bill of sale, auto bill of sale or vehicle bill of sale. It can also be used for the smallest of goods that need proof of ownership. This form can always be put forward as a claim because it can be recognized in the court of law.
Broad Customization for Situations
A custom bill of sale can be made according to the request between both parties, either a buyer or a seller. The customization is done on the warranty condition made by the seller to the buyer. Also, if the product or property has any condition to be met to complete the contract, customization can be done. The buyer should be more concern about the authenticity and history of the property than the modifications of the bill of sale.
When and When Do You Not Need a Car Bill of Sale?
You will need a bill of sale form in these situations:
- When you are the owner of a motor cycle of any properties beside real estate which you’d like to sell and keep a record of the transaction.
- When you’d like to purchase a vehicle or any properties beside real estate from a private seller and you want to have the evidence of purchase along with the record of agreement.
You do not need a car bill of sale in these situations:
- You don’t need a bill of sale when purchasing a real estate. Buying a real estate property is a big investment and require complicated requirements, thus a bill of sale is not needed.
- Bill of sale is not use for rendering services. If you need to hire services for babysitting, woodworking… you will need another contract form instate of a bill of sale.
- When buying or selling small items which are cheap, you won’t need a bill of sale because it may lead you into complications.
What are the Elements Included in a Bill of Sale Template?
If you are buying a vehicle in anytime soon, then you should understand that you would require a bill of sale in this regard. Protecting both the buyer and the seller by determining the terms and conditions, a bill of sale is one of the appropriate documents required in any transaction. If you are preparing to make your own bill of sale template, then you need to ensure about the following elements in the auto bill of sale.
If you are planning on buying a vehicle, you should prepare a detail bill of sale template and ensure these following elements are included in the auto bill of sale:
This is a very important element since it keeps track the time when the seller transfers the property to the buyer. This date should be signed by both the seller and buyer.
Detailed Description of the Vehicle
You must include the detail description of the vehicle in the contract because it will identify the property being transfer. You should first provide the type of vehicle (car, boat, motor bike…), design of the car, decoration (brand mark, decals…). You need to put in the specific vehicle information such as the model number, make, year, vehicle identification number (VIN), odometer, vehicle color.
Names of the Buyer and Seller
The bill of sale contract need to have both the legal names of the seller and the buyer, along with that is a confirmation that the seller is the first owner of the property and have the right to sell the property and transfer the right of ownership to the buyer.
Purchase Price or Amount Paid for the Vehicle
You will need to list the purchase price of the property or the amount that will be paid for the property. You will need to mention the amount of money was paid in full for the property on that date. You also need to mention which method was used to pay for the property or if the you wish to pay in installments.
Signatures of the Buyers and Sellers
In the end, you must include both signatures of the seller and the buyer. A bill of sale contract won’t be valid and official if they not include the signatures of both parties.