There are many ways to own a property. One of the common ones is to purchase it from a user who is willing to do away with it or someone who intends to get a new one. There are, however, many pitfalls to avoid while purchasing a property from a private owner. One of the finest ways to navigate such pitfalls is to ensure you are issued a Bill of Sale document by the seller. Many societies today require that you have a Bill of Sale document at the point of sales/purchase in order to facilitate easy process while authenticating the change of ownership.
A Bill of Sale document is used to show that property ownership has been transferred. It shows the details of the object/properties transferred and helps reduce the risk involved in such transfer from one private owner to the other. More precisely, it is used as a proof that the contract did take place.
It is important to emphasize that Bill of Sale Documents do not officially confer ownership on the buyer; it is a prelude to such. The seller is also expected or advised to keep a copy of the document for record purposes. Some of the information in a Bill of Sales includes: the selling price of the property, the property’s ( if it is an automobile) license plate number, the location and date where the purchase/transfer was made, the names of the parties involved, their signatures, and their addresses to legitimize the transaction.
Though a Bill of Sale may be required for the transfer of several kinds of other properties like household items, boats and office materials between private individuals, it is however very common with sales of automobiles and related properties.
Importance of a Bill of Sale
It is important that the seller of a vehicle keep a copy of a Bill of Sale for record purpose but it’s a lot more important to the buyer than just for record keeping. He is the most important document to the buyer until necessary formal documentations are made.
It might be required to complete the title transfer. Indeed, it is compulsory in many states in the USA and other European countries. It might also be necessary to undertake the registration of the vehicle after the purchase has been completed. Before you do acquire the necessary documentation, you might not be able to adequately proof vehicle ownership to traffic officers without a Bill of Sale document.
It creates an avenue for personal properties’ value to enable easy sales tax and other insurance uses. It serves as a protection for both buyers and sellers, i.e. it specifies warranty as applicable to both and protects the receiver for possible harassment by the authority. This document ensures the receiver is kept away from the wrong side of the law. The property is not officially the buyer’s ownership until it is legally transferred.
Lastly, as mentioned earlier, it ensures easy processing of required documents for the acquired properties. Places where a Bill of Sales documents are required involve several states in the USA, e.g. West Virginia, Nebraska, Maryland, England, Wales among others.
Here is our collection of 46 Fee Printable Bill of Sale Templates (Car, Boat, Gun, Vehicle…),