What Is a Bill of Sale?
Any time you enter into a private purchase agreement, you should document the transaction and ensure that you provide the other party with documentation, too. The easiest way to accomplish this is with a bill of sale document which records the date of the purchase, the item being bought and the names of the buyer and seller.
A bill of sale can be used for nearly any type of transaction, and it signifies the legal transfer of an asset from one owner to another. It is commonly used in transactions involving high-priced items, such as the sale of a car, firearm or other valuable item.
A bill of sale is important because it protect both parties from any dispute which may arise in the future. By documenting the details of the transaction, a bill of sale creates a contract between the buyer and seller ensuring that both parties agree to the terms of the transaction and certify the accuracy of the information contained in the bill of sale.
Why and Who Should Use a Bill of Sale?
Two parties — the buyer and the seller — will typically complete a bill of sale following a purchase. Both parties benefit because it provides a record of the transaction and specifies important details. Additional benefits of a bill of sale document include the following:
- Create a legally binding agreement between buyer and seller
- Buyer is released from liability for the asset being sold
- Seller assumes all legal rights to the asset being purchased
Buyers and sellers should collaborate when drafting the bill of sale to ensure that it meets the needs of both parties. Buyers and sellers should also ensure that it accurately represents the transaction taking place.
Advantages of Using a Bill of Sale Template?
A bill of sale offers security to both a buyer and a seller, and in addition to the security it offers, it is a legally binding contract. As such, it’s important that it be drafted correctly and phrased carefully. You might consider investing in assistance from a legal service provider to write a bill of sale for you, but a template can provide the same results, as well as these benefits:
- Review and revise the document whenever you need to
- No need to wait for a separate party to complete the contract
- Create a template that’s relevant to your unique transaction
A bill of sale is an important contract between buyer and seller, but it doesn’t have to be written by an attorney in order to be legally valid. Using a template can save you precious time and money while allowing you to customize the content of the document according to your needs. If you would like additional reassurance, you can always have an attorney review your template document before you use it.
When To Use a Bill of Sale?
A bill of sale can be used any time an asset is being transferred from one party to another. Whether you’re selling a car, piece of jewelry or another high value item, a bill of sale is an important tool for verifying the details of the transaction that takes place. As such, it should always be completed at the time of the purchase.
When, in the course of a transaction, should a bill of sale be used? A bill of sale typically should be completed by both the buyer and the seller after the terms of the sale have been negotiated and payment has been exchanged. At this point, once the transaction is complete, each party should certify and sign the bill of sale.
Once a bill of sale has been signed and completed by both parties, it is a fully executed legal contract. Both parties are bound to its terms, and it legally confirms the transfer of the asset from the seller to the buyer.
Related Resources
For more information on a bill of sale document, Investopedia has a great resource defining the term and delving into its context. This article provides readers with information on the legal significance of the document as well as its function in certifying transactions. As the resource notes, a bill of sale can vary in complexity, depending on the nature of the transaction.
Wikipedia offers an equally helpful overview of a bill of sale contract with their article detailing the history and use of the document. This source offers insightful details about the historical uses of the bill of sale and the various features that the document might have. It includes information about common law applications and common conditions of a bill of sale, too.
