How to Create a Bill of Sale
A Bill of Sale is a legal document that confirms the transfer of ownership of an asset from one person to another. The document is typically used when selling or gifting property, such as a vehicle, boat, or piece of equipment. In this article we will discuss all the things you need to create a bill of sale.
A Bill of Sale Should Include:
- The name and contact information of the buyer and seller
- A description of the asset being sold
- The date of the sale
- The purchase price of the asset
- Any conditions attached to the sale, such as warranties or guarantee
- Signatures of both the buyer and seller to confirm the agreement.
Creating a Bill of Sale
To create a Bill of Sale, you will need to gather the necessary information and then draft the document. Be sure to include all required information, such as the names and contact information of the buyer and seller, a description of the asset being sold, the date of the sale, and the purchase price. If there are any conditions attached to the sale, be sure to include those as well.
Both the buyer and seller should sign the document to confirm the agreement. Once the document is signed, it should be kept for the records of both parties.
Bill of Sale Template
You can download free bill of sale templates here.
FAQs Regarding a Bill of Sale
Is a Bill of a Sale Legally Binding in Court?
If a dispute arises later, the Bill of Sale may be used as evidence that the ownership of the asset was transferred from one person to another. However, it is always best to consult with an attorney to determine if a Bill of Sale would be legally binding in court.
Do You Need a Notary to Sign It?
In some cases, you may need to have the Bill of Sale notarized. This is typically required when selling a vehicle. Check with your state’s DMV to see if a notarized Bill of Sale is required.
Can it Be Hand Written or Does it Need to Be Typed?
A Bill of Sale does not need to be typed, but it is recommended. This ensures that all the required information is included and that the document is legible. If you choose to handwrite the Bill of Sale, be sure to use print handwriting for better legibility.
Do I Have to Have One?
While a Bill of Sale is not required in all cases, it is always best to have one. This document provides evidence that the ownership of an asset has been transferred from one person to another. It can also help protect both parties in the event of a dispute.
Many people who sell on platforms like Facebook Marketplace and Craigslist, don’t consider writing a bill of sale for their sold items. At least with FB marketplace it’s an online transaction where you have a record of the price and the surrounding dialouge. Craigslist does not offer such audit trails. For anything you sell on any platform you should consider a bill of sale. This will protect the buyer from the seller coming back to you about issues and liability. It protects the seller from the buyer coming back to say they still own it.
