It’s important to use a bill of sale to verify a transaction when you purchase an item that has a considerable amount of value. Typically, a bill of sale will be used when you purchase a television, car, firearm or large item. This document is legally binding and shows that you are the new owner of the specified asset if you are the buyer in a transaction. It also protects the seller from any liability or disputes in the future that pertain to the item being sold. It’s important to specify certain things on the bill of sale. Here’s a list to help you write one if you’re going to buy or sell a valuable asset:
Names and Addresses
The first item listed on a bill of sale should be the full legal name and address of both the buyer and seller. In addition, you could also include the full legal name of the individual who previously owned the item in question.
A detailed description of the item should also be included on the bill of sale. This includes the make, model, color, design, size, condition and features or problems that that help describe the thing being sold. If you are selling a car, you would include the vehicle identification number. If a firearm is the item that is being sold, a serial number would be included.
You also want to specify any special conditions that are included with a sale. Special conditions include warrantees or a “sold as is” declaration. This section protects both a buyer and seller. If the item fails to work after a warranty has been given, a buyer can be reimbursed. To protect the seller, when a sold as is declaration is given in the bill of sale, a buyer knows the risk that they are taking and should understand that they won’t be able to get their money back if the item stops working.
Transaction Date and Amount Paid
After listing and describing the item that’s being sold, you should record the date of the transaction. You can also include the full legal name of the person who owned the item before the seller. Write down the amount paid and use both numerals and words. It’s important to also specify the method of payment that’s being used for the transaction. This could include a credit card, cash, check or funds from a bank. If there are any agreements pertaining to interest rates, late payments or pending payments, you would include that in this section too. Finally, both parties should sign the document.
Check your bill of sale to make sure that is legible. It’s also a good idea to double check each section to ensure that everything is correct before you sign the document. Copies for the bill of sale should be made for both the buyer and seller and kept in a safe place. If taxes are due, you can use a bill of sale to figure this amount.
If you follow these steps, you’ll have a legally binding document that acts as protection for both parties.