A bill of sale is generally prepared for documenting the transfer or the sale of the ownership of a product, vehicle or property. It is a document that is exceptionally important is the transaction is needed by state law to be registered for tax purposes. It is a document which is also used in the form of service agreement especially as a proof of the work scope that parties undertook to deliver. Making a perfect bill of sale is not an easy thing to do. The bill of sale that you make needs to be created effectively so that it documents the transaction and protects an individual from any sort of problem. You will be able to learn How to Make a Bill Of Sale perfectly only when you are aware of the important bits of information to be included in the document. Apart from this, there are even some optional points that also need to be considered.
Things to Consider Before Making a Bill of Sale
Prior to making a bill of sale, it is necessary to think about the main reasons behind the use of this document. This will help you in understanding the things or the points that you must include in the document. Always remember that a bill of sale is basically a kind of written record of a transaction. It shows that a thing or a product was sold at a certain price and in a certain condition agreed by both the buyer and the seller. Getting every single point of transaction in writing, helps in avoiding all sorts of discrepancies arising post sales.
Points to be Included in a Bill of Sale
If you are planning to make a proper bill of sale on your own, it is suggested that you include the points that have been mentioned below:
• Details of the product being sold. If the product is a property then you must mention the measurements and the special attributes of the property. If it is a vehicle, mention the make, model and the year of manufacture of the vehicle. You must also include the condition of the vehicle in the bill of sale.
• Sale price
• Date of transaction
• Names and contact addresses of the seller and the buyer.
• Statement from the seller proving the legal ownership of the product being sold.
• Statement from the seller proving that there are no debts outstanding on the product or the property that is being sold.
• Signatures of the seller and the buyer.
• There are some bill of sale forms containing a separate section for the notary to put in their details. By notary, it means an individual who is legally empowered to witness signatures. He or she also has the right of certifying the validity of documents. These are generally police officers or justices. However, this is just an optional procedure and is not required for the bill of sale form to be fully effective.