A bill of sale documents the purchase of a piece of property and its transfer from a seller to a buyer. A bill of sale is a document that provides proof of a sale and the transfer of property from one party to another. It can be used when selling a variety of items but is most commonly used for vehicle sale transactions.
What you should include in a bill of sale
The bill of sale will identify the parties involved in the transaction, the property being transferred, and the date and price of the transaction. As a result, both saoe will have proof of the sale. It can be important to show a release of liability on the part of the seller. For example, say a car was sold from one private party to another.
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However, the buyer did not properly register the vehicle and used the car to commit a crime. With a bill of sale, the seller could prove they were no longer in possession of the vehicle. While many states provide bill of sale forms, your state may also allow you to write one yourself.
However, it will need specific information that often includes:. Filling out the title when selling your car will vary slightly from state to state. Signatures are often required to release seller auot in the vehicle, transfer ownership to the buyer, and certify that all the information provided was true and correct.
States often give buyers a set period to register the vehicle and pay the tax. Cornell Law School. The Balance Loans.
Table of Contents Expand. Table of Contents. What Is a Bill of Sale? Who Needs a Bill of Sale for blll Car? By Jessica Walrack. Jessica Walrack is a personal finance writer who has written hundreds of articles about loans, insurance, banking, mortgages, credit cards, budgeting, and general personal finance over the past five years.
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