Download Bill of Sale Template for free

Why A Bill Of Sale? Why Templates?

Quite simply, a bill of sale template is designed to ease the burden of having to draft your own document from scratch. It could save you time and possibly legal trouble after completing a transaction, even if specific details were discussed beforehand. A Simple bill of sale template can be readily accessed by a quick browser search and are usually fundamental in their coverage of details. So why is something so elementary so significant to you, the buyer, and if applicable even your business?

Importance And Contrast

Would you purchase a high dollar item at any store and walk out without your receipt? It’s not as simple as that but the principle remains; as a buyer you want the business to be accountable for making the sale in case there’s an issue. You also want proof that the product you purchased is indeed yours, without a doubt. As a seller, you need to either protect your guarantees or make it known that there never was one. By making all of the important details visible and understandable, you set your buyers’ minds at ease which reciprocates.

There are, of course, intricacies to this very basic understanding of what a bill of sale is meant to do. Depending on the state you live in, the state the sale was completed in, the property that was sold, whether a business is one of the interested parties, and even if sales tax is relevant to the item; the layout of your document may evolve quite drastically. This applies to the importance of the document as well. You may seek a template for a simple bill of sale if you purchase a car part but to buy a car, you’ll be needing a bill of sale template for car ownership whereby you can have a title transfer. In many states that means having a notary public present as well as two witnesses to attest to the validity of the transaction. You can see the complexity and importance of one over the other.

Invaluable Inclusions

Of course with varying degrees of complexity comes the need for prerequisite knowledge, at least enough to make an informed decision. You don’t have to pass a BAR exam to be confident that you chose the correct bill of sale template. Nevertheless, certain things need to be included for specific purposes. Outlined below are the must-have parts of any bill of sale template.

Interested Parties Information

“Interested party” is another way to say “anyone involved.” They could be individuals, businesses, corporate entities, and so on, but if they have something to gain or lose by signing or not signing the document, then they are an interested party. This information should never be excluded for any reason. It entails all parties full legal names or in the case of businesses, their full title including LLC, DBA, etc. It would include the current address or most current to the date of signing. P.O boxes are unacceptable, as they are a proxy, and allow for anonymity. A bill of sale has the principle of full disclosure, so trying to hide is a deal-breaker. Next is phone numbers and email addresses if all parties deem it necessary. This won’t affect the validity of the document but it certainly helps to assert accountability which is the foundation of all contractual agreements.

Details Of The Property Being Sold/Bought

This kind of goes without saying but it needs to be said for the sake of being said. Be as descriptive as possible! Start with a brand name and work your way down the subcategories. Typically, for any electronics or tools, this will look something like “Brand > Model > Model Number > Serial Number > Color > Dimensions (If applicable).” Be sure to note the overall condition of the property including any distinctive features or blemishes. Similar to when you return a rental car or a U-haul; the associate checks over the entire vehicle with a notepad in hand to mark down every little scratch. Be that person; It’s okay to be particular in this situation.

Compensation Terms

How much money was agreed upon for this transaction to take place? Will it be one sum or multiple payments over a specified period? Is there a line of credit being extended from one party to another? All of this matters and if applicable should be included in this area. It also could be beneficial to detail the specific payment method being used. Paypal is increasingly common but cash in hand still facilitates most transactions.

For Vehicle Transactions

This is where it becomes a bit more complex and significantly more of a mandatory legal process. Be sure that everything you’ve seen until now is included as a generalized “Section 1,” and that you have a primary understanding of the laws in your state regarding vehicle sales and title transfers. The next portion would include exact details of the vehicle to be transacted. The details “tree” would look something like “Year > Make > Model > Trim > Color > Engine Size > VIN > Condition > Blemishes/Enhancements.” With this information, you can proceed to the next portion.

Other Highly Useful Things To Look For

No matter which bill of sale template you’re setting your sights on you can be certain that you want it to include the legalese that describes the exact accountability and obligations that included parties will be held to. This is the portion where it’s made undeniably clear that the agreement taking place is understood by all involved. It will include a segment by which each party certifies the truth in everything they’ve stated in the agreement. It may also entail particular clauses that could range in purpose and need. For instance, a transaction within a family may hold a certain “right to change course,” if say, the death of a person involved occurs within a set amount of time.

Lastly, and maybe most important of all is the signature portion. It’s often overlooked as fundamental, therefore insignificant in some way. This couldn’t be further from true. A handwritten signature is the seal of agreement for all legally binding documentation. Without it, the entire process becomes impersonal and lacks individual accord to stay true to one’s word. This section may also include the witness signatures, if applicable, and the area where a notary public might stamp.

It’s Really That Simple!

Though it may seem like a lot of information to cross-check when searching through templates, all of this truly is vital to keeping everyone involved at a happy medium and legally out of harm’s way. Just imagine, this was all for the template. Drafting and making sure a document is legal can take quite a long time and could incur a hefty cost, especially if you involve legal counsel. By comparison, the time, money, and headache you’ll save by editing in MS Word bill of sale templates that you’ve chosen; this small crash course will be a saving grace!