The Bill of Sale is a legally drafted document prepared by a seller for the purchaser stating that the seller will be selling a specific item or property which they lawfully own, on a particular date and at a specified location for a certain sum of money. It is a document written with the intention of attesting that there is to be a transfer of goods, business or other possessions to the buyer. It proves that the buyer has taken possession of the goods or other possessions and is now the rightful owner of the specified goods and contains all the details of what has been bought. A bill of sale may include the agreed to terms and conditions that includes the date of transfer of goods, price and the time of payment as well as all other provisions.
A bill of sale is the document which allows personal property to be transferred from the seller to the buyer. It is an agreement that is under seal and is considered by law to be an agreement which conveys title from the seller to the buyer. The bill of sale which is used to transfer ownership from the seller to the buyer is a fundamental agreement to the sale as well as a receipt of the sale. To correctly use the bill of sale, it is necessary to first obtain the payment either in cash, bank draft, Promissory Note or by certified check prior to giving the bill of sale to the buyer. The bill of sale can be utilized for any item that has value.
The seller shall give warranty that he or she has lawful ownership rights to the goods being sold and has
complete authority to sell and convey title to the buyer. Furthermore, the goods are being sold without any other encumbrances or liabilities or other undesirable claims on it.
Typically, a bill of sale will have the names and addresses of the seller and buyer. The bill of sale will state that the seller undertakes to sell to the buyer goods as laid down in the document. The purchase price shall be set out in the bill of sale as well as the mode of payment, which may state a down payment as well as when the balance is to be paid over time. The seller shall state the condition of the goods being sold and shall also specify any defects that may exist in those goods so that the purchaser is fully aware of what condition the goods are in while purchasing them.
The manner in which the goods are to be delivered to the purchaser shall also be specified in the bill of sales. This may include that the buyer is to take immediate delivery of goods or that he will take all responsibility to pick up the goods or even that for an additional delivery charge, and whether the goods shall be delivered to him within a specified time and at a given location by the seller. Finally, the seller and buyer shall sign and date the document.
The Bill of Sale is an easy document to fill out and with low cost pre-defined forms being available, it is very simple and effortless in purchasing one from a vendor and filling out all the necessary information rather than going through a more expensive and time consuming exercise of drafting one from scratch.
Author Resource:-
Wade Anderson is a CPA and operates DigitalWorkTools.com. Click to view a Bill Of Sale Form
![[Valid RSS feed]](http://cdnimages.articlefriendly.net/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
