What is Bill of Sale
A bill of sale is a transaction document between two parties. It is a document establishing the details of ‘Purchase and sale’ and information about ‘ Buyers and sellers.’ The forms use very simple language stating the details of the parties with financial terms of agreement. When both parties agree, It is followed by a signature. In the united states of America, every state has own Bill of sale. Some need it; some do not need it. They every kind of purchase and selling require a different type of bill of sale. For example to sell a vehicle you need a different kind of BOS, while for a piece of equipment or an Airlines or a private jet, you need a separate Bill of Sale.
In simple words, first, you have to find out whether a state need a bill of sale or not. Then you have defined the nature of purchase or selling. Then you will get the form according to the quality of Goods, As we have stated earlier.
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So, let's take an example of Buying or selling a vehicle. What is the process for it?
Understanding the Bill via an example of selling or Buying a car
Let's say you are going to buy a car privately. First, you would find the dealer for it. Then the car. When you have a car, you will ask. Whether you need to pay the entire amount in cash or there is a need to take a loan or credit. You have become the purchaser, and the dealer has become the seller. You will need to pay full cash at the time of the sale. This information will be put on a form, which is the starting point of bill of sale.
After you have negotiated the terms, you will want to know about the Vehicle Identification Number. As a buyer, you should verify the vehicle. Starting by Finding VIN which consists of 17 Unique Digits. Either ask the seller about it, or you can find it where door meets the car or at the side of drivers side windshield. Sometimes it can be found at the front of the engine block under the hood. If you are buying an old car, then look at the front end of frame.
If you do not want to do all these things, you can visit some websites on the internet to check about it. You can find whether it had any accidents in the past, ownership history and water damages.
However, even after all this, you must get a third party mechanic to check the vehicle. Because when you are paying for insurance, anything is left behind. You will not be paid for it if something happens next time.
Document For Completing The Sale
After it, you need to get the original vehicles documents. It's an essential process of document for completing the sale. The seller must have these documents, which mention Title and registrations. Then there is the Bill of sale which states every detail related to the vehicle, the buyer and the seller. Since it is a legal contract, it must be filled without any small mistakes.
Then there is the Odometer Disclosure Statement which is required. The buyer must verify This document if the vehicle is under ten years of age and weight under 16000 pounds. The seller also has to acknowledge the truthful of the details provided on the document.
Lastly, you need a photo Id of the seller. There are so many scams going around, a buyer needs to authenticate if the seller’s Bill of sale is legal and has been authorized to do the transaction.
Now, after completing the sale, you need to finalize the bill of sale. After it for a proper registration of the vehicle, you will need to take it to the DMV.
So, in a nutshell, you will need Bill of sale, Title, Odometer Disclosure Statement, Proof of car insurance, identification, fees, and emission test.
Critical Terms in Bill of Sale
There are a few key terms in Bill of sale, which you need to understand careful to fill the form.
As- is - It's a clause or statement definition the condition of the vehicle. Where its sold for the first time or second time. In mere simple words, it describes in which condition the good is. The buyer and the seller both are fine with it.
Buyer - You as a buyer paying the money.
Payment - The amount a buyer pays.
Vehicle Identification Number - The unique 17 Number Digits code, which is a serial number of a vehicle. You must out the VIN into the Bill of sale to make the purchase valid.
So, this is the information about the bill of sale. However as the nature of Goods changes, the type of bill of sale also change as well.