Knowing the construction and structure of bill of sale template can give you insight of what to expect when you have to deal with such a document and its management. Unless you are planning not to buy anything in the future (such as house or cars), you probably don’t see the importance of knowing about this legal written document. But trust me, you are going to need to learn about its function and usage because you will have to deal with important transaction in some points of your life.
Understanding More about Bill of Sale
So, what is bill of sale, anyway? And why is it important for any of your activity? It is a legal written document recording ownership transfer (concerning of an asset) from the first party to the second one with money as the main exchange. When you want to record any sale involving motorcycles, autocars, or properties, you use this bill of sale. Keep in mind, though, that you can also use it for personal property sale, such as furniture or animals. Any item or property that is considered having a high value will need such a written record to finalize and legalize things.
As the rule of thumb, the bill of sale is composed by the seller containing details of transactions. The document will protect the seller and also buyer in case there is a problem in the future – or any disagreement arises during the transaction.
The Elements in Bill of Sale
If you see the bill of sale template, you will see that the document has these important elements:
- Date of transaction or purchase
- Name and also address of both buyer and seller
- The number of paid transfer for the ownership
- Description of the transferred assets
- The guarantee that the item will be free from all offsets and claims
- Warranties representation
- The signatures of included parties, including buyer, seller, and the public notary
It is crucial to remember that each state has its own requirements and regulations when composing the bill of sale form. For instance, in some states, it is only buyer who signs the bill of sale. In others, however, it takes both buyer and seller to sign the deal. Some states don’t require the form to be notarized or legalized, while some still require such a thing.
Important Part: Warranty vs As Is
When you see the bill of sale (whatever item that it), you probably see the term warranty or as is. Keep in mind that these two terms are different and they are representing totally different meaning and functions.
- In As Is term, the seller doesn’t provide any guarantee related to the condition of the item (it can be a property or a car, or such thing alike). It means that the seller won’t be responsible for the item in case problems start arising after the deal. For instance, when you sell a house in the As Is term. In case the house is damaged (leaked pipes or ceiling collapsing), then you won’t be responsible for fixing it up.
- In Warranty term, especially the limited one, the seller has to provide the details of the damage and what is covered by the warranty. You can learn more about bill of sale template if you want to be involved in any transaction.