Bill of sale is the document created by a seller to the buyer which has legal validity. The document will contain all the information on the selling of the item to the buyer to confirm the ownership exchange of the item. The bill of sale assures both buyer and the seller that the transaction was performed in an agreeable manner to the parties who are involved in the exchange of goods. This document is meant to reduce fraud and the illegal acquiring of others’ property. The seller is drafting this document and it should include all the details associated with the sale of goods.
Bill of sale offers protection to both seller and the buyer for the transaction taken place between them. It acts as the evidence of sale on the property from the seller to the buyer. Such a legal document or bill is necessary in the case of automobile sale and other asset or property. Legal bill in a printed format is not necessary as you can make your own bill of sale whenever you would like to sell a property. There are two types of bill of sales such as absolute bill and the conditional bill.
Absolute bill is used for considering the transfer of title is completed. In absolute bill, the seller agrees that the buyer has paid for the property and the title is transferred to the purchaser. The seller also agrees that all the claims related to the property are transferred to the name of the purchaser. Conditional bill allows the owner to gain back the control of the property till the buyer fully pays for the purchased property. In case of non-payment as agreed in the document, the seller can gain permanent ownership of the property.
Various kind of information should be included in the bill of sale to make it legally bind. You have to write down the date of transaction in this legal document. Next to date, write down the full contact information of the buyer such as the name, address and the contact number. After write down the full contact details of the seller and should be specified as the seller. It should contain the information that the transaction is agreed between both parties. Provide the detailed information of the asset or property that is sold in the document. If there is warranty coverage for the selling property, then you have to clearly mention the period of warranty as well as the type of warranty.
If the sale of an automobile is taking place, then you have to mention model number of the vehicle, mileage, manufacturer of the vehicle and the chassis number. The important thing that should be included in the bill of sale is the amount on which the selling took place. The amount should be included both in words and numerals. The document also should contain whether the purchaser has paid full amount or agreed to pay in installments. The most important thing that bill of sale should contain the signatures of both seller and buyer which are signed in front of the notary public.