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Published : Wed, Sep 5 2018 :5 PM.
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A Bill of Sale is used to protect both the seller and the purchaser in the case of any future issues. Since many purchases and sales between individuals are transacted using cash, it can be hard to prove that an item was received or paid for without proper documentation.
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A bill of sale is an important part of any vehicle sale; however, it is not the only thing you will need to consider. No sale is final until you complete a title transfer. Without this step finalized, the seller may be liable for fines and violations associated with the car. As a buyer, BE SMART. Do not get saddled with a lemon. Order a vehicle history report to know for certain you are buying a gem.
Item Description: This may be simple or detailed, depending on the item for sale and state requirements. For example, when selling a vehicle, you usually need to include the vehicle identification number (VIN) and odometer reading. If you are selling a horse, you’ll need information about registration and breeding.
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A bill of sale is a type of sales receipt often used when an individual is selling an item that carries a high value, such as a used car, boat, or aircraft. A bill of sale can document the sale of personal property, tools, animals such as livestock or pets, and household furnishings or appliances. However, this type of documentation is generally not used when selling low-cost items, providing services, or for real estate purchases. While the seller typically provides the document, both parties gain some protection from it: Buyers can retain a copy of the bill of sale as proof of purchase, payment, and ownership, and sellers can document the terms of the sale and the condition of the item. Both buyers and sellers may need a bill of sale for accounting, tax reporting, or insurance purposes.
It is not recommended that you use a Bill of Sale in instances where there is not a transfer of ownership since a Bill of Sale is best used for the sale and purchase of physical goods. When providing or hiring services, it is more appropriate to use a document like a Service Agreement or an Independent Contractor Agreement. It should also be noted that you ca not use a Bill of Sale to transfer the ownership of or the title to a piece of real estate. In such instances, you will likely need a Quitclaim Deed or a similar document.