A Bill of Sale is an extremely common legal document that is given by a seller to a buyer. It’s widely seen during the sale of automobiles, real estate and other large scale property that cannot be simply transferred without legal proof of purchase. Most adults will have encountered a Bill of Sale at one point or another, or have heard it referred to.
What is a Bill of Sale?
As stated above, a Bill of Sale is a legal agreement. There are two kinds of Bills of Sale, an Absolute Bill of Sale is simply records that a sale has taken place and has little to no security. A Conditional Bill of Sale is a more complicated document, indicating the conditions under which a sale has or will take place under. Most of the information on this page will pertain to Conditional Bills of Sale.
A Bill of Sale indicates that on the date and in the place specified in the document itself, that the seller transferred ownership of a piece of property, either personal or real estate, specified in the document to the buyer for the amount of money or other value specified again in the agreement.
Depending on the agreement, it will include a description of the property being transferred, such as the type of property, make, model number and even serial number. In a Real Estate Bill of Sale, it will include the address of the property and may include a description of what buildings are on the property at the time of sale.
One of the most important elements that the seller must include on a Bill of Sale is, naturally, what the terms of the sale are. This is usually the dollar amount that the property is being exchanged for, but it can also be the services being exchanged for the property or another piece of property being exchanged for the property, which may require its own separate Bill of Sale.
How a Bill of Sale is Used?
A Bill of Sale is used by legally binding both the seller and the buyer into the exchange. When the Bill of Sale is signed, both parties are required to complete the sale under the conditions specified in the agreement, or they could be sued by the other party for breach of contract.
Free State Specific Bill of Sale Forms