A Bill of Sale: What Is It?

By The Law Office of Yoel Molina.
 
Bills of sale have been utilized for ages whenever individuals have purchased particular types of goods, such as horses, dogs, boats, or cars. A bill of sale, which serves as a record of the transaction, states that an item was sold by a certain seller at a particular time, place, and for a particular amount of money or other valuable property.

A hybrid legal document known as a bill of sale confirms the transfer of property ownership while also serving as proof of contract. Because it is frequently used for official purposes, including registering an automobile or boat, a bill of sale might need to adhere to state rules. For instance, several states want an odometer reading on a vehicle bill of sale, and some states also demand that it be notarized. A bill of sale can be signed by both parties, but frequently just the seller is required to do so.

When a bill of sale is used as collateral for a loan, things can get tricky. For instance, if a borrower pledges a car as collateral for a loan, the lender may insist on a bill of sale for the vehicle that will only take effect in the event of a default by the borrower.

A loan may also include a bill of sale as a component. For instance, the entire arrangement can be structured like a bill of sale if you're purchasing a car utilizing financing (installment payments), even if technically the transfer of title may not occur until all loan payments are fulfilled. Because some lenders or sellers may exploit the aforementioned procedures, state laws frequently control loan/bill of sale combinations.
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Warranties may also be included in a bill of sale (promises and assurances as to the condition or history of the item).
 

If you have any questions about this article or similar matters please contact our office, Law Office of Yoel Molina, P.A., at fd@molawoffice.com or at 305-548-5020, option 1