You can prepare a customized bill of sale in five minutes. Learn how to do it properly and how to avoid common pitfalls.
How to prepare a Bill of Sale and how to avoid common pitfalls
A bill of sale form is used to transfer the ownership from a seller to a buyer. The four main bill of sale forms are for: auto, boat, personal property and business.
The Internet made all these forms readily available at a reasonable price.
In five minutes or less, the user can prepare a bill of sale as follows:
- Purchase the form and download the form.
- Open the downloaded form and print.
- Use a pen; fill in the blanks by following the instructions.
The common pitfalls and their repercussions:
- Using a free form download from the Internet. Such forms almost always contain errors and are incomplete.
- Using a handwritten bill of sale. Such forms almost always contain errors and are incomplete.
- Failing to detail and describe what is being sold. It is important to have what is being sold detailed and described.
Avoiding the three pitfalls listed above can help both the seller and buyer avoid both headaches and expenses down the road. The following are few common examples:
- In the event the buyer is unsatisfied with their purchase as they may deem that what they received was not as described. A proper bill of sale including the condition of the item being sold thus resolving such issues.
- Using an improper form that does not detail important information. This causes that buyer issues down the road when attempting to resell what was bought. As an incomplete form may lack a vehicle VIN number or boat identification Hull number.
- The seller also needs to protect themselves as exemplified here. When selling a car, it is important to include the “Odometer Disclosure Statement”. This provides the seller legal protection in case the buyer alters the odometer in the future when reselling to obtain a better price. In such a case, it is impossible to ascertain who changed the odometer reading. The seller by using a proper form protect themselves from dealing with such possibilities.
There are just few examples. There are many other scenarios.
Is a professionally prepared Bill of Sale a must?
Yes. For a small price, this provides legal protection for the both the seller and buyer and saves them costly expenses and headaches down the line.