The Bill of Sale, in simple terms, is a legal instrument that certifies and acknowledges a particular deal, in which the ownership of a property, estate or an asset gets transferred from one individual or group to a new owner. The document is particularly quite simpler, and doesn’t include many complicated conditions or clauses to define the purpose it solves. It holds the minimum required points that are needed, to affirm that the transfer of a property’s ownership has been executed.
Basically, the Bill of Sale document is prepared by the property seller and designed to include all the appropriate details about the property and its sale. Following things hold important points in a general Bill of Sale document:
1) Legal names of both buyer and seller.
2) Identification data, birth details, location, current and permanent addresses of both the parties.
3) Exact and explicit description of the property or asset to be sold.
4) Conditions and limitations that govern the property on sale.
5) In case, the commodity on sale has a particular identification applicable to it, e.g. the seal or signature of its manufacturer or any serial number, that has to be recorded as well.
6) The original cost price of the commodity on sale, and the selling price. In case, both the parties have agreed upon a particular exchange in property instead of having payment in terms of cash, the related details need to be clearly and concisely explained in the document.
7) Any kind of further actions, in case of any of the parties breaches the agreed terms and conditions as per drafted in the Bill of Sale document.
The main purpose to design a Bill of Sale document is, to avoid the chances and situations of any fraud. There have been cases when a property or document gets illegitimately seized or encroached by the parties that have the power, money and other means. Bill of Sale document is structured in the format that holds all the regulatory compliance clauses and areas to prevent any kind of mistreatment of the laws governing the acquisition and ownership of a property, land or an estate.
A Bill of Sale document can be classified into two categories, that solve different purposes depending on the need and demands of the situation and property on sale:
1) Absolute Bill of Sale: An Absolute bill of sale solves the purpose of a legal proof of sale, when the related transaction for the transfer of the ownership is regarded as complete. In this particular bill of sale, the seller gives thumbs up to the whole transaction by acknowledging the receipt of payment, transferring the ownership to the buyer, and releasing all his claims on the property.
2) Conditional Bill of Sale: In this particular bill of sale, the buyer gives a collateral as security, to the seller, until the time he has completed the agreed upon payment for the asset on sale. In case, the buyer becomes a defaulter in completing the payment on the conditions enlisted in the bill of sale, the document may enable the seller to gain possession on the collateral.
The Bill of Sale is a legal document and has to be signed off only after all the terms and conditions mentioned in it are agreed upon by all the parties involved in the particular transaction of a property. It is considered validated and binding only after both the seller and the buyer have read and signed it.
Free Printable General Bill of Sale Form – download