LAW USE OF A PREPRINTED BILL OF SALE TO STRUCTURE SALES TRANSACTIONS

Use of a bill of sale allows parties to transfer personal property, or stuff, to other parties. Because states have exacting rules governing the transfer of real property, or land, this document is not appropriate for transferring real property, also known as real estate. That critical distinction between property types controls which form should be used in property transfers.

If the property being transferred is a motor vehicle or other item with a motor vehicle-type title-based registration, there is a specific form for that type of transfer which makes statements about mileage and condition. In addition, if the property that is being transferred has been used as a form of security for a loan, whether it is a loan on that property or a different loan for which security was required, the potential of an encumbrance on the title makes it necessary to obtain a release of that loan from the party to whom the loan is owed. This is necessary to be certain that the item is transferred free and clear of the rights of any other person or entity such as a loan company.

If the scenario of an encumbrance on the property is present in the transaction you are entering into, it is doubly important to take steps to avoid problems in the future, by ensuring that any loan obligation is removed from the property being transferred. To be sure that this is handled completely and properly, it may be wise to consult with a lawyer.

A Bill of Sale is a flexible document that can be used to structure a purchase and sale transaction, as evidence of the terms of the sale and of the intent of the parties involved. The Bill of Sale should be signed by both the Buyer and the Seller, and becomes effective as of the date provided in the text of the document.

It is important to be precise when listing the terms involved in a transaction, to ensure that you are receiving the entire benefit of what is being contracted and paid for. Listing the exact terms you expect the other party to fulfill will ensure that you receive the anticipated value in exchange for the cost paid for the goods.