What is a Personal Property Bill of Sale?
A Personal Property Bill of Sale is a legal document that records the transaction for a sale of personal property by trade or cash payment. It is considered a binding document upon the signature of both parties, after the completion of each transaction. It serves as evidence that the seller has transferred the rights of the property to the buyer. It also protects everyone involved in any disagreements that may arise in the future.
Types of Bill of Sale
A bill of sale generally takes the form of the following:
Absolute: It is a complete transfer of property with no restrictions or payments following the sale.
Conditional: It is used when you are transferring property as security for a loan or if the buyer and the seller must meet first specific criteria to complete the sale.
Quitclaim: The quitclaim bill of sale form is used to record a simple transfer of ownership of the property from the seller to the buyer without any liability of the seller to provide the buyer with a warranty.
Bill of sale with warranty: A warranty bill of sale details the sale of an item and offers promises about the seller's title and provides protections for the buyer. It includes representations and warranties and discusses indemnification provisions of the property.
Who is responsible for the Personal Property Bill of Sale?
Both the seller and the buyer of the property are responsible for the personal property bill of sale. The document frees the seller from liability and proves the buyer’s ownership. The seller is responsible for writing the bill of sale, but both the buyer and the seller should keep the document for their records. Additionally, both parties are also involved in signing the documents, settling terms and agreements, and finalizing transactions.
Personal Property Bill of Sale common terms
Here are some common terms used in understanding the personal property bill of sale:
Personal Property: It is any form of property that is movable; those are belongings exclusive of land and buildings. Examples of personal property include equipment, furniture, jewelry, pets, tools, appliances, and vehicles.
Buyer: The person in the transaction who avails and pays the seller in exchange for a property.
Seller: The person in the transaction who offers a property to sell.
Notary: A person authorized to perform certain legal formalities, especially to draw up or certify contracts, deeds, and other documents for use in other jurisdictions. Once the notary has signed the document, it is legitimate.
Gift: When an asset is given to someone without compensation, that asset is considered a gift.
Payment: It is the money from the buyer to the seller in exchange for a property.
As-Is: A section of the bill of sale that states the asset is being purchased in its current condition. By signing the bill of sale, the buyer is accepting the asset in its current state.
How to fill out a Personal Property Bill of Sale
Enter the state where the transaction is taking place.
Enter the amount of property for sale.
Enter the county where the transaction is taking place.
Enter the date of the transaction.
Enter the price of the property inclusive of all sales taxes.
Enter the name of the seller and his or her address.
Enter the name of the buyer and his or her address.
Enter the property being sold.
Enter the mode of payment. You may enter cash or check.
This states that the seller hereby grants and transfers full ownership of the personal property to the buyer. The personal property at the time of sale is free from all encumbrances, taxes, fees, and liens; and that the seller defends and is held fully responsible for such lawful claims and demands with respect to the personal property if any.
‘As Is’ Condition
This states that the personal property is being sold as ‘AS IS’ and the seller expressly disclaims all warranties, whether expressed or implied, including but not limited to, any implied warranty of merchantability or fitness for a particular purpose. The seller disclaims all warranties as to the condition of or working order of the personal property. The seller does not assume, or authorize any other person to assume on behalf of the seller, any liability in connection with the sale of the personal property.
This states that any warranty as to the condition of the property is expressly disclaimed by the seller.
This states that the seller’s above disclaimer of warranties does not, in any way affect the terms of any applicable warranties from the manufacturer of the personal property.
This states that in the event of any dispute between the parties hereto should result in litigation or arbitration, the prevailing party shall be reimbursed for all reasonable costs in connection therewith, including, but not limited to, reasonable attorney’s fees and defense cost. In no event shall either party be liable for incidental, consequential, indirect, or special damages of any kind, including but not limited to loss of profits.
Successors and Assigns
This states that the terms of the Bill of Sale shall bind and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.
This states that the buyer accepts the personal property in its existing condition given that the buyer has either inspected the personal property or was given the opportunity to inspect the personal property but chose not to inspect it.
Enter the state to determine the laws that will be applied to the Bill of Sale.
Enter the date the parties executed the Bill of Sale.
Enter the signature of the seller.
Enter the signature of the buyer.
Can a Personal Property Bill of Sale be handwritten?
The bill of sale can be handwritten if your state does not provide a bill of sale form. The document is considered valid as long as the document includes all of the necessary parts of a bill of sale and is signed by both parties and a notary.
Reminders in writing your Personal Property Bill of Sale
- Make sure that the bill of sale is legible.
- Double-check all information and signatures on the bill of sale. Make sure that all properties being sold are stated with an accurate price.
- Make copies of the bill of sale for the buyer and the seller.