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A bill of sale is a legal document that is used to transfer ownership of an item from a seller to a buyer.

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The Ultimate Guide to Selling Your Car

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Bill of sale: What Is It?

A bill of sale includes relevant information such as contact information, descriptions of the items, payment methods, and warranties.

The bill of sale proves the owner of a given item. This can be used in a court of law to demonstrate ownership for items such as vehicles, boats, motorcycles, and many more items.

Bill of sale benefits

A legally binding bill of sale makes the lives of both buyers and sellers substantially easier.

Benefits for sellers:

Ease of tax reporting
"As-is" protection
Date of ownership transfer

Benefits for buyers:

Proof of ownership
Date of ownership transfer
Warranty information

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What Is A Bill of Sale?

A bill of sale is a document used in the transfer of an item's ownership from the person selling it (the Seller) to the person purchasing it (the Buyer). It is a legally binding document, often used in a court of law as proof of an item's ownership . It contains all pertinent information regarding the sale, including contact information for Buyer and Seller, warranty information (if applicable), and the date that ownership is transferred. Day-to-day Bills of Sales comes in many forms; a bill of sale can be as minor as a receipt for a pack of gum or as major as a record of a large, and expensive purchase, such a boat or a car.

From a legal perspective, a free bill of sale form makes the lives of both buyer and seller. To make your life easier still, FormSwift has devised a bill of sale template that lets you draw up a free bill of sale form in just a few minutes. Below we have outlined the major components of a bill of sale form.

Property Location - This section of the bill of sale form specifies the location of the item being sold. Typically this includes only general location information: city, county, state, etc. Our bill of sale template also includes a brief description of the item being sold.

Seller(s) - This section includes the main seller's contact information, including his or her full name and address. It is also where any additional sellers are noted.

Buyer(s) - This section provides the contact information of the buyer. It also lists information about any additional buyers.

Price - This lists the total price the buyer will pay for the property in question. Typically subtotals are not itemized on a bill of sale.

Form of Payment - This specifies what payment method the buyer will use. Options include cash, personal check, certified check, money order, etc.

Sales Tax - This section specifies how sales tax will affect the price. It is either included in the prices or added to the price.

Property - This includes the date of property transfer. It also specifies whether the item is being sold "as is" or under warranty. If the item is being sold "as is," the bill of sale states that the buyer has had the opportunity to inspect and approve the item's condition.

Witness Information - This section is only pertinent if a witness will be present to sign the bill of sale. It includes the witness' full name, address and other contact information . The witness can either be a public notary or a party agreed upon by the Buyer and Seller.

Legal Considerations of a Bill of Sale Form

In the world of legal documents, the bill of sale resides somewhere between a simple cash register receipt and a formalized title or deed. The bill of sale represents a record that a seller has sold an item of possession to a buyer. This legal document is usually drafted by the seller, and it signifies a record of the sale. The bill of sale form will include the details of the transaction, and although it will typically be signed by the seller, it is not have the legal force of a title or deed. Bills of sale do not prove ownership; rather, they only show that a transfer of ownership occurred. Nonetheless, the bill of sale can prove useful as evidence that the transaction did indeed take place. It can also be helpful if there is a dispute as to the details or conditions of the transaction. From the buyer's point of view, a bill of sale is a good way to get the specifics of a sale in writing before a monetary exchange is made. For the seller's perspective, a bill of sale can be helpful in maintaining records for accounting purposes.

While it is true that a bill of sale form is a fairly simple document compared to other legal documents , it still has legal force and should be taken seriously. As with any legal document, it is never a good idea to sign it without reading and understanding all parts of the document, including the fine print. This is especially true for the buyer, as it is usually the seller who has composed the bill of sale (or hired someone else to compose it). Therefore, while both the buyer and the seller must consider the terms of the sale very carefully, it is especially important for the buyer to understand the legal considerations of the bill of sale.

One thing to know is that a bill of sale template acts much like a contract, meaning that if written and executed properly, it is legally binding to all signers of the document. For that reason, it is imperative that buyers and sellers not only read the bill of sale form carefully, but also ascertain that all of the information is accurate and complete. Inaccurate information, such as an overstated sale price or a misrepresentation of the property being sold, can cause legal difficulties; incomplete information can cause problems too, which is why a properly drafted bill of sale form should include as much information as possible about the item(s) being sold and the terms of the sale.

It is also important to realize that the seller must have full rights to sell the property listed on the bill of sale form; otherwise, there could be serious legal repercussions for the seller. Hence, it is advisable for the buyer to request that the seller produce documentation showing that he or she has full ownership rights to the item(s) being sold. If this documentation cannot be produced upon request, the buyer should be hesitant to sign a bill of sale.

To better understand the legal aspects surrounding a bill of sale, it is instructive to go online and search for a sample bill of sale. Search engines such as Google, Bing, and Yahoo are quite helpful and will yield an array of samples; look at the legal language used in these forms and take note of their common terms and elements. You can even add the word "free" to your search for a sample bill of sale, as that will enable you to search for a free bill of sale form. You might be pleasantly surprised to discover that there are free bill of sale forms available online, but be sure to verify the quality of any legal form if you actually intend to use it. Alternatively, many people are looking to sell items on behalf of charities at auction events. If you are are seeking donations for a charitable item, you should look into procuring a donation request letter. With this letter, as opposed to a bill of a sale, you can ask for contributions to your charitable cause while conducting an auction for a non-profit of your choice.

Nonetheless, using a bill of sale form is an excellent way to protect the legal rights of buyers and sellers. Understanding the legal issues pertaining to bills of sale is an essential step in keeping all parties satisfied with the transaction.

What Are the Parts of a Bill of Sale Template?

When buying or selling property, a bill of sale template is a great way to certify that the transaction is being made. It is also a means of legally documenting the details of the transfer of property, as it will typically contain extensive information on the transferred item(s) along with the contact information of the buyer and seller. Furthermore, a bill of sale is a relatively simple form that could even be found through an Internet search engine. You do not need to be an attorney to create a bill of sale, and if you can locate a free bill of sale template online, you might spare yourself the expense of hiring an attorney or legal expert.

On the other hand, it is not a smart idea to choose a free bill of sale template at random . If you're going to create a bill of sale, you should at least be familiar with the parts of such a document. After all, this is a legally binding document that could cause a great deal of problems if the essential parts aren't all there. So, let's take a look at some of the parts that you should expect to see in a bill of sale template.

For one thing, if all of the basics aren't there, then you don't have a usable bill of sale template. Even if it's free of charge, avoid any template that doesn't indicate a place to write or type the names of the buyer and seller, along with their addresses and telephone numbers. If also there's a place in the template to include e-mail addresses, that's even better. Next, check to see if there is a section where the seller and/or buyer can indicate the details of the property that is to be transferred. There should be sufficient room in this section to leave highly detailed information about the property and the condition it's in at the time of purchase. Keep in mind that if more than one item is encompassed within the transaction, it may be necessary to itemize or list the particular items separately. If this is the case in your situation, the bill of sale template that you choose should allow for this.

The next thing to remember is that your bill of sale template must specify the financial details of the transaction. Upon viewing the form, one should easily be able to tell how much the property was sold for and when it was sold. If there is sales tax involved, this should be noted as well; moreover, the method of payment (such as cash) should be clearly indicated in the template. Any bill of sale template, free or otherwise, ought to include these elements.

Don't be surprised if a bill of sale template includes an "as is" clause. This clause will stipulate that the transferred property has been inspected by the purchaser and that the seller disclaims any warranty as to the condition of the property. Thus, the free bill of sale form will affirm that the purchaser is knowingly buying the property in its existing condition at the point of sale. This is perfectly normal and should not cause any alarm if it is included in a bill of sale template.

Finally, any template should have a place for at least three signatures: the buyer(s), the seller(s), and at least one witness or notary. The bill of sale, if written properly, will have places for printed names, signatures, and dates at the bottom of the form. After you get to the bottom of the document, double-check it to make sure that it looks professional and is free of spelling and grammatical errors. If your bill of sale template passes muster, you'll have a reusable legal document that can give you peace of mind anytime you're buying or selling a tangible piece of property.

The Ultimate Guide to Selling Your Car

By FormSwift Editorial Team

March 21, 2018

Planning to sell your car? Confused about how to do so? Want to make sure you get maximum value in your sale? Follow our step by step guide to help make sure you get the highest price possible, ensure you complete the process properly when selling your vehicle.

Step 1: Determine the value of your car

The first step in selling your car is to figure out how much your car is worth. There are many online resources that can easily help you do so, like this one here: https://www.autotrader.com/car-values/

Once you have a sense of what your car is worth, you’re ready to move on to step 2. If your car is worth less than you’d hoped for, consider trading it into a car dealership. You may be able to get more value for your car if offloading it is part of the purchase of a new or used vehicle.

Step 2: Gather the appropriate documents

Note: each state has its own laws regarding auto sales. Be sure to familiarize yourself with your state’s laws. That said, vehicle sales in virtually all states will require the following documents:

Title: Upon completion of the sale, you will sign the vehicle’s title over to the new owner. If the title is held by a bank, be sure to have the bank to sign over the title once the sale is complete.
- If applicable, list on any advertisements for the vehicle that the car has an outstanding balance. The process of transferring the title for a bank-owned car can be more complex. Transparency with any prospective buyer, therefore, will help the sale go smoothly.
- Pro tip: do any and all paperwork regarding the transfer of title at the bank that holds the title. You can also hire an escrow service to hold the title and manage the transferring of funds and title between you and your buyer.
Maintenance Records: You should have records and receipts documenting all of the maintenance and repairs done on the vehicle. Assuming you've properly maintained the vehicle, these records can help you sell the car for the highest possible price because they provide written proof that the car has been properly taken care of.
- If you don’t have maintenance records, you should be able to get copies of the documents from the dealer or mechanic(s) that you’ve used for service.
Bill of sale: This documents the terms and conditions of the sale and can release you of certain liabilities related to the transaction.
Release of liability: This protects you from financial liability for and damages or car-related issues incurred after the sale of the vehicle. See /release-of-liability/
Warranty or “as is” documents: If the car is still under warranty, be sure to include all documents pertaining to the warranty coverage. If the car has no warranty, be sure to include language in the contract that makes it clear that the buyer will assume all responsibility for repairs and damages.

Step 3: Prepare the Car

In order to sell any car, it should be:

Thoroughly clean and presentable for photographs. A cleaner car is a more attractive one to buyers, especially if you are listing it online. Cleaning the car should include:
- Washing and waxing the exterior
- Washing floor mats
- Cleaning tires and rims
- Cleaning ashtrays and any other car compartments
- Washing windows
Up to date on maintenance. Change any old fluids, rotate tires, etc. Be sure to save receipts for all services to show potential buyers. If the car needs new tires or other “wear and tear” services you can either have the work done ahead of time in hopes of a higher sale price or inform potential buyers of the needed repairs before agreeing to a sale.
Photographed: Take pictures, lots of picture. You should have multiple shots from different angles of the exterior, interior, wheels and engine. Even if you end up not including all photos in advertisements, it is a good idea to have extra photos to show potential buyers upon request.

Step 4: Advertising Your Car

Make a game plan regarding where you want to advertise your vehicle. Advertisements to consider include websites, flyers, newspapers, social networks, word of mouth, and for sale signs in the car’s window.

Any for sale sign should include your phone number and the vehicle’s asking price. Reputable internet sites include: Ebay motors, Cars.com, Autotrader.com, Kelley blue book, or Craigslist -- see our Craigslist Guide at the end of this guide for tips on protecting yourself from fraud should you choose this method of selling.

Advertisements for the vehicle, in any venue, should include the following:

Description of the seller and reason for selling
Seller profile picture (optional)
Asking price--be sure to also indicate if the price is firm or if you are willing to negotiate (i.e. “or best offer”)
Mileage
Condition of the vehicle
Vehicle history (accidents, damage, etc.)
Modifications, upgrades, or repairs, if applicable
VIN number--this helps potential buyers order a vehicle history report, if desired.
Number of owners
Photographs

Step 5: Interacting with Potential Buyers

In general, buying and selling a car on your own is a safe process. However, it is best to err on the side of caution when dealing with strangers. Therefore, we recommend the following guidelines for interacting with potential buyers:

Answer questions from interested parties by email or phone
Only set up test drives with serious buyers
Look out for fraud
Require any interested buyer’s full name
Clearly identify which forms of payment you will accept checks and money orders come with more risk than cash, PayPal, etc.
Determine if potential buyers live in your area. This makes payment and arranging for test drives easier.

Tips for arranging test-drives:

Pick a safe, central location in a public place during the day
Ask to see potential buyer’s license
Accompany interested buyers on the test drive
Consider asking a friend or family member to attend as well, if possible.

Step 6: Negotiating the sale

Assuming you are willing to negotiate the price, here are some tips for negotiating the highest price:

Don’t be afraid to make a counter offer in response to the buyer’s initial offer.
Decide beforehand the lowest price you are willing to accept and stick to it
Consider negotiating price before meeting at the seller’s bank or credit union to finalize sale.

Step 7: Finalizing the sale

Here are some things to remember as you finalize the deal. If you agree to accept a cashier's check, be sure to accompany the buyer to their bank to get your money. After receiving payment, make sure to do the following:

Complete the bill of sale
Sign over the title
Get a release of liability signed and submit to DMV (if required)
Provide maintenance record copies (be sure to black out personal info)
Include any additional paperwork required by your state
Hand over keys and copies

The Craigslist Guide: Protecting Yourself From Fraud

Craigslist is a very popular site for buyer and selling used cars. With that in mind, for those of you considering listing your car on Craigslist, here are some tips to make sure you avoid scams:

Before Listing:

Location matters: if you live in a major metropolitan area, your local Craigslist site has exponentially more listings than those in smaller towns. Therefore, if you live in a big city, your post may be pushed below others as newer listings are entered.
Use multiple keywords: to avoid having your listing lost in the heap of other listings, use as many helpful keywords as possible. This will ensure that potential buyers have multiple opportunities to find your listing.

When Listing:

Set up a new email address strictly for the listing: this will help protect your privacy and ensure that your personal or work email isn’t bombarded with inquiries. Furthermore, junk mailers can scrape email addresses off Craigslist. Using your personal or work email, therefore, leaves you vulnerable to unwanted spamming.
Phone call protocol: If buyers ask to speak with you about your listing over the phone, be sure to use a site like Numbr, which provides a disposable phone number you can safely post on craigslist to maintain your privacy.
Price your car appropriately: the lower the price, the more interest you will generate. In fact, choosing a lower list price is more likely to generate interest from multiple buyers which increases your chances at receiving your full asking price.
Screen buyers over the phone: You shouldn’t feel obligated to oblige every single test-drive request. Doing so is a waste your time. Therefore, compile a list of questions to ask buyers over the phone that will give you an idea whether or not they are seriously interested in the vehicle.
Research postings for similar vehicles: This will give you a sense of what the market looks like for a vehicle like yours and help you determine the appropriate price for your listing. It will also give you an idea about how to craft and price your listing to give yourself a competitive advantage.
Timing: If your availability for test drives is limited, consider including specifics about the dates and times you are available (e.g. “please message me and schedule a test drive before x date. I am available between x and y pm)
Don’t waste your time: don’t bother with inquiries that don’t seem serious or rude in any way. You should have a good sense of the level of interest of the prospective buyer within the first few sentences.

During meetings:

Always choose a safe meeting place: Make sure the place is public and try to only meet during the day. You should also choose a location safely away from your residence so there’s no chance a potential buyer knows where you live. Parking lots near municipal buildings or police station, or near a public strip mall make great potential meeting locations.
Bring Documents to Meetings: For example, if your asking price is lower than the Kelley Blue Book value, consider bringing a printout of their price estimate so your buyer knows they are getting a good price. You should also bring all other documents listed above. If the buyer wants to buy the vehicle during the meeting, have them sign the papers and give you a $100 deposit.
Payment: Because of the risk of scammers, cash is king with Craigslist.

Closing the Deal:

Close quickly: If your buyer needs to visit their bank to withdraw the requisite cash for the deal, accompany them, if possible. If not, make sure you record all of the appropriate bank information and contact a bank employee to provide further information.
Close at the DMV: bring all of the necessary paperwork, keys, screwdriver*, etc. Make sure the buyer bring their license, cashiers check, proof of insurance, and a check to cover sales tax and registration fees
- *Use the screwdriver to remove license plates while the buyer files forms with the clerk and obtains temporary plates.

Post Sale:

Be sure to close the listing on Craigslist in order to avoid further inquiries about the vehicle.

Selling your car out of state

If you sell your car to someone out of state, make sure you take care of the following:

Inspection: Schedule a car inspection. If you and the buyer arrange to have the car delivered to them, ask them to arrange a remote inspection whereby a mechanic will inspect the car on their behalf. Some states require inspection before a vehicle can be registered, others do not. Regardless, this is the buyer’s responsibility, not yours.
Payment: Cash is always best. If banks are open, ask the buyer to go to a bank and withdraw the requisite cash for the sale. If this is not possible, a cashier’s check or money order (made out to you, of course) is your next best option.
Paperwork: Documentation guidelines vary for each state. Therefore, make sure you know what forms and documents you need for your state and that of the buyer. Determine if your state requires the buyer to obtain a temporary registration and transfer tags before they drive the car out of state. If temporary registration is required, you can take care of this process at the DMV.

Selling your car doesn’t have to be an overwhelming or stressful process. By following the tips set forth in this guide, you can set yourself up for an easy and successful vehicle sale.

The Best and Worst States to Buy a Used Car

March 21, 2018

Methodology:

Our team at FormSwift wanted to determine the best and worst states to buy a used car. To do so, we evenly weighted the following factors into a final score out of a 100 point baseline for each state, which represented how much an individual would pay in associated fees - monthly car insurance rates, average gas prices, and dealer documentation fees. States with lower totals ranked better than states with higher totals. The datagraphic below shows states from best to worst.

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Bill of Sale

A bill of sale records important information about the exchange of personal property. It will give information about the buyer, the seller, and the property that is being sold.

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Vehicle Bill of Sale

A Vehicle Bill of Sale is a legal document evidencing the detail of exchanged ownership of a vehicle. It establishes an 'as is' assumption that the buyer accepts the purchase in its current condition. The bill details names and addresses of buyer and seller, date of sale, price, vehicle registration and other details.

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Boat Bill of Sale

If you're buying or selling a boat, you need a boat bill of sale. This document displays information about the buyer, the seller, and important information about the boat that is being sold.

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Lease Agreement

A lease agreement establishes the terms and conditions for borrowing or rental of property, be it real estate, equipment or other asset. It details the parties, the leased property, duration of the lease, expectations, rights and obligations of both parties. When signed it is legally enforceable.

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