5 Common Legal Forms Every Small Business Needs

5 Common Legal Forms Every Small Business Needs

A Bill of Sale is a legal document used to record the transfer of ownership from a seller to a buyer. It's commonly used in the sale of personal property such as vehicles, electronics, or furniture. By providing a written record, this document helps prevent disputes and protects both parties involved.

Why You Need One

While verbal agreements may feel sufficient, they rarely hold up in a dispute. A Bill of Sale:

• Serves as proof of ownership transfer
• Helps verify transaction details such as date and amount
• Can be required for title and registration, especially for vehicles
• Protects both buyer and seller from future liability

Best Practices

When creating or using a Bill of Sale, consider the following best practices:

• Be clear and specific about what is being sold.
• Include accurate contact details for both parties.
• Always date the document and keep a signed copy.
• Add a witness or notary signature if required by your state or for high-value items.

Things to Include

Here are some essential elements to list:

• Item description (make, model, serial number if applicable)
• Purchase price
• Date of sale
• Names and addresses of buyer and seller
• Terms and conditions, such as "sold as-is"