A Notarized Bill of Sale Form is a document witnessed by a notary public and completed by an individual who is presently in possession of some personal property and wishes to transfer that property to another individual.
A notarized bill of sale form contains information about the seller, seller’s signature, buyer’s signature, and any other relevant details such as a description of item(s) being sold the purchase price, and the date of sale.
The purpose of the notarized bill of sale form is to provide a legal record that supports the transfer of personal property from the seller to the Buyer. The document ensures that the seller has legally transferred ownership of the property to the buyer.
If a sale is conducted without a notarized bill of sale form, no legal record supports the transfer of personal property. If the transaction is contested in court, for example, the person who has possession of the item can maintain that he or she acquired it legally through an exchange.
When the Notarized Bill of Sale Form is Used
A notarized bill of sale is used in various situations.
Some of the common situations where a notarized bill of sale form is used include:
- Transfer of a vehicle from the seller to the buyer
- Sale of an item by a business entity to another party or
- Transferring personal property to another individual as part of a gift.
- Transferring personal property to another individual in a legal settlement.
In all these instances, the seller or transferor may be required by state law to provide the buyer or transferee with a notarized bill of sale form. It is illegal in some states to buy or sell an item without providing a bill of sale for that item. Others require that a bill of sale form be filled out and signed by the parties involved in a transfer.
In all cases, when providing a notarized bill of sale form, the transferor must provide to the transferee or buyer an accurate description of each item sold along with its value at that time of sale.
Significance of Notarized Bill of Sale Form
There are several reasons why a notarized bill of sale form is significant for both parties involved; the seller and the buyer.
These are :
Protection against fraudulent sales
The notarized bill of sale form protects the seller and the Buyer against fraudulent transactions/sale or sale of stolen property. Both parties need to have a document wherein they will be stating their rights and responsibilities during a sale.
Signing the bill of sale form in the presence of a public notary provides additional confirmation and affirmation of the transaction’s authenticity and mitigates any misconduct or fraud.
Assurance that both parties consent to the terms
A public notary also verifies the identity of the seller and buyer during the signing of a bill of sale. Both parties must present their original photo identification before the public notary giving both parties some assurance when doing the transaction. The presence of a notary public also acts as an assurance that both parties are legally capable and competent enough to enter a transaction.
It is also expected of a notary public to assure that both parties have the mental capacity to finalize the transfer/transaction and are signing under their own free will without any compulsion or constraint.
Proper completion of forms and endorsements
A notary can help guide both parties on filling the forms, thereby ensuring that the forms are correctly completed. The notary may also break down any information that is unclear to both the buyer and the seller. Once the parties have completed the form and signed it, the notary would go through it, endorse it and attach their official seal to show that they acknowledge the document and its contents.
Required for certain private sales
A notarized bill of sale form, although not a requirement in some states for specific purchases, some states may require that certain purchases such as those of vehicles, planes, firearms, and heavy machinery only be completed after a bill of sale has been notarized. Therefore, it is important to ensure that you check with your state’s requirements to stay up to date with the laws set when selling any item.
Required to transfer titles and registration
A notarized bill of sale form is required when transferring titles and processing registrations. It is important to note that the transfer of ownership is not always finalized with the physical exchange of the items in question. Some purchases require other paperwork to be completed.
Note: In some states, the processing of paperwork for the transfer of ownership may not be commenced without an official certificate of authority or an official seal/stamp from a public notary showing that due process has been followed to ensure that the sale or transfer of ownership is legit and that both parties consent to the transfer.
Where can the Bill of Sale Form be Notarized?
There are certain places where the notarization of a bill of sale form is done properly.
The bill of sale form can be notarized at the following types of locations:
- Notary public offices: Any office with a Notary Public commissioned by the government to perform official acts.
- Notarize.com: This website does not charge for notarization, but it is the responsibility of the parties to pay their fees (usually $10-$25 per document).
- Bank branch: Any bank branch with a notary public commissioned by the government to perform official acts. Many banks now have free notary services, and their hours may be limited.
- Ups store: A UPS store that possesses a notary license to perform official acts.
- 123notary.com: This is a free service and does not charge for this, but it is your responsibility to pay any fees the banks or UPS store may charge.
Key Elements of Notarized Bill of Sale Form
A notarized bill of sale form is an important document that may come in handy, especially if an issue arises after the sale leading to litigations. The bill of sale form may be presented to the court as evidence showing the transfer was completed and duly witnessed by a public notary. To ensure that the document becomes admissible to court, there are some key elements that must be appropriately captured in the bill of sale form.
The bill of sale document must contain the name and address of the seller. This information is usually included first to establish whom the item is from and their official address. It is important to provide other information to help identify the seller, such as their national identification number or attach a copy of their photo Id with the bill of sale form.
The price in the dollar amount of the item being sold should be included in the bill of sale form. It is recommended to write the amount in words and figures to ensure that no alterations can be made once the document has been signed.
The person to whom the item is being transferred should be mentioned in the bill of sale form. In addition, their name, address, and other identifying information such as their identification number should be included in the form.
Details of the item being sold
The bill of sale form should contain detailed information on the item being sold. If it is a physical item, then the name, color, size, weight, and other identifying information such as the serial number, defects, identifying marks, etc., should be included.
Consequently, if a company or a service is being transferred, a comprehensive description of the service or company should be included in the bill of sale form.
Verification of the form in notary public’s presence
Both the Buyer and the seller must verify the form and its contents in the presence of a notary public and confirm that they consent to the transfer of ownership of the item(s) in question. The parties involved can also endorse by signing the document, print and dating the document under the instructions of the notary public.
Details enlisted by the notary official
After both parties have agreed to the transfer of ownership and signed the document, the notary official must complete the final portion of the form by including the information as required by their state’s laws.
This information includes:
- County of license
- Notary’s printed name
- Seller’s printed name
- Notary’s commission expiration date
- Affixed notary seal
Following are some free downloadable notarized bill of sale templates for you:
A notarized bill of sale form is an important document that shows the acknowledgment of ownership from the seller to the Buyer. The form must be duly filled and its contents verified by both parties to ensure they understand and approve the transfer.
Although different countries have different laws regarding the sale or purchase of different items, it is important always to involve a notary public whenever you are selling or buying an item that required additional paperwork or registration.