A general bill of sale is a legal document that acts as evidence of the purchase of a property from one individual to another. This document is majorly used in the sale of private property. It is a way of changing the ownership of the property. In so doing, the legal binding between the seller and the buyer becomes the general bill of sale. In some cases, it might be considered as a sales receipt.
Reason to use a bill of sale
The primary purpose of using a bill of sale is to transfer the legal ownership of a property. The buyer gets the document as proof that he or she has paid the amount needed by the seller and has now owned the property. He or she can now start using the property in question publicly. In case of property, which comes along with legal documents like the title deed, the buyer can now have all other documents related to the property.
For the seller, a general bill of sale separates him or her from the property. In other words, he or she can now not be linked to any legal issue facing the property. For instance, if the buyer starts the construction of anything in the property which needs legal involvement, it is now not the seller that will be contacted in case of legal irregularities.
What to include in the general bill of sale
- Identification details: There has to be the name and other identification details of both the seller and the buyer. It helps in showing the direction of the property in terms of who is its current and initial owner. The names given should be the official ones.
- Description of the property: The property sold also has to be described fully in the best knowledge of the seller. The buyer has the right to confirm the description details as well. The description has to be as the property is currently.
- The total amount being paid: This document is for sales, and so there has to be a money figure. The entire amount being paid must be included. Take note that a general bill of sale is only given on full payment for the cost of the property.
- Date: The date of purchase is also included in the document to show when the property ownership was exchanged.
- Signatures: Both the buyer and the seller should go ahead and place the signatures as a seal for their agreement
- AS-IS: This is a clause that states that the property is being sold as it is currently and with no warranty. This means that the buyer has no obligation of improving the property once it has been sold regardless of its faults.
Transactions that require a general bill of sale
Several transactions might need this document. Remember, this is a document given for the purchase of private property, which is done in the presence of witnesses. Here are some of the transactions that might need a bill of sale:
The sale of artwork, car, land, house, assignment of the contract, livestock, business, stock, and many more.
Free bill of sale forms
It is essential that whenever you are engaging in the sale or purchase of private property, you should always have this document signed. The seller has to bring along such a report. You can download an editable template to use in such a case. This should be done after confirming the actual owner of the property.