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Bill Of Sale

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

bill of sale

When drafting even a simple bill of sale, make sure it complies with your state requirements, which will vary by state. For example, some states require only the buyer to sign the document, while others require both the buyer and the seller to sign the document. Still, other states require that the form be notarized.

A quitclaim bill of sale is similar to a quitclaim deed: It transfers ownership of property from one party to another. It is used when the seller can't guarantee that they own the property and have the right to transfer it, or when the seller doesn't want to warrant title, which leaves the buyer no legal recourse if problems arise in the future.

A bill of sale with warranty, on the other hand, means the seller can guarantee that they own the property and have the right to transfer it, and will protect the buyer from future claims against the property.

A vehicle bill of sale is not required in all states. For example, Illinois and Tennessee don't require an auto bill of sale. Some states require that you use a bill of sale from your state's Department of Motor Vehicles (DMV), while others let you draft your own, so long as it complies with your state's legal requirements.

When drafting a bill of sale form, you need to decide whether you're selling the property as is" or with a warranty. Each provides a different level of protection. If you don't include this provision, it's assumed that you're selling the property as is."

If the bill of sale contains a limited warranty provision, the seller needs to spell out exactly what damage is covered under the warranty and what parts and/or labor are covered during the specified warranty period, especially if the buyer will be responsible for part of the costs.

When drafting a bill of sale form, you must make sure it complies with your state's legal requirements. While there are examples of bills of sale available online and elsewhere, in order to be sure that yours is in compliance, you may want to have an attorney look it over.

A bill of sale is a document that transfers ownership of goods from one person to another. It is used in situations where the former owner transfers possession of the goods to a new owner. Bills of sale may be used in a wide variety of transactions: people can sell their goods, exchange them, give them as gifts or mortgage them to get a loan. They can only be used:

Bills of sale exist at common law quite independently of any legislation. In England and Wales, they are regulated by two Victorian pieces of legislation: the Bills of Sale Act 1878 and the Bills of Sale Act (1878) Amendment Act 1882. This area of the law was subject to review by the Law Commission, which published a proposal for change in 2017.[1]

The term "bill of sale" originally referred to any writing by which an absolute disposition of personalty for value was effected or evidenced. A common feature of such dispositions is that the owner mortgagor remains in possession and exercises all the attendant rights of ownership, which may be so overwhelming as to induce a third party to accept the same chattel as a security for a grant, albeit without notice of the first mortgagee. This scenario made the bill of sale a veritable tool of fraud.

The evolution of various bills of sale laws, within the US, was to curb the use of the bill of sale as a means of defrauding innocent persons. The first of such being the Bills of Sale Act 1854 which was repealed and re-enacted by the Bills of Sale Act 1878 which was almost on all fours with the 1854 act. Further developments led to the enactment of the Bills of Sale Act 1882.

A bill of sale has been defined as a legal document made by the seller to a purchaser, reporting that on a specific date at a specific locality and for a particular sum of money or other value received, the seller sold to the purchaser a specific item of personal property, or parcel of real property of which he had lawful possession . The Black's Law Dictionary on its part defines a bill of sale as "an instrument for the conveyance of title to personal property, absolutely or by way of security". According to Omotola the bill of sale is "a form of legal mortgage of chattels". Bullen and Leake and Jacobs define a bill of sale as "a document transferring a proprietary interest in personal chattels from one individual (the "grantor") to another (the "grantee"), without possession being delivered to the grantee".

In essence, a bill of sale is a written instrument showing the voluntary transfer of a right or interest or title to personal property, either by way of security or absolutely, from one person to another without the actual physical possession of the property leaving the owner and being delivered to the other party. It is clear from the definitions above that the bills of sale are essentially of two types: The absolute bill of sale and the conditional bill of sale.[2]

Absolute bills of sale, which do not represent any form of security whatsoever, are simply documents evidencing assignments, transfers and other assurances of personal chattels, which are substantially no more than mere contracts of sale of goods covered by the common law of contract and the sale of goods law.

The conditional bill of sale refers to any assignment or transfer of personal chattels to a person by way of security for the payment of money. The conditional bill of sale creates a security in favour of the grantee of the bill whereby the grantee is given personal right of seizure giving right to a security interest of a possessory nature.

An example of a conditional bill of sale can be found where a creditor gives a loan and has transferred to himself, as collateral or security for the loan, the title of the goods or other personal property of the debtor. The physical goods or other property however remains with the debtor.

Bills of sale have existed at common law since at least the Middle Ages, when they were most commonly used commercially in the shipping industry. As the general population began to own more personal goods in the Victorian era, bills of sale came to be used as a form of consumer credit. Lenders would extend credit on the security of:

Most often, people would grant bills of sale over their goods as security for a loan. Borrowers would transfer ownership of their goods to the lender, while retaining possession of them when making repayments. When the loan was repaid, the borrower would regain ownership. Bills of sale used in this way are known as "security bills".

Sometimes, bills of sale would transfer ownership outright, such as when a person sold their goods to another while retaining possession. Bills of sale used for purposes other than borrowing money are known as "absolute bills".

The increased use of bills of sale in the Victorian era created a "false wealth" problem. Potential purchasers and other lenders could be misled into thinking that the person in possession of goods still owned them. The person in possession could sell the goods or use them to secure another loan. In both cases, the transaction was fraudulent, but the purchaser or lender had no way of discovering that the goods were already subject to a bill of sale.

As a result, Parliament passed the Bills of Sale Act 1878. This largely replicated the provisions of an earlier Bills of Sale Act 1854. It requires all bills of sale to be registered at the High Court so that interested third parties could check whether the person in possession has already transferred away ownership of goods.[1]

The Bills of Sale Act (1878) Amendment Act 1882 had a different purpose. The 1878 Act led to a rise in the use of security bills. Concerns were expressed that such transactions could lead "thousands of honest and respectable people to their ruin".[4] Parliament noted that:

Both the 1878 Act and the 1882 Act remain in force today. Absolute bills are regulated only by the 1878 Act. Security bills are regulated by the 1882 Act and the 1878 Act, to the extent that its provisions are consistent with those of the 1882 Act.

If you wish to have a record of the sale, you may also complete the Instructions for Selling a Vehicle form MV2928. The Bill of Sale is provided for your convenience, it is not a required form. You may keep a copy with your records, and make a copy for the buyer as documentation of the sale.

If you lost your title, you don't need a replacement title to junk the vehicle. You can show the certificate of vehicle registration or Confirmation of Ownership as proof you own the vehicle, and sign a junk bill of sale.

Pursuant to Saf-C 3202.03, each applicant for a private or commercial vessel registration shall a complete Boat Registration Form, along with a bill of sale or other proof of ownership. A bill of sale for a vessel must include the following information:

TPWD is required by law to collect tax for vessels/boats (115 feet or less in length) and outboard motors purchased in Texas or brought into Texas on or after January 1, 2000. The tax rate is 6.25% of the sales price. Tax is assessed at the time of registration/title transfer and is due within 45 working days from the date of sale or date brought to Texas. Applications filed later than 45 working days are subject to tax penalties and interest. 041b061a72


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