Most businesses need some type of equipment to carry on their activity, and at some point, they will have to sell it and buy a new one. Buying used equipment can be beneficial for both parties.
The buyer can get a working piece of equipment at a reasonable price, while the seller recovers at least a small part of the initial investment, and they can buy a new or an updated one.
In all these cases, people use an equipment bill of sale. it testifies to the transaction. A bill of sale for equipment proves that the ownership has passed to the buyer in exchange for the price they had set. It also shows that the buyer agrees to buy the machine as it is.
What Is an Equipment Bill of Sale?
Since there are so many types of equipment, the equipment bill of sale was conceived as a comprehensive document. That way, it can be generally used. Whenever the buyer or the seller requests this document, they get written proof of the terms of the transaction.
The equipment is described in detail, and the price and date of payment are also mentioned; that way, they avoid future misunderstandings. The buyer can also use the bill of sale for equipment to add the piece of equipment to their inventory.
To get an idea of how versatile this document is, here are a few examples of types of equipment that can be sold using an equipment bill of sale:
- Office equipment, like printers, computers, laptops, projectors.
- Kitchen equipment, especially for professional kitchens: specialty cookware, professional knives, appliances.
- Entertainment equipment for sound & lights systems, musical instruments, and even stages for events.
- General and home-use equipment, mainly machinery and tools used to maintain the yard and garden, like lawnmowers, snowblowers, and all types of tools.
Apart from those, the heavy equipment bill of sale and farm equipment bill of sale are also quite frequently used.
What Is the Essential Information in an Equipment Bill of Sale?
The equipment’s serial number is probably the most crucial piece of information in the equipment bill of sale. That’s why it’s vital to ask the seller to give you the number before the transaction, so you can check with the manufacturer and see if it’s an original item.
This is essential when you are dealing with valuable equipment; you will be paying quite a lot even if it is a used item, so you must make sure it’s legit. Apart from that, you must make sure the equipment is in good condition and is running well before closing the deal.
If the piece of equipment you intend to buy is expensive, you should even consider hiring a professional to make a thorough inspection and make sure it’s worth buying. Since the bill of sale for equipment is a general form, it has the same sections as most bills of sale.
However, it’s still preferable to create it using an equipment bill of sale template, to make sure it’s complete. These are the elements any bill of sale equipment pdf should include:
- Name and address of the buyer and seller.
- The price.
- The description of the equipment including make, model, year, serial number, reading (for example, odometer) if applicable.
- Payment date and method.
- A mention that the equipment is sold in its current state, without any warranties.
- The date, and names and signatures of all parties involved, including witnesses.
Apart from issuing an efficient equipment bill of sale, you may also consider making the payment as safely as possible. When you buy new equipment, you are dealing with authorized dealers, so there’s no need to worry about the payment.
But when you find the machine on a website, for example, it’s better to meet in person, inspect the item, and pay cash, to avoid any problems or fraud attempts.
The equipment bill of sale is a heavily used document, as many businesses are looking to buy or sell used equipment that’s still functioning well.
From the farm equipment bill of sale form to the lawn mower bill of sale, they all have to be carefully drafted to avoid misunderstandings and future conflicts. The ownership has to be clearly stated, as well as the serial number and the price.
To make sure your document is well-written, use the equipment bill of sale template created by CocoSign to make your business operate much easier.
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