Robust selling and purchasing are not as secure as it seems to be. The exchange of goods with cash or any other compatible item needs a careful procedure to follow. It is so, to avoid any intentional corruption.
Therefore, it is wise for any trading to use a specific or general bill of sale form for any trading. This is the sort of receipt that carries buyer and seller information along with a brief description of the item intended to be sold.
What Is a General Bill of Sale?
Usually, the general bill of sale is used when any exchange of valuable items is taking place. Specifically, it is best to use in the trading of expensive second-hand assets.
It holds not only relevant information of seller and buyer but also terms and conditions (if any). It states the terms on which both parties agreed upon. And this requires a legal signature from both parties to avoid any future conflict and contradictions.
Besides this, traders can use the general bill of sale for any item they feel is valuable and needs protection. It can be used from pets to jewelry to vehicles, etc.
Why Use a General Bill of Sale?
The sole purpose of using the general bill of sale is to assure that whatever item you are purchasing is entirely secure. In other words, it protects you against fake claims, suspicion, and other corruptive interferences.
It shields your dignity, either you are a buyer or seller. Therefore, both parties should hold a copy of the General Bill of Sale and show upon legal inquiry. Elaborately, it helps you to purchase any stolen or dysfunctional item.
Moreover, it helps in crystal clear recording of transactions securing the ownership of your new asset. Similarly, for sellers, it benefits by securing their cash transactions legally. Hence, help to fall into any fraudulence.
What Kind of Transactions Requires a General Bill of Sale?
Any item which upon selling gives you a hefty amount of finance requires a general bill of sale. It includes:
- Jewelry items.
- Any valuable antique piece.
- Expensive animals like a horse, dog , or any other pet of royal breed.
- Electronic appliances like TV, Laptop, vacuums, etc.
- Household stuff can include a metallic dinner set, exported rug, and leather or skin items such as the tiger's skin.
- Motor vehicles, tractors, cars, motorcycles, etc.
What Are the Details in a General Bill of Sale?
A general bill of sale should carry all information that prevents any confusion and dispute between both parties. From date to signature, everything should be crystal clear to benefit both parties. Following are compulsory requirements a worthy one should have:
Information of Both Parties
It should include information on both parties that detects their real identity. It includes name, residence, state, city, driving license number, and both parties' pictures.
Description of Selling Item
There should be a complete record and history attached in this section. Additionally, stating its current physical condition, including its defects. Also, mention relevant information essential to detect its authenticity.
It includes VIN in case of vehicles, caliber (in firearms), and breed in terms of pets. Also, odometer and model number if any of the items have such as boats.
It is essential to mention the complete details of the transaction. It includes:
- The place and time where the transaction of the item will occur.
- The payment method of money if it's based on installment, credit or debit cards, etc.
- If the transaction is an exchange of another item instead of cash.
Terms and Conditions
Mention any specific terms and conditions if any of the parties are applying. For instance, if the trading is based on 'as-is' terms or warranty conditions.
The condition comprises the rule that says the seller is not responsible for any defect if appearing later. Whereas, warranty is the commitment to fulfill any specific loss or defect found in the item. However, a seller should mention what defects will be entertained in terms of cost.
Date of Agreement
It is crucial to mention the exact date of the agreement. It clarifies the transferring of ownership from the former seller to the new buyer. However, in some cases, ownership only occurs after registration in specific county offices like motor vehicles.
Signature of Third Party
It is essential to take a sign of a third party along with the buyer and seller's signature. It confirms the agreement is signed with the mutual understanding of both parties without any pressure.
The general bill of sale is essential to confirm the transfer of ownership of a valuable item from one seller to the buyer. Furthermore, it clears the status of both parties in terms of trading the item. It helps in securing one's asset, cash, and legal reputation.
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