What Is an Equipment Bill of Sale?
A bill of sale refers to a legal document that contains information about a transaction, participating sides, and an item being sold. Bills of sale must include personal data about the buyer and seller, such as their names and mailing addresses. It’s also fairly common to specify mobile phone numbers and emails of both participants. An equipment bill of sale must contain a detailed description of the transferred object.
Mind that you aren’t necessarily obliged to use a bill of sale when trading equipment. Regulations vary from one state to another, so it’s strongly suggested to check your local laws on the subject. Whether you need it or not, signing a bill of sale template is a good idea since this document can act as proof of ownership. Bills of sale are also useful for preventing possible legal disputes and resolving existing ones.
Bills of sale can be signed between two parties or with multiple sides involved. For instance, the participants may decide that independent witnesses should be present while signing the deal to guarantee transparency and fair trade. It’s also quite common to invite a public notary, though their presence is not required.
Selling Equipment with a Bill of Sale: A Step-by-Step Guide
- Prepare the machine. Like any other object that you are planning to sell, equipment should be in its best condition before a buyer’s examination. Clean the machine from rust (if any) and make all necessary repairs before selling the piece. It’s also suggested to obtain the equipment’s serial number and gather all documents, including the purchase receipt or previous bill of sale. You’ll need to prove that you are the rightful owner of the asset, so any supporting paper can be useful.
- Let the buyer examine the lot. The buyer may request a test run to check for any flaws. Make sure to provide them with this possibility to confirm that the equipment being sold is fully functioning. Mind that buyers may invite independent experts to examine expensive or technically complex machinery.
- Meet with the buyer to close the deal. Each side of the deal receives a copy of the equipment bill of sale form signed by both participants. At this stage, the buyer transfers either the full price of the machine or the pre-arranged partial payment. Bills of sale are quite flexible when it comes to payment methods, so the sides can use any preferred way to transfer the funds. Commonly, there’s no need to register the newly obtained equipment with the authorities.
Why Use Bills of Sale When Selling Machinery?
Through using an equipment bill of sale form to record a transaction, both sides receive a decent way to secure their interests. Buyers obtain a valid proof of ownership, which can be used in banks and courts. A valuable asset in your possession can persuade financial organizations to provide you with a better loan. From a seller’s perspective, a valid bill of sale lifts any responsibility for the transferred asset.
A bill of sale guarantees that both sides are willfully engaging in trade while having a comprehensive overview of the deal’s conditions. It prevents disputes over warranties since the document specifies whether the seller is ready to provide one.
Types of Equipment That Can Be Sold with Bills of Sale
Mind that there is no official categorization of equipment; all the below-mentioned types were created to familiarize you with the concept:
- Kitchen appliances. This category includes refrigerators, stoves, ovens, dishwashers, dryers, and any other kitchen equipment.
- Equipment for outdoor usage. This type mainly includes grills, lawnmowers, and agriculture machines.
- Office machinery. Computers, fax machines, printers, scanners, filing cabinets, and other office equipment belong to this category.
- Entertainment systems. This mainly refers to DJ equipment, speakers, receivers, and musical instruments.
- Hobby equipment. Tents, fishing rods, sports equipment, tools for hiking and diving are listed here.
- Automated tools. These include all instruments that either use electricity to function or produce it, including power saws, air compressors, and generators.
How to Find a Proper Bill of Sale Template?
When designing a bill of sale form, you should include all personal details of the sides. The more information there is on the bill, the better for the participants. Make sure to outline payment conditions, including the method that will be used to transfer funds. Bills of sale should contain a detailed description of the object (or objects) being sold.
Still not sure how to create a proper bill of sale? Use our free library to download a printable PDF document template. You can also use a form builder on our website to design a custom solution.