Whenever you are making an expensive purchase, regardless of the size or type, we recommend securing a medium of ownership transfer evidence. This is what large retailers do when you buy from them. They give you a receipt to document that transfer of ownership between the parties. This can protect you from unwarranted claims of ownership in the future.
Personal Property can vary in value from dollars to thousands of dollars, and when the item doesn’t have a transferable title, it is critical that you secure a Personal Property Bill of Sale to protect your investment. This can be done through a simple receipt, but it doesn’t give much detail regarding the sale. The bill of sale will clarify the details of the purchase, and ensure a safer experience for both parties.
Most states stipulate a minimum dollar amount ($500) at which a contract is necessary to validate the transaction. The lack of a bill of sale for transactions above this amount will then be at the discretion of judge or arbitrator to decide, and can take extended periods to resolve.
An effective bill of sale will include certain aspects in order to properly document the sale, and also protect the buyer and seller from future claims. They include a description of the personal property being sold, the dollar amount of the transaction in both numeric and written form, conditions of the sale, and signatures of both parties.
Below is our preferred Personal Property Bill of Sale template which is designed for use in all states, and can be easily downloaded in PDF and Word (.doc) form for easy editing. Each sale is different so we always suggest you review the bill of sale with your attorney to ensure it meets the legal requirements of the state in which the sale occurs and properly protects your interest.
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