Whenever you are making an expensive purchase, regardless of the size or type, we recommend securing a medium of ownership transfer evidence. Not only is it required when applying for title transfer with your local state office, but it can also protect you from claims against ownership or liabilities following the transaction. It can be the cheapest (free) version of insurance you can buy.
Tractors can vary in value from thousands to hundreds of thousands of dollars, and when a title isn’t available, it is critical that you secure an Tractor Bill of Sale to protect your investment. Tractors are usually held for long periods and over time owners tend to forget the location of the original title paperwork. Because of this, a bill of sale is needed to document the sale and exchange of the tractor.
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 to sale, and also protect the buyer and seller from future claims. They include a description of the tractor 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 Tractor 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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