What is a General Bill of Sale?
A general bill of sale is a legal document that shows the sales transaction of personal property between a buyer and a seller. A general bill of sale also serves as a receipt in exchange for trade or cash. It is mostly needed by the new owners, particularly those that won’t bother to prove ownership.
The document becomes valid only when a transaction has been completed. Common uses of a general bill of sale are to document the sale of equipment, furniture, jewellery, pet, and tools.
Why Use a Generic Bill of Sale?
There are so many reasons to use a general bill of sale. Top among the reasons is to avoid misunderstanding. Imagine you offer your property for sale to a distant friend and the transaction didn’t go down well, the only way to reclaim your property is through a legal document like a general bill of sale.
Another reason to consider using the general bill of sale is to avoid issues of fraud. You must have heard cases where people lose their properties to fraud just because they decided to sell privately, instead of using a dealership. With that in mind, a general bill of sale will help you avoid a situation where someone will defraud you of your property.
General Bill of Sale Form Details
For a general bill of sale form to be valid, it must contain the following details:
- Full names and addresses of both the buyer and seller
- The amount involved
- The date the transaction took place
- Signatures of both parties.Any other important information as you may deem fit
- Any other important information as you may deem fit
How to Write a Bill of Sale?
Writing a bill of sale is not as difficult as most people think. If you’re ready to start writing a bill of sale, here is how to go about it:
- State the transaction amount which the buyer agreed to buy the item
- Enter the buyer’s full name, addresses, and mobile number
- Describe the item in question and state the item’s manufacturer’s name
- State the serial number of the model number of the item
- Request the buyer to authenticate the form by signature
- Complete the bill of sale in the presence of at least two witnesses
- The two witnesses should sign the bill of sale to make it valid
Important Terms for a Bill of Sale
The following are important terms associated with a bill of sale:
Property Location:
This term clearly specifies the location where the property is situated
Seller:
The seller is the person selling the item in question
Buyer:
This term clearly specifies the location where the property is situated
Price:
This is the agreed amount that both the buyer and seller have settled with
Payment Form:
This can be anything from a bank transfer, personal check, cash, money order, or certified check
Witness Information:
This conveys your witness information like their full names and addresses
Conclusion
Okay, that's it. You can now see how easy it is to write a general bill of sale. At its core, a general bill of sale is a legal document that records the private transactions between a buyer and a seller.
A general bill of sale contains important information like full names and addresses of both the buyers and sellers, the date of the transaction, the description of the item bought/sold, the signatures of both parties, as well as any other information.
If you don't want to sell your property through a dealership due to the extra cost, selling privately requires a general bill of sale. Therefore, ensure you always use a general bill of sale to avoid fraud or misunderstanding with a buyer/seller.
