Financial literacy is not merely about understanding the terms on the receipt. It means accurate recording of all financial transactions, proper management of debt, and knowing the time value of money. Among these terms, people often overlook the importance of having an accurate record. One of the documents that help in keeping an up-to-date record of sale transactions is a general bill of sale form. Read more about the form’s importance and use. Read More
Aside from being a useful tool for recording purchase transactions, a general bill of sale forms contains the specific details of the transaction. Expectedly, the form includes the basic information of the private purchase transaction. One might ask how can a simple form be important. The discussion of creating a form, per se, opens other talks about the transaction, such as settlements regarding the warranty and additional payment arrangements. Moreover, a bill of sale form is evidence of the transaction. Therefore, it is honored when presented at court when used as evidence when one party commits a fraudulent act against the other party.
How Do You Create a General Bill of Sale Form?
A bill of sale form has several variations. Almost all kinds of transactions have their version of the bill of sale form. Expectedly, the basis of the different types of forms is the general bill of sale form. This form is easy to fill up. You just need to know the basic details of the transaction and make sure that the data are accurate. Other than the fundamental steps, our site also presents some tips or points to remember on how to create an excellent general bill of sale form.
1. Check the Identification
The first part of the form asks for the basic details of the parties involved. It usually asks for the legal names of both parties, as well as their mailing addresses. Some varieties of the form also ask for the parties’ contact details, such as their phone number or email addresses or both. These details may be the most basic information you’ll see in the form, but it needs to be the most accurate because little mistakes may affect the legitimacy of the form.
2. Provide Complete Description of the Item
Since the form is not specialized for a particular item, the description must be highly accurate. The item in question can be any personal item of the seller, so the seller is expected to know the important identifying qualities of the item. Since a general bill of sale can record the purchase of any item, both the seller and buyer must be aware of the distinct features of the item to make sure that the record is accurate.
3. Settle the Amount and Other Financial Arrangements
The next information to comply is the total purchase price. A partial breakdown of the amount is also acceptable, especially when it shows the value for taxation purposes. Details regarding subsequent financial arrangements are also welcome. The form can record the payment method employed and the agreed-upon payment terms. Terms regarding late payments and warranties can also be mentioned in a general bill of sale form.
4. Ensure the Accuracy of the Dates
As previously stated, a bill of sale can be useful and reliable evidence when it comes to court hearings. So, one can question what sort of trials this document will be helpful. When one party commits fraudulent acts against the other, such as not delivering the item on the agreed date or delivering another item, it may cause these trials. The dates on the bill of sale can prove when the document was executed and enforced, which can help clear out the picture regarding the fraudulent act. Aside from the execution date, it is also essential to double-check the payment dates to avoid payment defaults. So, it is highly necessary to make sure that the dates are exact.
5. Review and Sign
After supplying all the needed details, go over the entire document once again to make sure that there are no mistakes. Always remember that simple mistakes can compromise the validity of this legal document. Once everything is in place, both parties can affix their signatures to show that they agree and promise to adhere to the terms and conditions of the transaction. The signatures also represent that all the details that they provided are accurate, or it is what they believe as true when it comes to ambiguous conditions.
In this modern economy, the processes of buying and selling are inevitable. It comprises an individual’s daily dealings and survival. So, it is highly essential to keep track of all these transactions. A general bill of sale is a necessary document to get acquainted with, especially for those who engage with occasional selling where their products vary from time to time. So, regardless if you are already involved in a trade or not yet, you must know how to use a general bill of sale form.
What are the usual products recorded using a general bill of sale forms?
General bill of sale forms is mostly used for recording the sale of expensive pieces of equipment and jewelry. It is also used for furniture and second-hand items, but not as much as those formerly stated.
Who should have the original copy of the bill of sale form?
Ideally, the buyer must have the original copy of the form. But, both parties must have a copy of the form for accurate record keeping.
Can the seller back out from the sale?
The seller can back out from the sale when both parties agreed on the terms regarding the exit of the seller. But if exit clauses from the seller are not available, the buyer has every right to push through with the transaction. A seller backing out from the deal rarely happens, but it does happen.
Does a bill of sale hold up in court?
Yes, a bill of sale is honored in court. As long as both parties sign it, it is considered legal proof of the purchase transaction.
Do both parties need to be present during notarization?
If notarization is required in your state, a notary public must witness the signing of both parties. For states that do not require this process, notarization is optional.
There is an overwhelming gap between what people understand about their finances. Most focus on their financial activities day by day, with little or no concern about future expenses. The key to tackling this issue is to increase the individual’s financial literacy, and this is best achieved when sale transactions are documented clearly with a bill of sale.