A general bill of sale is a form that proves a transfer of personal property between two (2) individuals occurred. It outlines the details of what happened during the transaction. The seller must sign to confirm that they are giving up ownership to the buyer. Once this happens, the buyer is liable for the item. Both parties need to keep a copy of the form to verify the change of ownership. This form is commonly used for electronics, home goods, tools, appliances, and other similar items.
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Table of Contents
- By State
- What is a General Bill of Sale?
- How to Sell a General Item (3 Steps)
A general bill of sale is a document that acts as a receipt when selling an item to a buyer. Both parties use this form for non-specific objects that do not fall into another category, such as snowmobiles, cars, or tractors. Instead, a general bill of sale is appropriate for video games, consoles, and jewelry.
When writing a general bill of sale, be sure to include the following:
- Date of Sale: The form must have the day the sale occurred.
- Contact information:The buyer and seller enter their name, address, phone number, and email to prove their identity and give others a method of contacting them after the transaction.
- Property information: By entering the serial number, color, brand, make, year, and model, anyone can locate the item if needed.
- Payment: Serves as a record of the sale price, method of payment, and tax amount.
- Signatures: Through signing, the buyer and seller agree that the information in the form is correct. Once signed, the buyer becomes the new owner of the item.
- Notarization: This section is optional as requirements vary by state. If notarization is required, the buyer and seller must wait to sign until they are in front of a notary public.
Follow the steps listed below to prepare, list, and sell personal property to a buyer.
- Prepare the Item
- List it
- Complete + Sign Bill of Sale
Step 1 – Prepare the Item
Often, sellers who prepare the item before listing receive a more significant profit and have an easier time selling. The preparation method depends on the object, age, condition, and value. For example, the merchant can increase the worth of their personal property by repainting it, replacing parts, or updating pieces. In some cases, the buyer purchases an item to fix or upgrade it themselves. Therefore, taking time to research the item and its market value can help you prepare it as needed.
Step 2 – List it
Sellers must use advertising services that attract the right audience. For example, a merchant would use a general website for items like clothes or rugs. However, they would opt for a more specific service when listing a boat. If the owner does not wish to use an online service, they can take advantage of fliers, newspapers, yard signs, and more. The list below includes methods of advertising.
- General Websites: eBay, Facebook Marketplace, Craigslist, Amazon
- Boating-Specific Websites: Boat Trader, Boats.com, Yachtworld, BoatCrazy
- Car-Specific Websites: Autotrader, Cars.com, Hemmings, CarGurus
- Other Item-Specific Websites: Rumble On, CycleTrader, Etsy, Decluttr, Gameflip
- Fliers & Newspapers
- Local Bulletin Boards
- Yard & Street Signs
In addition to posting it on the correct site, the seller must also choose a reasonable listing price. Furthermore, advertising at the right price guarantees the owner makes a fair profit. Researching prices online, using services like Kelly Bluebook, and factoring in buyer negotiation can help the seller to determine the selling cost.
After posting the advertisement, buyers will contact the seller to set up tours. At this time, the buyer may try to lower the asking price, which is something the seller should be prepared to discuss.
Step 3 – Complete + Sign Bill of Sale
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After negotiating, the buyer and seller must complete a bill of sale to prove the purchase happened. Both parties must fill out the form together and sign in the presence of a notary public or witness as needed.The form must include the following information: 1) contact information of both parties, 2) the item’s description, 3) the payment method and cost, and 4) signature(s).
After signing, the former owner must officially transfer the item to the buyer, or the new owner. As soon as this step occurs, the seller no longer has authority over the item, and cannot undo the sale.
FAQs
It should include a description of the sold item, the date and location of the transaction, and the amount paid from buyer to seller, as well as the names, street addresses, and signatures of the buyer and seller.
Can I handwrite a bill of sale in Georgia? ›
Is a handwritten bill of sale legal in Georgia? In Georgia, a bill of sale for a car does not need to be notarized. Like the state form provided, any hand-drafted bill of sale will have to contain the following information: The names, contact information, and signatures of the seller and the buyer.
What is a receipt for the sale of personal property? ›
A general bill of sale is a document that acts as a receipt for any type of personal property exchanged for cash or trade. The form is needed more by the new owner if they ever need to prove ownership. A bill of sale records the transaction of two (2) parties.
What does consideration of mean on a bill of sale? ›
What does “consideration of” mean on a bill of sale? The consideration is the value that the buyer transfers to the seller. Simply put, and in most cases, the consideration reflects how much (or the dollar amount) the buyer spent to purchase the item.
Is a handwritten bill of sale OK? ›
Can a bill of sale be handwritten? While it is common to present a bill of sale in a digital format, you can also create a handwritten bill of sale. What's most important is to include all of the pertinent details in the bill of sale in order to protect both parties.
Is a handwritten bill of sale legal in Texas? ›
Yes, Texas recognizes handwritten bills of sale as valid, as long as they contain all the necessary information and are signed by both the buyer and the seller. However, using a typed or printed document is generally more legible and professional.
What is required for a bill of sale in GA? ›
A bill of sale in Georgia should generally include: The seller's legal name, full address, and driver's license or state ID number. The buyer's legal name, full address, and driver's license or state ID number. A clear, specific description of the item (make, model, year, color, VIN number, etc)
Can you register a car with a bill of sale and no title in Georgia? ›
In Georgia, titles are required for all 1986 and newer year model vehicles. If a vehicle that falls into this category does not have a title, you won't be able to register the car, which would leave you stuck with a vehicle you can't legally drive.
What paperwork do I need to sell my car in Georgia? ›
Sell a Motor Vehicle
- Gather What You'll Need. The vehicle's Certificate of Title. Proof of sale, such as a Bill of Sale (Form T-7)
- Transfer Ownership of Your Vehicle. Complete the form on the reverse side of the vehicle's title in order to transfer ownership. ...
- Next Steps. The title should be given to the vehicle's new owner.
Is sale of personal property taxable in the IRS? ›
You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.
The term "Bill of Sale" is the correct and standard terminology used to refer to the legal document that records the transfer of ownership of personal property from a seller to a buyer.
Is selling personal items considered income? ›
If you made a profit or gain on the sale of a personal item, your profit is taxable. The profit is the difference between the amount you received for selling the item and the amount you originally paid for the item.
Why do deeds say $10? ›
It is important to note that the law does not specify how much consideration must be given. As a result, it's become a common practice to state a nominal consideration, such as $10, in the deed, regardless of the actual property value or purchase price.
What are the three requirements of consideration? ›
The three requirements of consideration are: (1) each party must give an act, forbearance, or promise to the other; (2) each party must trade what he or she contributes to the transaction for the other party's contribution; and (3) what is traded must have value in the eyes of the law.
Under what conditions is there no consideration? ›
Consideration is not required when promissory estoppel occurs, when pledges are made to charitable organizations, or when there is a firm offer.
What is the abbreviation for bill of sale? ›
bill of sale in American English
noun. a document transferring title in personal property from seller to buyer. Abbreviation: b.s., B.S., b/s.
Does CA DMV require a bill of sale? ›
To take over ownership of a vehicle, you will need:
If the seller is not the owner whose name is on the title, you will need a Bill of Sale signed by both the seller and the person whose name appears on the title. A record of the odometer mileage (if the vehicle is less than 10 years old).
How to write a bill of sale for a car in NY? ›
Frequently asked questions
- The buyer's name, seller's name, their addresses, and driver's license numbers.
- Signatures from the buyer and seller.
- The vehicle information, including its license plate, model year, and body type.
- The sales price/purchase price.
- Any applicable sales tax.
- The purchase date.
Can a bill of sale be handwritten in NY? ›
Can you hand write a bill of sale ny? It is important to make sure all the requirements for the respected state law are included in the bill of sale. As, with any legal written document a bill of sale can be handwritten.