What is bill of sale?
Bill of sale is a document of legal status that states that a transfer of goods has taken place from one owner to the other. It is only applicable for the movable goods and thus is widely used in different kinds of transfers of goods such as that in the case of motor vehicle transfer when it is done on loan which is supposed to be payable in installments.
The contents of bill of sale form
- The type of vehicle that is being sold or transferred such as any type of motor vehicle like car, scooter, etc.
- The information about the vehicle in question such as the make, model, year of manufacturing, VIN number chassis number etc.
- The name of the person who is the present owner of the vehicle and his address
- The name and the residential information of the person who is going to be the owner after the transfer
- Signature of the person selling the vehicle along with date
It is not deemed necessary that the buyer too signs the bill of sale but for the seller it is mandatory. Bill of sale is for the benefit of both the parties. The seller needs it as a proof of no longer owning the vehicle which in case of accident or involvement in any criminal activity may be helpful as evidence that you do not own the vehicle any more. As a buyer if you have the bill of sale you will have the proof that the vehicle now belongs to you and you are the owner of the vehicle from the date that is mentioned on the bill of sale voiding any ownership of the previous owner. Though this bill of sale may be thought by some as the complete transfer of ownership but this is not the case as the complete transfer of ownership will not be considered complete until a title transfer does not take place.