A BOS is a legal document that serves two purposes. It confirms the transfer of title to the property and also serves as evidence of the contract. It is commonly a requirement to register a car, a boat or some other personal property. It has to conform to the state regulations. For instance, many states want that the vehicle BOS includes an odometer reading. Some states, on the other hand, want it to be notarized. While both the parties should sign the bill of sale, but the seller needs to sign it.
BOS can also be provided as security for a loan. For instance, if someone pledges the car as collateral for a loan, the lender might need a bill of sale to become effective only when the borrower defaults the loan. It can also be used as a requirement in the loan application. For instance, when a car is purchased on the instalment payments, the complete agreement can be framed as BOS. Although the transfer of title doesn’t take place until all the payments required under the loan are made.
Example: Car Bill of Sale
When a car is sold, the transaction will involve through a document called a bill of sale. It records the transaction, like a receipt and works as an official proof of ownership. It can be used is a variety of situations. It contains all the critical information about the transaction which occurs when you buy or sell a car. It is a legal requirement in some of the states. The requirement of a bill of sale varies from one state to the other. It includes the location, sale price, date and a notarized signature. For instance, bill of sale template Utah may include the details like:
- The date on which the sale happened
- Signatures of the buyer and the sellers which may have to be notarized in some of the states.
- Vehicle identification number or VIN
- Odometer readings
- Make and Model of the Vehicle
- Year in which vehicle was manufactured
- Type of the vehicle
The buyer and the seller have to provide their names and addresses for the document to become valid.
Need of BOS
It’s not that every state requires the use of a bill of sale. It’s not uncommon for the sellers to provide one anyway. However, record keeping assures the buyer that the transaction is legitimate. It also helps the buyer and the seller to avoid any legal hassles later on. The details of the sale are defined beforehand. With a BOS, the buyer knows that the vehicle is being sold on ‘as is’ basis and the seller is not responsible for making any repairs before handing it over.
BOS for Seller
In a vehicle sale, the seller has most of the responsibility. State laws suggest that usually, the seller has to provide the bill of sale. But providing a BOS alone doesn’t mean that the transaction is complete. Still, a title transfer would be required to conclude the sale. Its purpose is to prove that seller doesn’t own the vehicle anymore and has no responsibility afterwards.
BOS for Buyer
For the buyer, getting a bill of sale is essential too. It mentions what the buyer has paid for. It comforts the buyer that they are not stuck with a car that doesn’t run, or they didn’t pay for anything extra like the warranties that were never there. BOS shows that the buyer has completed the payment of the vehicle, gives the essential details, and the sale price to make the registration simple.
It’s easy to create a BOS for the vehicle or any other personal property. Sign up with a reputed legal forms site. Most of them offer a free trial subscription during which bill of sale template Utah can be used.
Tell us how we can improve?