An equipment bill of sale template is issued by the seller when they sell an item. This document has various legal purposes including taxation. It is issued when dealing with an expensive piece of equipment such as office tools, electronics, kitchen equipment, etc.
What is an equipment bill of sale?
An equipment bill of sale is a document that acts as evidence of ownership transfer of equipment or machinery from a seller to a buyer. It serves as a sales receipt of the equipment. Also, this bill of sale is a legal document that reflects the instant change of ownership.
Do you require a bill of sale for all types of equipment?
During selling equipment, you aren’t obligated to create an equipment bill of sale. But, this document is highly beneficial for you and your seller especially when you are transferring anything that involves a high price. You can consider it as an extra precaution if you furnish a written document for the transaction.
A bill of sale for equipment is important for the transfer and sale terms. However, you can use this document for the following assortment of equipment;
- Home appliances such as dishwashers, refrigerators, ovens, stoves, washers, dryers, etc.
- Outdoor equipment includes lawn maintenance, outdoor grills, and agriculture machinery.
- Power tools like generators, power saws, air compressors, storage solutions, and hand tools.
- Office or business electronics such as printers, photocopiers, scanners, filing cabinets, fax machines, and binders.
- Audio visual equipment involves speakers, receivers, staging equipment, musical instruments, and DJ equipment.
- Hobby implements include equipment for sports, hiking, camping, diving, and fishing.
How do you write a bill of sale for equipment?
It is important for you and the buyer to provide relevant information. Below are the most essential details that are usually featured including;
- Provide the legal name and address of the buyer and the seller.
- Include details regarding the model, make, serial number, and registration number of the equipment.
- The agreed-upon price including all of the relevant taxes. You have to itemize the cost of each part if the equipment for sale includes multiple parts. It is suggested that mention the amounts in numerals and words.
- Mention the information on the payment methods such as cash, credit card, bank deposit, check, and more. Provide the details of the agreement that you and the buyer agree to installment payments.
- To determine the equipment, include the design, size, features, faults, and other relevant information of the equipment. You can include any special readings for heavy machinery.
- Write the date of sale and your name as the previous or original owner.
- Provide warranty information and printed names and signatures of the buyer, seller, and the witness.
- Include an ‘As-Is’ clause to show that the buyer agreed to buy the equipment in its current condition. If the equipment you sold turns faulty in the future then this clause prevents you from any future refunds.
- You should disclose the details in the document if the equipment has any defects or faults. You must include factual information about the true condition of the equipment.
- Moreover, before signing the document, the buyer should read all of the terms and conditions mention in the document.
Using the equipment bill of sale:
When creating an equipment bill of sale, you should include the serial number. For the following purposes, you and the buyer can use the equipment of machinery bill of sale;
To verify the information:
The seller should verify the authenticity of the equipment you’re selling. After this, they should make sure that they’re buying it from the real owner. By asking to see the original purchase receipt or a bill of sale, they can easily verify this. The buyer will also need these documents in case there is any financing involved.
For testing the functionality of the equipment:
Next, the buyer should test whether the equipment works properly or not. The buyer may hire the services of an expert to do the inspection in case they are buying a piece of equipment that’s very expensive or one that includes complex machinery. In addition, these services can be a little expensive. But, this inspection saves the buyer money if the equipment has some damage or is in poor condition.
For making an advertisement to sell your equipment:
You should make a comprehensive description of your sale item for advertising your equipment. This includes analyzing information such as;
- The year the equipment got manufactured
- The name of the manufacturer
- The serial number
- The model
Likewise, in the heavy equipment bill of sale, you have to share similar information. You should provide all of the specifications regarding with the piece of equipment, its dimensions, and any defects or problems it might have. Also, take high-quality photos of the equipment in a well-lit environment and then include them. To explain the various features or components, pay attention on several close-up and angle shots.
In order to come up with a realistic price, you should research on the current values of the same equipment online. To decide pricing, you can use popular online shops that are competitive to your local market. For similar pieces of equipment, you can also check your local classifieds. Also, include your updated contact information so that prospective buyers can contact you.
How to use equipment bill of sale form?
Here are some tips to consider while using this form;
- You should carefully read and fill this form because you are going to provide important information for transferring ownership. After filling the form, check it thoroughly to make sure that you have not missed anything.
- During filing the form, you should make sure all the original documents are present. Original papers may include registration card of equipment, buyer identification paper, etc.
- The buyer should make a copy of this form in order to remain in the safer side.
- You have to provide truthful information regarding the company, equipment and other areas. You may lead to criminal offense if you provide false information.
- Before handing over the paper, you should clarify all the doubts. This way, you can make your life simpler and avoid other problems and misunderstandings.
The benefits of having bill of sale form:
For buyers, an equipment bill of sale form is a physical buyer that proves transaction has taken place. The buyer also receives a warranty and date of ownership for his knowledge. A seller can show this form to get comfort in tax reporting. They also receive the proof of the date of ownership transfer. This is a good way for buyers to get the details of the sale in written format. A bill of sale assists in updating all the records for the seller. Furthermore, keep this form in a safe place because legal problems can be generated because of the misplacement of such papers.
Conclusion:
In conclusion, an equipment bill of sale template is an official document that serves as the proof of transfer of equipment from a seller to a buyer. It is a legal document that governs the transaction as well as acts as a receipt for the item’s purchase. This document has various legal purposes especially taxation. Include all the aforementioned information to make it an effective bill of sale.
