An equipment bill of sale form is a general-use form that can be used for purchasing or selling relatively any valuable piece of equipment.
An equipment bill of sale acts as the receipt for the purchase besides working as a legal document governing the transfer of equipment ownership from a seller to a buyer.
Customarily, the equipment bill of sale form provides the details of the transaction, including the agreed-upon purchase price, the parties involved in the transaction, the equipment’s detailed description, and the terms of the sale. It also documents the signatures of both the involved parties.
An equipment bill of sale is not usually required for the sale of all types of equipment, particularly low-value pieces of equipment. However, if one is transferring ownership of high-value pieces of equipment, the use of one to document the transaction between the seller and the buyer is essential for many reasons.
Listed below are some of the core reasons why one should use an equipment bill of sale form:
- The use of an equipment bill of sale form is a safe method of covering one’s bases to prove ownership of an item and emphasize renounced responsibility for the item sold. This helps protect the seller from any liabilities associated with the equipment once sold.
- Furnishing a written record of the transaction between a seller and a buyer protects both parties from any legal repercussions that may arise in the future. An equipment bill of sale stipulates the terms of the transaction, and it documents the transfer of ownership from one party to the other. Therefore, if any legal repercussions arise in the future or any disputes come up, both parties will have enough proof to demonstrate in court adequately.
Tools that Require a Bill of Sale
Various tools require one to use an equipment bill of sale when selling or buying them to ensure correct documentation. These include:
Heavy construction/ commercial equipment is used for a variety of purposes in large projects. Construction equipment makes the construction process easier and faster. Different types of heavy construction equipment that require the use of an equipment bill of sale in buying or selling them include Backhoe, Dragline excavator, Bulldozers, trenchers, Loaders, Wheel tractor scraper, Pile boring machine, telehandlers, etc.
Power tools include generators, hand tools, air compressors, storage solutions, power saws, etc.
The most common forms of outdoor equipment are outdoor grills, agriculture machinery, equipment for lawn maintenance, etc.
Audiovisual equipment includes staging equipment, musical instruments, receivers, DJ equipment, speakers, among others
Office or business electronics
Examples of equipment that fall under this category include printers, projectors, computers, photocopiers, fax machines, binders, filing cabinets, office desks, and scanners.
Kitchen appliances such as refrigerators, dishwashers, ovens, dryers, stoves, microwaves, knife sets, quality, and specialty cookware should also be sold using an equipment bill of sale.
An equipment bill of sale is essential when selling or purchasing medical equipment such as X-Ray digital panels, warming cabinets, video laryngoscopes, ultrasound probes, video endoscopes, pediatric tables, surgical tables, surgical stretchers, suction pumps, medical stools, respiratory ventilators, oxygen monitors, anesthesia monitors, fetal monitors, among others.
Sports/ hobby equipment can be used as protective gear or as a tool to help the athletes play the sport conveniently. Transferring ownership of sporting equipment from one party to another requires the use of an equipment bill of sale. The most common examples of sporting gear/hobby implement include Football helmets, mouthguards, Shin pads, shoulder pads, bicycle helmets, racquets, wickets and bases, flatbeds, camping equipment, hiking equipment, fishing equipment, and diving equipment.
Selling an Equipment
The key to selling used or new equipment for cash is finding the right buyer and the best price. To find the right buyer, one needs to know where to sell the equipment and how to go about it. To obtain value in terms of dollars for the equipment, the seller must ensure that the equipment is in the best condition and develop a viable advertisement for maximum visibility.
Here is a well-demonstrated procedure for selling a piece of used or new equipment:
Examine the equipment
If the seller intends to sell a used item, the first step should involve inspecting the piece of equipment to check for any issues that may need repair or a touch-up. Depending on the specific type of equipment, the visible condition may require slight repairs or improvements. However, if the equipment is too faulty or requires significant repairs and improvement, a wise choice would be to call in an expert to try and get it to work. On the other hand, if the tool is beyond repair, then it is best to sell the machine for parts.
Pro Tip: Selling equipment for parts can sometimes offer lucrative returns as compared to selling it whole.
It is also important to note that what may be acceptable for the appearance of a power tool, for example, may not be as presentable for medical equipment to a potential buyer. Therefore, one needs to understand what they are working with first before deciding on the applicable repair and improvement method.
Check the authenticity
Secondly, the seller should check for the equipment’s authenticity by double-checking the equipment’s serial number. One way of doing this is by calling the manufacturer and asking them to verify the equipment’s serial number. Another way of verifying the equipment’s authenticity is by searching the database of stolen registers, especially if the seller bought the item from another party, who was not the original manufacturer. Given that this is the case, the seller should also look for the original purchase receipt or equipment bill of sale issued at the transaction time.
Once the seller has ensured that the equipment is in good working order and authentic, it is time to develop a viable advertisement. To advertise appropriately, one needs to provide a comprehensive description of the sale item, including all its identifying information, all its specs, dimensions, and any defects that the equipment might have. While listing the equipment’s identifying information, the seller must make sure to include the following details:
- The year the equipment was manufactured
- The name of the manufacturer
- Equipment’s serial number
- The model
Besides, the seller may want to include several high-resolution snapshots of the equipment taken in a well-lit environment from various angles. Taking close-up shots of the equipment is also recommended as it helps to highlight and emphasize the equipment’s unique features or components. If the seller can film videos of the sale item, even with their phone, it would be great. Videos are usually great sources of content that lets one show off their equipment in action. Videoing also offers a massive help to digital marketing, especially since it is such a competitive industry.
After developing a comprehensive advertisement, research the current values of similar equipment online to come up with a realistic price for the sale item. One can use popular online shops to establish pricing that is convenient and competitive within the local market. In addition to popular online shops, the seller can also check with their local classifieds for identical pieces of equipment. Finally, the seller should ensure to provide his/her contact information so that potential buyers can easily reach out to them for additional inquiries.
List the equipment
The fourth step of selling equipment involves publicizing the advertisement to attract the required visibility. Firstly, the seller can contact friends or family members and see if they are interested in the item that is up for sale. If there are no interested family members and friends, the seller can launch broader marketing techniques. Such marketing methods include:
- List the advertisement locally in print via local newspapers and regional classifieds circulars
- Distribute flyers on bulletin boards where prospective buyers commonly frequent. For example, if the seller wants to sell agricultural machinery, he/she would want to post the equipment at an agribusiness store where those who attend may be interested.
- Suppose local listings do not attract as many prospective buyers as the seller would want to. In that case, the seller can utilize the various available online resources and sites such as Facebook Marketplace, Craigslist, eBay Business & Industrial Section, or join a public Facebook group dedicated to buying and selling used equipment. Online marketing sources usually have the potential to attract higher numbers of prospective buyers locally, regionally, and even globally.
Finalize the Sale
Listing the equipment online or advertising locally will most definitely attract several interested clients willing to purchase the equipment. Once the seller receives an offer, scheduling a visit for the buyer to inspect the item in person before closing the deal is a wise choice. When the time to meet with the buyer comes, arrange to meet in a safe public place that is convenient to both parties. If the buyer decides to purchase the equipment at the meeting, it is best to consider accepting only cash as the payment option. This is essential to minimize the risk of fraud. However, if the transaction involves exchanging large amounts of money, the seller should insist on meeting at the purchaser’s bank or credit union to make the exchange to avoid carrying large amounts of cash at hand.
Once the seller and buyer reach a mutual agreement, furnishing a written equipment bill of sale form for the transaction is highly recommended to offer an extra layer of protection to both the seller and the buyer. The equipment bill of sale form should then be filled out, signed by both parties, and the original copy of the document issued to the buyer after exchanging the funds for the purchased equipment in full. The seller can make a copy of the original equipment bill of sale for record-keeping purposes.
Filling the Equipment Bill of Sale Form
When filling the equipment bill of sale, be sure to follow the steps below to ensure accurate documentation.
Write the purchase price
The agreed-upon purchase price of the equipment should be featured in the equipment bill of sale. The purchase price should be inclusive of all the relevant taxes. Given that the equipment comprises several parts, the seller should itemize the cost of each part of the equipment. For easy understanding, the purchase price should be written in both words and numerical figures.
Provide the seller and buyer’s information
The next section of the equipment bill of sale form should include the names and addresses of the seller and that of the party buying the item.
Write the equipment’s data
Step three of filling an equipment bill of sale requires the seller to offer comprehensive information about the sale item. This identifying information comprises the make, model, registration number, and serial number (if applicable) of the equipment. The equipment’s specific information such as the size, color, design, special readings such as odometer readings for heavy machinery should also be itemized in the bill of sale form.
Important Note: While providing the equipment’s data in the equipment bill of sale form, the seller should disclose all the information about the specific item. These should include a disclosure of any faulty components of the equipment. It will be irresponsible for the seller to fail to provide factual information about the actual state of the equipment, as this will most certainly work against them in the future when the seller wants to sell other items.
Where the vehicle was initially acquired from another party and not from the original manufacturer, the seller should supply the previous owner’s information, just in case the buyer wants to verify the equipment’s authenticity. In addition to that, the seller should also attach receipts for proof of ownership or an equipment bill of sale issued at the time of the transaction between the current owner and the previous owner.
Include the mode of payment
Details on the mode of payment used to purchase the equipment should also be featured in the equipment bill of sale form. If the buyer paid using cash, bank deposit, credit card deposit, check, or if the item is bought on hire purchase with a deposit being paid upfront and the rest of the amount paid in bits, this information should be clearly detailed in the document, alongside the appropriate dates.
Include an “As-Is” Clause
An As-Is clause indicates that the buyer has agreed to purchase the specific piece of item in its current condition. Including this clause in the equipment bill of sale, form is essential as it helps to protect the seller from any liabilities associated with the equipment’s maintenance once sold. Therefore, if the equipment becomes faulty in the future, the seller is not legally responsible; thus, the buyer cannot claim a refund.
The next step should be to write the exact date on which the transaction took place. The format of the date should be Day/Month/year.
Since the transfer of ownership of an item from one party to another is considered an agreement contract, both the involved parties must sign the equipment bill of sale form to make the agreement valid and legally binding. The buyer and seller’s printed names should also feature in the document.
Pro tip: Before signing the equipment bill of sale form, both parties, especially the buyer, should read and understand the terms and conditions of the sale.
Just like any other contract, once the equipment bill of sale form is signed, it means that an accord has been reached and the transaction is complete.
Free Bill of Sale Forms
Here are free equipment bill of sale forms that can be downloaded and customized as per need:
An equipment bill of sale allows the legal transfer of equipment or machinery from an original owner to an interested new owner. The equipment bill of sale not only provides proof that a buyer acquired a piece of equipment legally, but it also provides the specific transaction’s details and the sale terms. Therefore, when one is looking to sell or buy high-value pieces of equipment online or in person, it is always a great idea to create and fill out an equipment bill of sale form for protection against potential fraud and for legal purposes in case a party needs to prove ownership of the item in future.