An equipment bill of sale is a document that enables the transfer of machinery or equipment from a seller to a buyer. This document acts as the receipt for the purchase besides working as a legal document governing the transaction. The document is used for general transactions involving the sale of equipment and machinery.
Some equipment that can be purchased using this document include kitchen equipment (knife sets, appliances and cookware), office tools and machines (projectors, printers, computers and desks), entertainment equipment (lights, sound systems, stages, displays and musical equipment), home use equipment and machinery (tool sets, lawnmowers, snow blowers and ladders), among others.
Though you may create an equipment bill of sale from scratch, it will take efforts and time. You can make the work easier by using a template. Choose a template that has sufficient spaces to fill in all the relevant details.
Essential details in the equipment bill of sale
Both the seller and the buyer have the task of providing relevant information that will appear in the equipment bill of sale.
Essential details that should feature in the equipment bill of sale include:
- Legal names and address of both the seller and the buyer
- The seller should offer information on the make, model, registration number, and the serial number of the equipment.
- The price: The agreed price should feature in the document. The price must also include all the relevant taxes. If the equipment comprises of several parts, it’s essential to itemize the cost of each component. The amounts should be both in words and in numerals.
- Mode of payment: Besides the price, details on the method of payment should feature in the document (e.g., cash, bank deposit, credit card deposit, check, etc.) If the buyer pays in bits, also include these details with the appropriate dates.
- The size, design, faults & features, and other relevant information that identifies the equipment
- Vehicle identification number (VIN)
- For heavy machinery, you may include special readings such as odometer readings
- Date of the sale
- Original or previous owner
- Warranty if applicable
- Buyers, sellers, and witnesses signatures and printed names
- As-is clause: The equipment bill of sale should also feature an as-is clause to indicate the buyer will purchase the equipment in its current condition. This clause is essential to protect the seller form future refunds if the equipment turns faulty.
- Disclosures: If the machine has any faults, these details should feature in the equipment bill of sale. It’ll be irresponsible for the seller to fail to provide factual information about the state of the equipment.
The buyer must read and understand the terms and conditions of the sale before signing the document.
Free equipment bill of sale forms
How to make use of an equipment bill of sale
Before purchasing the equipment, you should request the seller to provide the equipment serial number. Once you get the serial number, call the manufacturer and confirm the authenticity of the equipment. Additionally, you can cross check the equipment’s serial number in the database of stolen equipment.
After confirming the authenticity of the equipment, you should go ahead and ask the seller to produce the original purchase receipt or bill of sale for the equipment. These documents will prove if you’re dealing with the actual owner and if they had paid fully for the equipment.
After you have confirmed that you are buying genuine equipment from the right owner, the next step will be to inspect to confirm the equipment is in the right condition.
For this exercise, it’s important to work with a qualified professional. Though embarking on an inspection is costly, it’ll save you money if the equipment is faulty, besides you can use this information to negotiate for a price cut if the equipment requires minor repairs.
Complete the sale
Once you have made sure the equipment is in perfect condition, you can proceed and pay for the equipment. Depending on where you’re purchasing the equipment from (e.g., craigslist, Marketplace, or Facebook), you might have to consider cash payments to minimize the chances of fraud. Make sure to sign two copies for the bill of sale, so that you remain with one and the seller retains another copy. If possible, you the seller should provide a digital replica of the equipment bill of sale to the seller. The details in both hard and soft copies should not vary.