A Bill of Sale is a document or form that indicates the transfer of possession of a motorcycle from one person to another.
This document comes in handy when disposing of a motorcycle or selling it to another. It is used during the transfer of the ownership period of time. Moreover, it is what a receipt is to ordinary transactions. It showcases the costs involved, the item handled and so much more information. During the transfer of ownership, the motorcycle is delivered ‘as-is.’ This means that some warranty or privileges which the manufacturer provides are not applicable or no longer hold. The new owner has to make appropriate arrangements to provide them on his own.
Also, in case the buyer desires to inspect the motorcycle from a certified mechanic, he should deposit some security with the owner, which shall be deducted at the point of sale.
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Requirement of Bill of Sale
It is used to prove that the transfer indeed took place. Further, it identifies those who were involved in the transaction as well as the associated costs. Apart from its primary role of proving a transaction, this document may also be used to fight legal battles touching on that sale at a later date and if need be.
This document is important in many regards and for many reasons. The following are the top purposes for which it is absolutely necessary:
Proves transactions
We noted above that this document proves that the transaction indeed occurred. That is because it contains the amount of money involved, the make of the motorcycle, the date of the transaction, and the parties involved. It is what a receipt is for ordinary transactions.
Mandatory for ownership transfers
In many states and jurisdictions, this document is mandatory for the transfer of ownership of motorcycles. This is necessary to comply with the prevailing statutory regimes and other laws that governing the transfer of assets. What’s more? Some states require that this document be notarized as proof of authenticity.
Prevents fraud
It goes a long way in preventing fraud, more so if it is notarized. Through the process of notarization, the document is made official. Moreover, appropriate background checks are often carried out before a seal of approval is affixed to it. By all means, these measures prevent fraud and possible counterfeits.
Used in litigations
Any litigations that arise from such ownership will usually be argued out better if this document exists. The jury will rely on it to ascertain the party that is at fault and who is scot-free. The details that are shown on the document are the ones that make this possible.
Taxation purposes
Lastly, you will need this document to file your tax returns. It acts as proof that you indeed carried the transaction you indicated. Further, the document may also help you to receive tax breaks or returns if you qualify for such. Lastly, it helps you to handle any disputes that may yet arise from the process.
How to Write Motorcycle Bill of Sale
Since the seller understands the importance of having this document during the sale of a motorcycle, here is how to write it. The information that should be included in this form is shown below.
The parties
The details of the seller and the buyer must be indicated in it. These details include the names and their mailing address.
Price information
The price information on the bill of sale includes the agreed amount that the seller will receive from the buyer to make the sale transaction complete.
The image below shows the template where the details of the parties and the price information should be indicated.
Motorcycle description
In the section of the motorcycle description, the following details about the motorcycle on the sale are needed: the model of the motorcycle, the make of the motorcycle, the VIN (Vehicle Identification Number), the year of manufacture, the color of the motorcycle, its length and width, and odometer reading.
Date of agreement
The date of the agreement is the date when the document is completed. It is written in the dd/mm/yyyy format on the form.
Signatures
After the date of agreement has been indicated, the next information required is the signatures. The buyer’s signatures, seller’s signature, and their printed names must be indicated. The date of the signatures should also be included. The other sets of signatures and printed names needed are from the two witnesses.
Notarization
After the document has been written, notarization is required by the notary public. This will include the signatories plus the signatures from a witness. The state notary seal is also required at the end.
Conclusion
When selling a motorcycle, one needs to have a bill of sale for the transaction to be legal and valid. The seller requires it to indicate the change of ownership and the buyer will need it for the registration and title collection process. It should be signed only after the seller has received all the cash since this form indicates a complete transaction has been made.
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