Who keeps the bill of sale?
The buyer and seller have just signed the bill of sale. Now what?
A bill of sale certifies a big transaction — usually of a large purchase like a vehicle or livestock. It frees the seller from liability and proves the buyer’s ownership. The seller is responsible for drawing up the document, but who should keep the bill of sale once the terms are settled, the documents signed, and the transaction finalized?
The short answer is that both the buyer and seller should retain the bill of sale for their records. This document protects everyone involved should any disagreements arise in the future. Typically, the buyer should keep the original and the seller should keep a copy. Learn why it’s important for both parties.
Why the buyer should keep the original bill of sale.
The buyer needs the original bill of sale in most states in order to obtain a title and register their vehicle or livestock purchase. The bill of sale is also a key reminder of the terms and conditions of the purchase should any difficulties come up with the item that were not outlined in the original agreement.
Additionally, the bill of sale can protect from certain liabilities – showing that the property transfer actually took place.
Why the seller should keep a copy of the bill of sale.
The seller should keep a copy of the bill of sale in order to shield him or herself from liability, should the buyer decide to take legal recourse for any dissatisfaction with the item purchased. The bill of sale relieves the seller from legal liability and is useful for clearing up any murky legal arguments, or for tax and insurance purposes.
How does a bill of sale work?
Before we answer the question of who keeps the bill of sale, we have to understand how it works in a legal context.
Your bill of sale shows proof that both buyer and seller had legal intent to transfer ownership of any given item. Because of this, your bill of sale protects both parties involved in the sale from any malicious legal issues.
This means that the seller would not be able to make false claims of theft or related crimes against the buyer, reducing their liability.
Additionally, it protects the seller in case of payment failure from the buyer. The bill of sale would give them legal proof to use in any formal complaint or lawsuit, if it came down to that. This limits the liability of the seller for malicious suits and theft of goods.
Create your bill of sale.
The seller is responsible for drafting the bill of sale. Even if it’s not required by your state, as a seller you’ll want to put one together. Take a look at your state laws surrounding ownership transfer to be sure that you have all of your bases covered.
Luckily, it’s easy and simple to create a legal binding online document. It’s even easier to seamlessly sign, send and protect your document with Adobe Acrobat Sign. Collaborate and password-protect your PDFs to avoid any leaks of personal information – and customize the agreement to suit the needs of your agreement in just a few clicks.
Explore how you can create a bill of sale form and add fields for legally binding signatures with Acrobat Sign.
