A Bill of Sale is a legal document that the seller and buyer need to sign while selling or purchasing anything. It can be a vehicle, an electric appliance, equipment or a piece of machinery depending on the situation but the bill of sale remains the same. By signing the bill of sale, you as the seller, claim that you have transferred the ownership of that particular item to someone else in return of a certain amount of money. In the same manner, the warranty bill of sale is a document that is used for the same purpose but with this document, the seller gives warranty for the selling item to the buyer so that the buyer can claim the warranty in case of any damage, defect or other liability related to the sold item.
Importance of Warranty Bill of Sale:
When you buy something from an owner with resale process, you need to make sure that you are buying the item legally and there is no liability attached to that item. For example, if you want to buy a car from a person, you need to make sure that he has paid the loan installments and didn’t use the vehicle in any illegal activity. This is very important because if you buy the item and later find out a problem, there is nothing you can do except to be responsible for the liabilities and legal situations. This is why when buyers purchase anything, they ask for the warranty bill of sale signed by the seller.
This bill on one hand, states that the new buyer has paid for the ownership of that item where on the other hand, this warranty bill also states that the seller has told everything to the seller and he didn’t hide any fact from the purchaser. Later, if the buyer finds any problem, he can file a case against the seller with the warranty bill of sale or ask the seller for out of court settlement where he takes the responsibility of solving the matter and resolving the issue. The warranty bill of sale is more important when you buy a vehicle and real estate property because there are many liabilities related to these two items i.e. loan payments, illegal use, tax frauds and claim of ownership from a third person after you pay for the item and transfer the ownership to your name.
Key Elements to include in the Warranty Bill of Sale:
- Name of the seller with contact address and social security number
- Name of the buyer with social security number and contact address
- Names of the witnesses and their contact addresses
- Details of the item (vehicle) or property that is being sold
- Date when the deal was placed
- The date when the ownership of the item or property will be transferred to new buyer
- Warranty claim provided by the seller
- Payment details for the selling item
- Signature of the seller, buyer and witnesses
Here is preview of this Free Fillable Warranty Bill of Sale Form in PDF format,
Here is download link for this Warranty Bill of Sale Form,