An equipment bill of sale is a type of purchase receipt that proves to the buyer that they lawfully purchased the equipment. The form can be filled out by any party as long as the information is correct. The bill of sale is completed once payment is received by the seller, whether in the form of a credit/debit charge, cash, or a certified check. Continue reading to learn more about the equipment bill of sale form.
What is an Equipment Bill of Sale?
A bill of sale for equipment is a general-purpose document that records the acquisition and sale of any valued piece of equipment. Here are a few examples of equipment you might need to utilize this bill of sale form for:
- Office equipment and machinery (printers, projectors, desks, and computers)
- Equipment for the kitchen (appliances, knife sets, quality, and specialty cookware)
- Entertainment (Sound systems, lights, stages, musical instruments, and displays)
- General and domestic use (lawnmowers, ladders, snow blowers, toolsets, and more)
Equipment Bill of Sale Form
An Equipment Bill of Sale Form is a sales document that proves that a buyer legally obtained equipment. Any party can fill out the form as long as the information is correct. The bill of sale is finalized once the seller receives payment, whether in the form of a credit/debit card charge, cash, or a certified check.
Is a Bill of Sale Required for All Equipment?
Although you are not required to prepare a bill of sale when selling equipment, using one to copy the agreement is prudent when transferring anything larger than the typical sale value. Many legal ramifications that may result from providing a written record of the transaction will have sufficient proof of sale terms and transfer of ownership to effectively demonstrate to a court should a dispute occur. This protects both the seller and the buyer from any liability associated with the sold equipment after it changes hands, as well as stating out the agreement for both parties to inspect before signatures are endorsed and money is exchanged. This bill of sale could be used for a variety of different types of equipment to provide adequate documentation:
- Refrigerators, dishwashers, stoves/ovens, clothes washers/dryers, and other small kitchen appliances are examples of home appliances.
- Lawn maintenance equipment, agricultural gear, and outdoor grills are examples of outdoor equipment.
- Generators, air compressors, power saws, hand tools, and storage solutions are examples of power tools.
- Photocopiers, printers, scanners, binders, filing cabinets, and fax machines are examples of business or office electronics.
- Receivers, speakers, stage equipment, DJ equipment, and musical instruments are examples of audio/visual equipment.
- Sports, camping, hiking, fishing, and diving equipment are examples of hobby implements.
When Is an Equipment Bill of Sale Necessary?
A bill of sale should be used in the following situations:
- You own property that you want to sell and require a record of the acquisition details for accounting purposes. A motor vehicle (such as a car) or other personal goods are examples of property, but not real estate.
- You intend to buy a car or other property from a private seller and want to record the proof of purchase and the terms of your agreement in writing.
- A purchase receipt is necessary. When transferring a title with a state’s department of motor vehicles (DMV) or buying and selling branded cattle, several states will demand a signed bill of sale.
When You Do Not Need an Equipment Bill of Sale
Some transactions involve the exchange of property but do not necessitate the use of a bill of sale, such as the following:
#1. The real estate market.
A bill of sale cannot be used to transfer real estate between owners because real estate transactions are more complex than the transactions outlined above. When dealing with a real estate transaction, you will need extra forms from your state or local government, as well as a quitclaim deed (a legal instrument used to transfer interest in real property).
#2. Services are rendered.
A bill of sale is used to transfer ownership rather than services. If you’re offering or receiving a service, such as business consultancy or childcare, you should utilize a general contract. A general receipt is sufficient if you own a business that accepts payment for selling things.
#3. Small-scale transactions.
Although determining whether or not to create a bill of sale for an inexpensive property is a personal choice, many individuals believe that creating a bill of sale for less-priced products is unnecessary. Small-scale sales do not require a bill of sale.
If you are unsure whether you require a bill of sale, you should consult an attorney. An attorney can assist you in ensuring that you use the correct document and include all necessary information for your transaction.
How to Sell Secondhand Equipment
#1. Examine the Item
Examine the piece of equipment thoroughly for any flaws that may need to be repaired or touched up. The visible state of the object may require minor adjustments or repair, depending on the item. What is appropriate for the appearance of a lawnmower or other outdoor working instruments may not be as appealing to a potential buyer for a refrigerator. Before you promote the equipment, you should double-check that it is in good working order and make any necessary repairs.
#2. Create a Profitable Advertisement
Write a detailed description of the object for sale, including all identifying information such as the year it was created, the manufacturer, model, and serial number. You should also provide all specifications related to the equipment, size, and any difficulties or defects it may have. Take 5-10 high-quality images of the object in a well-lit area, focusing on various angles and close-up shots to show any unique components or characteristics.
Investigate comparable products for sale to determine a reasonable listing price; you might look in your local ads for comparable equipment. You can also look for related postings on Craigslist or eBay to determine pricing that is competitive with your local market. Make sure your contact information is up to date in your listing so that potential purchasers can ask.
#3. Where Should Your Promotional Material Be Listed?
Publicize your ad locally in print by placing it in local newspapers and regional classifieds circulars. Distribute flyers on bulletin boards in areas where potential purchasers may congregate. For example, if you want to sell fishing equipment, you can distribute flyers to bait shops where customers may be interested. Promote your listing on sites like Craigslist and eBay. This can bring in more potential purchasers from nearby and even slightly outside your market location.
#4. Complete the Purchase
When you receive an interest in purchasing the equipment, you should organize a visit to check the item and finalize the sale. Arrange to meet in a safe public venue that is convenient for both the buyer and yourself, if possible. If substantial sums of money must be exchanged, insist on meeting at the buyer’s bank or credit union to make the transaction to avoid carrying big sums of cash. Once an agreement is reached, you fill out the bill of sale, endorse it, and exchange the monies for the purchased equipment.
Where Can I Sell My Equipment?
Large, expensive equipment is frequently sold in person, despite the fact that all equipment may be listed and sent via an online sale/exchange network. Even if it is faster to sell and ship online, in-person conversation and exchanges are usually advantageous to both sides. Regardless of the type of equipment being sold, the seller will discover that making an internet listing is helpful and profitable. Those wishing to sell equipment can advertise it via the following services (some of which are free, while others require a piece of equipment):
- EquipmentTrader: Heavy-duty construction machines and tools can be found on EquipmentTrader. Prices start at $24.95.
- MachineryTrader: A website dedicated to the sale of construction machines and other heavy-duty equipment. The first listing is completely free.
- Facebook Marketplace / Groups: Finding heavy machinery sales groups can be a terrific method to advertise to a specific niche of customers. If the equipment is little, listing it on the marketplace might provide the seller with a lot of publicity.
- Craigslist: Like a dependable piece of machinery, Craigslist is an excellent piece of equipment for listing used or new machinery for sale. Simply be prepared to filter through lowball offers and other spam-like emails on your quest to find a buyer.
How to Use an Equipment Bill of Sale Equipment
Step #1 – Verify Authenticity
Before committing to a purchase, request the serial number of the equipment from the vendor. Then, to ensure legitimacy, contact the manufacturer to determine if the serial number matches a record. It’s also a good idea to check the Stolen Register database to determine if the item has been reported stolen. When filling out the equipment bill of sale, make sure to include the serial number.
After you’ve confirmed that the equipment is genuine, you’ll want to ensure that you’re buying from a legitimate owner. This can be accomplished by requesting the original purchase receipt and/or bill of sale. If financing was used to purchase the equipment, get those documents as well. It is critical to understand that the equipment has been properly paid for.
Step #2 – Testing and Inspection of Working Equipment
After you’ve completed the authenticity check, put the equipment through its paces to ensure it’s in good working order. If the equipment is expensive and complex, it’s also a good idea to employ an inspector to perform a thorough inspection before making a purchase. Even though inspections might be costly if the equipment is damaged or in bad shape, knowing this information can help you save money on the purchase price by acting as negotiating leverage.
Step #3 – Complete the Sale
When it comes to payment, there is little to be concerned about when dealing with an authorized seller or reseller of equipment. Consider only taking cash as a payment option when buying on popular platforms such as Craigslist and Facebook Marketplace to reduce your chances of getting scammed. Bring two completed bill of sale copies to the closing, one for the seller and one for the buyer.
Before signing, double-check the following information to ensure that it is included in the bill of sale:
- Make
- Model
- Year
- Number of Serials
- Buyer and Seller’s Names
- Purchase Price ($)
- Transfer Date
How to Write an Equipment Bill of Sale
Step #1 – Names of the Buyer and Seller
Enter the total price paid by the buyer to the seller for the listed equipment. The seller’s entire name should be written next, followed by their mailing or business address. Rep for the buyer in the following two (2) fields.
Step #2 – Equipment Details
There are six (6) options available for providing a comprehensive breakdown of the equipment being offered.
Step #3 – Payment
Enter the amount ($) that the seller is paying the buyer in the first field. This should be the same amount that was entered on the form’s first line. Then, check the option next to the buyer’s payment method. If none of the options apply, select “Other” and provide the type of payment method used.
Step #4 – Signatures Required
Enter the day, month, and year of the transaction’s completion in the paragraph above the signature boxes. This date may be the same as the date on which the parties sign the instrument. The seller and buyer must then print and sign their names on the form, as well as specify the date (mm/dd/yyyy) on which they registered their signatures. If the parties so want, their signatures can be attested by up to two (2) witnesses. Both witnesses must sign, print, and date the form if this step is taken.
