Ready to ditch the furniture you’ve had since college?
If you want to clear your home of old, unused furniture, selling the items you don’t need can be a great way to clear out the extra space and earn some bucks. And with the rise of online marketplaces like Amazon and eBay, finding interested buyers shouldn’t be hard.
But what documentation will you need?
An electronic bill of sale (BOS) is one of the most important documents you’ll need when selling a large piece of furniture online. This document confirms the transfer of ownership and protects you from later claims of theft or fraud.
In this guide, we’ll explore the furniture bill of sale in detail and briefly touch on other documents you may need when selling furniture.
What Is a Bill of Sale?
A bill of sale, sometimes known as proof of sale, is a document used to transfer the ownership of property to another person in exchange for money.
The document is commonly used in large transactions to record the sale of vehicles, aircraft, watercraft, and motorcycles. It can also be used to document the sale of personal items, like furniture or large animals such as cattle or horses.
Is the bill of sale required by law?
In some states, the bill of sale is required for the transfer of specified assets such as motor vehicles. For example, New York, Vermont, and Wyoming require a notarized car bill of sale for all vehicle-related transactions. While not all states require a bill of sale, it’s best practice to issue one to provide proof that a legal sale took place.
So, if you’re selling a valuable asset, such as expensive furniture, you may need a bill of sale documentation. Fortunately, a bill of sale is not difficult to draft as websites like PDF Simpli let you draft one in minutes.
Essential Elements of a Furniture Bill of Sale
As mentioned, it’s a good practice to issue a bill of sale when selling furniture, even if not mandated by your state laws.
But what should you include in the bill of sale?
A typical furniture bill of sale includes the following fields:
- Date of purchase
- Seller’s name and address
- Buyer’s name and address
- Description of furniture – brand, type, condition, color, material, serial number, and other relevant information.
- Purchase price
- Signature and dates from the seller, buyer, and any witnesses
Both parties (buyer and seller) should keep a copy of the bill of sale for their records. For added security, consider having the bill of sale notarized. A notarized bill of sale protects both the buyer and seller from scams or fraud.
3 Reasons to Use a Bill of Sale When Selling Furniture
Here are three reasons to use a bill of sale (BOS) when selling furniture.
1. Legal Protection
A signed BOS protects both parties. For the buyer, the BOS provides proof that the transaction took place. This information can come in handy, particularly if a claim is leveled against you, claiming you’re in possession of stolen property.
For the seller, it finalizes the deal and transfers the ownership, providing proof that a legal transaction took place. It also outlines the terms of the sale, including the purchase price.
2. Easier Documentation/Registration
A bill of sale provides easier documentation and registration for a vehicle. For furniture sales/purchases, it provides more information than the receipt you get at a supermarket or retail store. For car purchases, a BOS must include the following information:
- Make
- Model
- Year
- Odometer reading
- Vehicle Identification Numbers (VIN)
This makes registering your car easy since this is the same information most, if not all, states require during registration.
3. It’s the Law
As mentioned, some states do require a bill of sale for certain purchases, such as vehicles or expensive furniture. If your state requires a BOS for such transactions, failure to issue one will put you on the wrong side of the law.
Other Documents You May Need When Selling Furniture
Besides a bill of sale, there are many other documents you may need when selling furniture. Once such a document is an invoice or sales receipt. If you own a furniture business, you may need licensing documents to prove the authenticity of your business.
Wrapping Up
The furniture bill of sale is a document used to transfer the ownership of furniture to a second party in exchange for money. This document provides proof that the person selling the asset is the real owner. It also provides legal protection for the buyer and the seller.
Since the buyer may not know the origin of the furniture, it’s important to have legal proof that shows how they acquired the asset.
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