A Brief Introduction About the Motorcycle Bill of Sale
Whether you are buying or selling a bike, it is important to obtain the bill of sale for a motorcycle. The Motorcycle Bill of Sale can be defined as the formal agreement for allowing a person to buy and keep the receipt after the completion of the transaction. This formal receipt can be used for titling as well as registration of the bike.
For the buyer of the motorbike paying in cash, the document is used for serving as a paper document only. As such, the document can be used for providing evidence that a legal purchase, as well as a legal sale, has been implemented and the transfer of ownership has also occurred successfully with the help of the bill. The motorcycle bill is available in the “as-is” condition. In case there is some inspection request, it is required to be completed before the process of completing the entire sale. The document for the purchase of the motorbike will require a witness as well as notarization by the given Notary Public of the state.
Who Takes the Motorcycle Bill of Sale?
A person who is buying a motorcycle from a private seller might, later on, be required to present the official or legal proof for the transaction. This is wherein the role of the motorcycle bill of sale form comes into place. Typically, the document is known to feature a buyer and a seller as the main participants of the transaction.
It becomes vital that anyone who is purchasing or selling the motorcycle privately, instead of some dealer, should make use of the bill indicating there has been a sale made. It is not uncommon to come across instances of thefts of bikes or damage done to the bike. In such instances, the bill of sale for motorcycles plays a vital role. Bill of sales is known to provide potential benefits to both the buyers as well as the sellers of the motorbike.
Purpose of the Motorcycle Bill of Sale
The bill of sale for motorcycle is a legal document that is used for recording the transfer of the ownership of the motorcycle (asset) to some second party (buyer) in exchange for money. A typical bill of sale is an official document that can also be used for recording the sale of other vehicles including boats, watercraft, autos, in addition to the motorcycles. In some cases, the bill of sale is also used for recording the sale of some personal property like furniture or animals.
As per a specific rule, the bill of sale gets drafted by the seller (or the previous owner of the asset) and is known to include all the particular details of the given transaction. It is also used for protecting both the buyers as well as sellers in case any disagreement tends to arise in the future.
A bill of sale is known to function as a receipt. It proves the fact that the ownership of some item (in this case, motorcycle) has been shifted or changed to some other owner. It is also known to detail the given terms of sale including vital information of the sale made like delivery, the price of the commodity, and its overall condition. Bills of sale for a motorbike can help in proving the identity of the true legal owner of the vehicle. Moreover, there are several states as well as countries that make use of the given bill for determining the total amount of sales tax that is owed on the given transaction.
Contents of the Motorcycle Bill of Sale
When you are signing a bill of sale for buying a motorbike, it is important to note that it should contain the following information:
- The date of the bike purchase
- Name as well as address of both the buyers & the sellers
- The amount that has been paid for ensuring the transfer of ownership
- Description of the asset (motorcycle) that is being transferred
- Guarantee that the motorbike is free from all previous offsets and claims
- Warranties or representations
- Signature of the buyers, sellers, and the one obtained from the notary public
When the motorcycle bill of sale template is being drafted, it is important to ensure that the bill complies with the respective state regulations. This is because the bill of sale regulations tends to vary from one state to another. For instance, some states only require the buyer to sign the given document. At the same time, other states require both the buyer as well as the seller to sign the given document. Moreover, some states require the document to be notarized properly.
How to Draft the Motorcycle Bill of Sale?
The motorcycle bill of sale template can be prepared as a motorcycle bill of sale PDF format. While drafting the template, it is important to keep in mind that you are including all the specific details of the bill and not missing out on the major ones. Some of the steps to follow are:
- Write down the full name as well as address details of both the buyer & the seller. It would be best if you also aimed at including the important details like ZIP codes and apartment numbers. In case there are more sellers or buyers, then the first seller should include the details of all other parties for legal applications.
- Keep a note of the party that is transferring the ownership of the bike. You should also note down the payment price on the given bill of sale that should be near the sale’s intention.
- State the type of motorbike that is being sold by including vital details like VIN, engine number, model, year, and others.
- Make a note of the warranties in the bill. It is quite uncommon for the private transfer of bile ownerships to come with a warranty.
- Sign as well as the date the bill in the end. It is important to make sure that both parties are signing as well as putting dates to the bottom of the bill.
There are several grounds to negotiate for the sale of the motorcycle. The buyers can negotiate on various factors like the price of the motorbike, its specific model, specific traits, and so more. At the same time, the sellers can also consider negotiating with the buyers in terms of the overall price and terms & conditions of the bill of sale.
[Also Read: Trailer Bill of Sale]
Benefits & Drawbacks of the Motorcycle Bill of Sale
There are several points of benefits of the bill of sale for motorcycle –for both the buyers as well as sellers. Some points of benefits of the bill to the sellers are:
- Ease of tax reporting
- Protection under the “as-is” condition
- Date of ownership transfer of the bike
At the same time, the buyers of the motorbike are also known to benefit from the bill. Some of the major advantages are:
- Proof of ownership of the motorbike
- Date of ownership transfer
- Information about the warranty for the bike
While there are potential benefits of the bill of sale, some of the drawbacks of the bill can be that it is difficult to draft and analyze at the same time. Therefore, it is recommended to go through the in-depth details of the agreement properly.
What Happens in Case of Violation?
There are several grounds for the violation of the motorcycle bill of sale. In case the buyer is not able to ensure the rightful transfer of ownership of the bill, the seller (or original owner) of the motorbike holds the right to withdraw from the transfer of the bike’s ownership. Moreover, if the buyer is not able to fulfill the terms & conditions of the bill –especially to the price of the motorbike, the seller or the owner of the bike holds the rights to cancel or terminate the agreement while canceling the transfer of ownership at the same time.
A bill of sale for motorcycle is a document that is known to legally bind the buyer as well as the seller that helps in transferring the ownership(1) from one party to another in exchange for some monetary compensation. When there is a need for drafting the bill of sale form, it is important to make sure that it is complying with the particular legal requirements of the given state. While there are several instances of the bill of sale of the motorcycle, it is recommended to take help from a reliable service provider while preparing the bill of sale. Invest in the same wisely!