A trailer bill of sale is a legal document that transfers ownership of a trailer or manufactured home. There are two types: absolute and conditional. Details such as purchase price, names, and signatures should be included. It’s important to file the sales invoice with authorities and seek legal expertise.
A trailer bill of sale is a legal document drawn up to transfer title to a trailer or manufactured home from one owner to another. A trailer bill of sale is also intended to demonstrate proof of contract. It is drafted to protect the interests of both parties.
The law recognizes two types of deed of sale. The first, an absolute bill of sale, is signed when the seller acknowledges full payment for the trailer purchase, cash or trade, and transfers ownership and all future rights to the trailer to the buyer. In contrast, a conditional bill of sale is a document that acknowledges only the partial payment made by the buyer for the trailer purchase.
A conditional bill of sale allows the seller to retain legal ownership of the trailer, providing the buyer with the right, as agreed with the seller, to use the trailer until paid in full. Once full payment has been made, the seller will release ownership of the trailer via an absolute bill of sale. In the event of default by the buyer, a conditional invoice of sale is used as documentation to ascertain the forfeiture of any right to reimbursement of payments made by the buyer. In the event of default by the seller, the conditional deed of sale serves as a receipt establishing the buyer’s right to a refund of any payments made for the purchase.
When drafting a trailer bill of sale, all aspects of the purchase should be included to avoid confusion and clearly establish ownership. Details such as the purchase price of the trailer, the full legal names and addresses of both the buyer and the seller must be disclosed; the notarized signature of all parties should be included to ensure validity. A complete description of the trailer should also be included on the trailer bill of sale, along with any registration or serial or model numbers pertaining to the vehicle.
Once completed, the sales invoice must be filed with the competent authorities as soon as possible to avoid liability and ensure the legality of the purchase. Laws vary by state. This makes it best to ensure that all bills of sale are prepared by legal experts who are familiar with the laws in your state to protect your rights.
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