You would usually issue an equipment bill of sale when you sell an item. This is a document that has several legal purposes, especially taxation, and it’s issued when dealing with any expensive piece of equipment like office tools, office machinery, kitchen equipment, and other electronics or communication items.
Equipment Bill of Sale
Do you need it for all types of equipment?
You aren’t obligated to create an equipment bill of sale when selling equipment but the use of one to document the arrangement between yourself and the buyer is a wise move, especially when you’re transferring anything that involves a high price.
Consider the document as an extra precaution if you furnish a written document for the transaction. A bill of sale for equipment is enough for the transfer and sale terms or the ownership should any legal repercussions arise from the transaction.
The same document adequately demonstrates to the court should it come to that. There is a wide assortment of equipment in which you can use this document to ensure correct documentation:
- Home Appliances
These include dishwashers, refrigerators, ovens, stoves, washers, dryers, and even small kitchen appliances.
- Outdoor Equipment
These include equipment for lawn maintenance, outdoor grills, and agriculture machinery.
- Power Tools
These include generators, power saws, air compressors, storage solutions, and hand tools.
- Office or Business Electronics
These include printers, photocopiers, scanners, filing cabinets, fax machines, and binders.
- Audio Visual Equipment
These include speakers, receivers, staging equipment, musical instruments, and DJ equipment.
- Hobby Implements
These include equipment for sports, hiking, camping, diving, and fishing.
Bill Of Sale For Equipment
How to write a bill of sale for equipment?
Simply defined, an equipment bill of sale is a document that allows the transfer of equipment or machinery from a seller to a buyer. Aside from being a legal document that governs the transaction, this document acts as a receipt for the item’s purchase.
For the equipment purchase agreement, you and the buyer will provide relevant information and the most important details that are usually featured include:
- Your legal name and address as the seller along with that of the buyer.
- Information on the model, make, serial number, and registration number of the equipment.
- The agreed-upon price. The price should include all of the relevant taxes. If the equipment for sale consists of multiple parts, you must itemize the cost of each part. Indicate the amounts in numerals and words.
- Include the details on the payment methods like cash, credit card, bank deposit, check, and so on. If you and the buyer agree to installment payments, include the details of this agreement.
- The design, size, features, faults, and other relevant information to identify the equipment
- For heavy machinery, you might want to include any special readings.
- The date of the sale.
- Your name as the previous or original owner.
- If applicable, include warranty information.
- Buyer, seller, and witnesses’ printed names and signatures.
- An “As-Is” clause to indicate that the buyer agreed to purchase the equipment in its current condition. This is an essential clause to protect you from any future refunds if the equipment you sold turns faulty.
- If the equipment has any defects or faults, you should disclose these details in the document. It’ll be very irresponsible if you fail to include factual information about the true condition of the equipment.
The buyer should read all of the terms and conditions indicated in the document before they sign it.
Equipment Purchase Agreements
Using the equipment bill of sale
Before a buyer decides to purchase, they might ask you for the serial number of the equipment. From this, they can call the manufacturer to see if the serial number matches the records to verify its authenticity.
This is why it’s important for you to include the serial number when creating an equipment bill of sale. Then you and the buyer can use the equipment of machinery bill of sale for the following:
- To verify information
After the seller verifies the authenticity of the equipment you’re selling, the next thing they will do is to make sure that they’re buying it from the real owner. Again, they can easily verify this by asking to see the original purchase receipt or a bill of sale. If there is any financing involved, the buyer will also need these documents.
- For testing the functionality of the equipment
The next thing the buyer will do is to find out if the equipment works properly – a test can confirm this. If you’re selling a piece of equipment that’s very expensive or one that includes complex machinery, the buyer might hire the services of an expert to do the inspection before purchase.
Although such services can be a little expensive, knowing that the equipment has some damage or is in poor condition can save the buyer money by using such information as leverage for negotiation.
- For creating an advertisement to sell your equipment
When advertising your equipment, make sure you create a comprehensive description of your sale item. This includes identifying information like the year the equipment got manufactured, the name of the manufacturer, the serial number, and the model.
Basically, you want to share similar information as in the heavy equipment bill of sale. You may also want to list all of the specifications associated with the piece of equipment, its dimensions, and any defects or issues it might have.
Include several high-quality photos of the equipment taken in a well-lit environment. Focus on several close-up and angle shots to emphasize the various features or components.
Research on the current values of the same equipment online so that you can come up with a realistic price. You can use popular online shops to establish pricing that’s competitive to your local market.
You may also check your local classifieds for similar pieces of equipment. Provide your updated contact information too, so that prospective buyers can reach out to you.
- For finalizing the sale
There is very little to worry about when you show that you are an authorized seller of equipment. However, if you’re selling equipment on popular platforms, it’s best to consider accepting only cash as the payment option. This lessens the risk of fraud. Also, make sure to bring two copies of the bill of sale – one for you and the other one for your buyer.