Important Terms for a Bill of Sale
- Property location: This describes the location of the property being sold.
- Seller: This includes the seller or sellers’ identifying information like name and address.
- Buyer: This includes the buyer or buyers’ identifying information like name and address.
- Sales tax: This section lists the amount of sales tax included in the sale, if any.
- Property: This section describes the property and any special conditions that apply. For vehicles, this is where the VIN, odometer reading, and other identifying information is listed.
- Witness information: This section includes witness information. The witness can be a public notary or two parties agreed upon by the buyer and seller.
- As-is: When a buyer agrees to purchase an item “as-is,” they agree to buy the property in its current state.
- Gift: When property is gifted to the buyer, there can be tax implications in the following year.
- Certification/Signature: The buyer and seller must sign the bill of sale to create a binding agreement. Signatures can be made in person or digitally through a certified digital signature provider. PandaDoc documents can be signed digitally.
1. Arkansas Bill of Sale Requirements
Although not required for all purchases in Arkansas, a bill of sale offers invaluable protection from potential legal disputes. To be legally-binding, your bill of sale must adhere to the requirements set forth by the state of Arkansas.
The Arkansas Office of Motor Vehicles (OMV) administers registrations and titles for vehicles and vessels (boats). The agency requires a properly completed title instead of a bill of sale for most property transfers.
A bill of sale is only required by the OMV when:
- There is no more room on the title for the seller to sign
- The seller applies for the vehicle sales tax credit and must prove that the vehicle was sold 45 days before or after they acquired a new vehicle
Why Use a Bill of Sale?
A bill of sale documents a private transaction and can serve as legal proof that both the buyer and seller agreed to terms of the sale.
As long as both parties fill out the form correctly and adhere to the regulations laid out by the state of Arkansas, the bill of sale document can be used as evidence in court.
Bills of sale can add legitimacy to a deal and make it less likely for a dispute regarding ownership or condition to arise in future. Both parties must consider the transaction carefully as they complete the form.
The OMV only provides bills of sale forms in English. The state does not provide translation services — if you’re not a fluent English speaker, you may need to work with your own interpreter.
A bill of sale can be completed in any language — as long as each party understands their copy of the document. However, a bill of sale must be in English to be filed by the state.
Number of Copies
The buyer and seller should each have a copy of the bill of sale for their records. When a bill of sale is required for a transaction, a copy must be provided to the Arkansas OMV.
In Arkansas, a bill of sale can include junked vehicles, provided the seller lists the vehicle they are selling as “salvage” or “junk” on the form.
After Purchasing a Vehicle
To register a vehicle in Arkansas, you’ll need to produce paperwork in addition to the bill of sale.
The Seller Must
- Provide a properly signed title to the buyer, or a bill of sale in its place.
- Include an Odometer Disclosure Statement Form (Form 10-313) on vehicles less than ten years old.
The Buyer Must
- Title and register vehicles within 30 days of purchase.
- Purchase Arkansas insurance that meets the state’s minimum requirements before registration
- Fill in and take the title application/vehicle registration (Form 10-381) to a local state revenue office
- Bring the Odometer Disclosure Statement form for vehicles less than ten years old
2. Arkansas Car (Vehicle) Bill of Sale
A bill of sale can offer peace of mind and protection when purchasing or selling a vehicle in Arkansas.
You’ll need to include basic personally identifying information on a bill of sale for a motor vehicle: name, address, and driver’s license numbers for both buyer and seller. You’ll also need to indicate if the seller included the title at the time of sale. Next, you must supply the following information about the vehicle:
- Odometer reading
A motor vehicle bill of sale in Arkansas must include specific information about the purchase price or trade, including:
- How much the buyer paid for the vehicle
- When it was purchased
- The date the bill of sale was entered into
- The final payment due date — if the buyer is paying in installments
The buyer or seller should also include other terms and conditions that apply to the transaction. The Arkansas Department of Finance and Administration provides a blank bill of sale for vehicles claimed as tax credit towards the purchase of a replacement vehicle.
3. Arkansas Boat Bill of Sale
A bill of sale for a boat in Arkansas must include personal information: name, physical address, and the driver’s license or state ID number for both buyer and seller. You will also need to provide the following information about the boat:
- Proof of ownership (current registration or a bill of sale from a previous transaction)
- Hull ID number
- The amount of sale
The Arkansas Department of Finance and Administration provides a detailed guide on Motor Boat Registration and proof of ownership.
You’ll also need to specify whether a trailer is included in the purchase for sales tax purposes. If a trailer is part of the sale, list the make and year on the bill of sale, or prepare a separate form.
4. Arkansas Firearm Bill of Sale
You don’t need a bill of sale to buy or sell a firearm in Arkansas. If you do opt to use one, you’ll need to include identifying information of the buyer and seller: names, physical addresses, and driver’s license or state ID numbers. You should supply the following information about the firearm:
- Serial number
- Any defects present
- Purchase price
The bill of sale should list the final payment due date and any down payment if the seller doesn’t collect the entire payment at the time of the transfer.
To add authority to an Arkansas firearm bill of sale, you can have the buyer and sellers signatures’ witnessed or notarized.
5. Arkansas Horse or Livestock Bill of Sale
The state of Arkansas doesn’t require a bill of sale for a horse or livestock sale. However, you should consider completing a bill of sale to document the transfer of ownership.
6. Arkansas Aircraft Bill of Sale
The state of Arkansas does not offer a statewide aircraft bill of sale. Aircraft sales in the US must comply with Federal Aviation Administration (FAA) regulations. You can use an FAA aircraft bill of sale to complete the purchase.
7. Arkansas General Bill of Sale
In Arkansas, you can use a general bill of sale to document the transfer of ownership of different types of personal property. For example, clothing, yard equipment, or a private book collection.
If you’re using a general bill of sale, you’ll need to include identifying information for the buyer and seller: full names, addresses, and driver’s license or state ID numbers. You should also describe the property you are selling, such as:
- Serial or model number
- Physical description
- Condition of the property
- Whether the property is a gift with no cost attached
It’s a good idea to include the sale price, the date the bill of sale was created, and the due date if the buyer hasn’t paid in full, and any other terms or conditions.
8. Arkansas Tax Credit for Replacement Vehicle Bill of Sale
In Arkansas, a buyer can access a special tax credit if they’re purchasing a vehicle to replace one they’ve sold. The tax credit is only for 45 days.
You don’t need to supply a bill of sale to apply for the tax credit, but it documents the sale details. You should include the buyer and seller’s identifying information as well as the following details about the replacement vehicle:
- Decal number
- VIN or serial number
- Body style (for snowmachines)
- Date of sale