Important Terms for a Bill of Sale
- Property Location: This section lists the address or other coordinates of the property being sold on a bill of sale.
- Seller: The contact information, such as name and address, of the person or party transferring ownership of a property in exchange for some value.
- Buyer: The contact information, such as name and address, of the person receiving ownership of the sold property.
- VIN: A unique identification number assigned to a motor vehicle when it is manufactured. This number is often printed inside the door frame, although the location can vary depending on when a vehicle was made.
- Property: This section describes the property being transferred and any special conditions that apply. This is where the make, model, year, VIN, odometer reading, and other identifying information are listed for vehicles.
- Witness Information: This section includes information about any witnesses to the signing of the bill of sale.
- As-Is: When a buyer agrees to purchase an item “as-is,” they agree to purchase the property in its current state at the time of sale with no guarantee or warranty.
- Gift: When a property is gifted, there can be tax implications for the buyer in the following year. This rule of thumb mostly applies to vehicles and other large purchases.
- Certification/Signature: The buyer and seller must sign and date the bill of sale to finalize the transaction. Signatures can be made in person or digitally, through a certified digital signature provider. PandaDoc documents allow users to gather legal digital signatures.
1. Kentucky Bill of Sale Requirements
The Commonwealth of Kentucky does not require a completed bill of sale to register a vehicle in most cases. Kentucky has unique requirements for bills of sale used for the sale of horses. For most other sales between two private parties, you will not need an official bill of sale.
Why Use A Bill of Sale?
It’s a good idea to fill out this form even when it isn’t required by state law. It officially documents ownership and transfer of the property and can serve as a receipt of the transaction, providing protections to both buyer and seller. Filling in the form can add transparency to the transaction, giving both parties peace of mind.
Additional Considerations
Language Requirements
Kentucky does not provide bills of sale in languages other than English. Since the state does not provide translators, you’ll need to find your own interpreter if you are not fluent in the English language.
Buyers and sellers can complete a bill of sale in another language as long as both parties understand their individual copy of the document.
Number of Copies
In circumstances where you are required to provide a bill of sale, you must provide a notarized copy to the Commonwealth of Kentucky. It’s always a good idea to make copies of bills of sale for buyers and sellers, as well.
Junk Vehicles
To obtain a rebuilt vehicle title for a junked vehicle in Kentucky, a bill of sale and the seller section of form TC 96-182 must be completed and notarized. You will need a rebuilt title to register the vehicle in Kentucky.
After Purchasing a Vehicle
Once a transaction is complete, the vehicle will need to be registered in the buyer’s name. Each party has a role to play in completing this process.
For Sellers
In Kentucky, the seller must sign the title over to the new owner by filling in fields on the back of the title. The title must include the odometer reading at the time of the sale and the purchase price.
For Buyers
Buyers have 15 days to register a new vehicle in Kentucky. To complete registration, buyers must appear in person at their local county clerk’s office with:
- A finalized bill of sale
- A correctly transferred certificate of title. Any title distributed before February 2000 will require an Application for Kentucky Certificate of Title/Registration Form TC 96-182.
- Proof of an active Kentucky auto insurance policy
- The completed title, signed by previous owner with odometer reading, sales price, and valid seller’s signature
- A copy of the current registration
- Odometer disclosure, if the vehicle is less than ten years old
- Fees for registration, title, and sales tax
2. Kentucky Car (Vehicle) Bill of Sale
To register a vehicle in Kentucky, you are not required to provide a bill of sale. However, it is still a good idea for buyers and sellers to complete this form. A bill of sale can establish proof that the transaction has taken place and that the property has been transferred from the seller to the buyer.
When you fill out a bill of sale for a vehicle in Kentucky, you should include basic information about the buyer and seller and descriptive information about the vehicle. Information you can list includes:
- Contact information for buyer and seller
- Vehicle make (manufacturer)
- Model
- Year
- VIN
- Color
- Odometer reading
You can also have the bill of sale witnessed and stamped by a notary. This can provide additional peace of mind for both the buyer and the seller.
3. Kentucky Boat Bill of Sale
While you are not required to provide a bill of sale to register a boat in the state of Kentucky, except in cases where a title is not available, you should still consider completing one. A boat bill of sale can help to establish ownership. When you fill out a boat bill of sale, you should include:
- Buyer and seller contact information
- Make or manufacturer
- Year
- Hull ID number
- Registration number (if previously registered)
- Odometer (hours)
- Description of any included trailers or motors, including year, make and the motor’s horsepower
4. Kentucky Firearm Bill of Sale
Kentucky does not register firearms or require gun owners to be licensed unless they want to carry a concealed weapon. Still, when buying or selling a gun in Kentucky, you should complete a bill of sale and, ideally, have it notarized. The bill of sale can prove ownership of the gun later. A firearm bill of sale should include several pieces of information about the property and the sale:
- Buyer and seller contact information
- Caliber
- Make
- Model
- Serial number
- Any defects present
- Purchase price
- Description of accessories, such as a holster or case
5. Kentucky Horse or Livestock Bill of Sale
Kentucky law establishes the requirements for buying and selling horses between private parties in Kentucky. Livestock, however, can be sold with a general bill of sale.
The equine bill of sale statute requires you to complete a bill of sale when buying or selling a horse for more than $10,000 in Kentucky. However, it is always a good idea to complete a bill of sale when buying or selling a horse, no matter the value.
You’ll need to provide the following information about the horse, buyer, and seller in your bill of sale:
- Buyer and seller contact information
- Horse’s registered name
- Horse’s barn name
- Breed
- Sex
- Registration number
- Description of the horse, including color and markings
- Horse’s DOB
- Information about the horse’s sire and dam
- Transfer of breeding rights
- Information about accessories or supplies sold along with the horse
6. Kentucky Aircraft Bill of Sale
Kentucky does not provide state-issued bills of sale for aircraft. All aircraft sales in the U.S. must comply with Federal Aviation Administration (FAA) regulations. The FAA aircraft bill of sale must be completed to comply with federal law.
7. Kentucky General Bill of Sale
You can use a template for a general bill of sale in Kentucky to record almost any sale between two private parties. The state does not provide an official general bill of sale.
When you fill in a general bill of sale, you’ll need to include the buyer’s and seller’s contact information. You should also describe the property being transferred. Other information you may want to document on a general bill of sale includes:
- Serial or model number
- Color
- Size
- Physical description
- Condition of the property
- Date of sale
- Whether the property is a gift
You can also include the sales price or details of a trade agreement between the buyer and seller. If money will still be owed to the seller after the property changes hands, the bill of sale should list the due date.
