Important Terms for a Bill of Sale
- Seller(s): The party or person(s) offering property for sale.
- Buyer(s): The person(s) or the party acquiring property in the transaction.
- Payment: The money given in exchange for the property.
- As-Is: Indicates that the buyer is accepting the property without any warranties or guarantees about its condition.
- Gift: The item is being handed over without any compensation in return.
- Sales Price: The price of the property that both parties have agreed to.
- Odometer Statement: A statement of the vehicle’s mileage, as indicated on its odometer, and that this reading is accurate to the best of the seller’s knowledge.
- Lien: A claim on an asset by a third party that the asset may be used to satisfy a debt.
1. Mississippi Bill of Sale Requirements
A Mississippi bill of sale needs to include details that clearly identify the seller, buyer, and property being transferred. It should also record the details of the transaction itself, such as the price and date. The bill of sale should indicate if the property is being accepted by the buyer in as-is condition. For vehicles, the bill of sale also needs to include the odometer reading.
The signatures of both the buyer and seller are required for the document to have any validity. PandaDoc lets you conveniently collect legal digital signatures online.
Why Use a Bill of Sale?
Although it’s not required for most transactions in Mississippi, a bill of sale can protect both parties. The buyer can use the bill of sale to prove their ownership and the details of the transaction.
The bill of sale can also protect the seller from liability if a dispute arises over an item that was offered in as-is condition. The document also records the date that the seller gave up control of the property, which could become important if the property causes damages to a third party.
Additional Considerations
Language Requirements
The bill of sale should be written in a language that is accessible to all parties. In some cases, that may require a bilingual document. It’s always a good idea to include an English-language translation for officials and state employees.
Number of Copies
The buyer should keep the original and make one copy to give the seller. Two copies are adequate unless a third copy is needed for a state agency.
Junk Vehicles
If you restore a salvaged vehicle and want to register it for operation, you’ll need a notarized bill of sale in addition to the salvage title.
After Purchasing a Vehicle
You have seven days to register a vehicle with the State of Mississippi after the purchase.
You’ll need to visit your local county tax office and bring the following with you:
- The title
- The bill of sale
- Odometer statement (should be on either the title or the bill of sale)
- Identification
2. Mississippi Car (Vehicle) Bill of Sale
A bill of sale is required when applying for a title in Mississippi. Some dealers provide an invoice in lieu of a title, which they stamp with a phrase stating that it is a bill of sale. This is acceptable by the state, as long as it is signed by the seller.
If you’re creating your own bill of sale in Mississippi, be sure to include:
- Buyer and seller’s personal information
- VIN
- Title number
- Vehicle year, make, and model
- Description of the vehicle and its condition
- Odometer reading (note whether the miles are actual)
- Selling price
- Sale date
- Details of any liens, including the name and address of the lienholder
- Signatures
3. Mississippi Boat Bill of Sale
To complete vessel registration, you’ll need a notarized bill of sale or dealer’s invoice in addition to a Mississippi Motor Boat Registration Application.
Include the following elements when you create your bill of sale:
- Buyer and seller’s name and address
- Hull ID and registration ID
- Year, make, and length of the vessel
- Title number
- Whether a trailer is included and, if so, its make and model
- Whether an outboard motor is included and, if so, its make, year, and horsepower
- Odometer reading in hours
- Sale price
- Transaction date
- Details of any liens, including the name and address of the lienholder
- Notarized signatures of all parties
4. Mississippi Firearm Bill of Sale
The firearm bill of sale is used to document a change in ownership of a gun. This documentation acts as proof of ownership for the buyer, and can also help protect the seller from liability after the sale.
Mississippi doesn’t require a permit to purchase handguns or long guns, and there is no required licensing or registration in the state. Some guns are not allowed in some locations, and there are restrictions on gun ownership by people who’ve been convicted of a felony.
The bill of sale for a firearm should include:
- Buyer and seller’s information, including name, full address, date of birth, and driver’s license number
- Date of the sale
- Make, model, and caliber of the firearm
- Serial number
- Purchase price (or indicate if the firearm is a gift)
- Any other conditions of the agreement, such as payment plans or trade agreements
- Signatures, witnessed by a notary
5. Horse Bill of Sale
A bill of sale is important to document the ownership history of a horse. In addition to providing proof of ownership for the buyer, the bill of sale documents the date the seller is no longer responsible for the animal’s care or liable for any injury it might cause.
A horse bill of sale should include:
- Buyer and seller’s information, including name and full address
- The horse’s name and breed
- The dam and sire of the horse
- Description of the animal (coloring, height, markings)
- Any known defects or injuries
- Date of veterinary exam, or note that the buyer and seller have both waived an exam
- Selling price
- Date of the sale
- Signatures of both parties
It’s a good idea to include a statement over the seller’s signature certifying that they have disclosed all known defects, injuries, or health issues of the animal. Notarizing the form is optional but recommended.
6. General Bills of Sale
Any large purchase — such as antiques, art, collectibles, computers, or sporting equipment — can be recorded using a bill of sale.
Your document should include:
- Buyer and seller’s name and address
- A description of the property with any identifying serial numbers or information
- Any known defects or damage to the property
- A statement that the property is being sold in “as-is” condition if the seller isn’t willing to accept returns
- Sale price agreed upon by all parties
- Date of the transaction
- Any liens, including the name of the lienholder
- A signed statement by the seller that they have disclosed all known defects, damages, or other issues (unless the property is offered in as-is condition)
- Signatures of both parties
