Important Terms for a Bill of Sale
- Property location: This specifies the location of the item being sold, which can be especially important if the item is in a different state.
- Seller: This includes the seller’s information, such as name and address. It can also list any additional sellers.
- Buyer: This specifies the buyer’s information and can list any additional buyers.
- Sales tax: This specifies whether sales tax will be included, how much it will be, and whether or not it is included in the price.
- Property: This section includes the date of the property transfer as well as any special conditions to the sale like “under warranty” or “as-is.” The VIN, plate number, and odometer reading for vehicles are listed here.
- Witness information: If a witness is present to sign the bill of sale, their full name, address and other contact information will be listed here. The witness can be either a public notary or a party agreed upon by the buyer and seller.
- As-is: This term means that the buyer is agreeing to purchase the item in its current state at the time of sale. By signing a bill of sale agreeing to purchase something as-is, the buyer is agreeing that they’ve had the opportunity to inspect the item and found it to their satisfaction.
- Gift: This identifies whether the item is being given as a gift to the recipient, which will be important for tax purposes the following year.
- Trade-In: In the event that one item is being traded for another, this section of the bill of sale will verify that the two items are equal in value.
- Certification/Signature: The signature of the seller and/or buyer, depending on the form, finalizes the transfer. In-person signatures are always valid. A certified digital signature provider is required for digital signatures to be valid. PandaDoc documents offer the option for legal digital signatures.
1. Nebraska Bill of Sale Requirements
While drafting a bill of sale is good standard practice for the purchase of many big-ticket items, they are required for the purchase of boats and motor vehicles in the state of Nebraska. You can use the form the state of Nebraska provides, or you can draft your own.
If you do decide to draft your own bill of sale, be aware that there are a number of requirements you need to satisfy in the state of Nebraska.
Why Use a Bill of Sale?
Besides satisfying state legal requirements, a bill of sale can prove useful for several other reasons. It provides proof of ownership for the buyer, which can help avoid legal disputes. For the seller, a bill of sale can protect them from liability concerns over how an item is used after the sale.
You may create your own bill of sale in any language you choose, but bill of sale forms from the Nebraska government are only provided in English.
Number of Copies
It’s a legal requirement to provide a copy of the bill of sale for a motor vehicle transaction to the state Department of Motor Vehicles (DMV). The buyer and seller will also want to retain a copy, so a total of three copies would be required in these cases.
For all other transactions, it’s enough for the buyer and the seller to each keep a copy.
In the state of Nebraska, when a vehicle is totaled, the owner must surrender the title and assign it to “JUNK.” The title is then destroyed and cannot be returned to active status.
After Purchasing a Vehicle
The bill of sale is not enough to complete a vehicle transfer in Nebraska. Several additional documents are required before the transaction can be considered official.
If You’re the Seller
Sellers must provide the buyer with a bill of sale and complete the Application for Certificate of Title. If the title has been lost, Nebraska residents can apply for a duplicate title.
On the title application, sellers must provide an Odometer Certification.
If You’re the Buyer
Buyers have 30 days to title and register their new vehicles in Nebraska. To complete the registration process, buyers must provide a:
- Vehicle title
- Bill of sale
- Application for Certificate of Title
- Proof of insurance
- Registration and titling fees
Buyers must also pay sales tax on their vehicles before the transfer is complete. Sales tax is based on the amount shown on the bill of sale as well as the current fair market value for the vehicle.
2. Nebraska Car (Vehicle) Bill of Sale
It’s important to get or give a bill of sale when buying or selling an automobile in Nebraska to avoid being defrauded during the process. The State of Nebraska provides an official summary of the buyer and seller responsibilities during motor vehicle transfer of ownership.
While the bill of sale doesn’t constitute ownership on its own — only the title can do that — it does provide proof of transfer of the title. This proof is helpful for your records and important for resolving tax issues, should they arise, or even when dealing with legal disputes and civil matters at the DMV. You can find the official template for a motor vehicle bill of sale here.
3. Nebraska Boat Bill of Sale
The process for completing a boat or vessel transaction in the state of Nebraska is similar to the transfer of ownership process for other types of vehicles. The category of “vessel” includes motorboats, sailboats, and jet skis. While dealers will often take care of the paperwork for you, private sales will require you to assemble some forms on your own.
Vessel bills of sale are required to be notarized by a notary public and include contact information for both the buyer and seller, as well as information about the vessel. You can find the official template for a boat bill of sale here.
4. Nebraska Firearm Bill of Sale
In Nebraska, firearm bills of sale require more personal information about the buyer and seller than some other types of bills of sale. Both the buyer and seller will have to provide their driver’s license numbers in addition to their names and addresses in order for the state to maintain a record of firearm sales.
It is highly recommended that all firearm transactions produce a bill of sale to have an accurate record of where and when the firearm was purchased. It is illegal under federal law for Nebraska residents to sell firearms outside of the State of Nebraska.
Firearm bills of sale also require the buyer to assert that they do not meet any of the disqualifiers for owning a firearm, such as a history of violence, a criminal record, or certain records of mental health disorders.
5. Nebraska Livestock Bill of Sale
Livestock bills of sale in Nebraska include information on the livestock, including:
- Registration number
They also include the number of animals if they are sold in large amounts.
6. Nebraska Aircraft Bill of Sale
Aircraft bills of sale in Nebraska include the make, model, and year of the aircraft, as well as registration and serial numbers. Aircraft sales in the State of Nebraska use the aircraft bill of sale form from the FAA (Form AC 8050-2).
7. Nebraska General Bill of Sale
A general bill of sale is used to prove the purchase of any non-regulated item. The information required is often the general and bare minimum information that is required in any bill of sale:
- Purchase price
- Contact information