A bill of sale in the United States is one of the legal forms that occurs when one person (or entity) sells a certain thing to another. Each state proposes its own norms and templates of the bill of sale form. Templates also vary for different objects of the deals.
What is a Bill of Sale in Colorado?
A Colorado bill of sale form is a legal document that contains specific data and serves various purposes. First of all, it proves that the deal has closed, and the item is really sold. Also, with a bill of sale, an owner of the sold item transfers his or her right to operate the item to another individual (who has purchased the item).
It does not matter what is being sold; the information included in the document normally has to describe:
- Parties that conduct a sales transaction
- Item’s description
- The price that both parties approved
- The date when the deal was closed.
Colorado Bill of Sale Types
There are four common types of a bill of sale in the US, including Colorado:
- Bill of sale for vehicles
Lots of people in the US sell and buy cars and other vehicles from previous owners. A bill of sale is usually needed to transfer the rights to the new owner and register the vehicle.
- Bill of sale for vessels
As well as a bill of sale for vehicles, a bill of sale for vessels is normally required when registering a boat.
- Bill of sale for guns
In many states, registration of firearms is not mandatory. However, a bill of sale will protect you as a former owner if a gun you have sold becomes a part of a crime.
- General bill of sale
You may complete and sign a Colorado bill of sale form for any other item. It becomes especially handy when selling (or purchasing) technically complex goods or household appliances. For instance, you and another individual may sign such a form when the deal is tied to selling a TV or a camera.
Why Do I Need a Bill of Sale?
As we have stated above, there is a couple of reasons to create and sign a bill of sale when conducting sales transactions.
In some cases, a bill of sale may defend a previous owner of the sold item in court. For instance, if you have sold a rifle, and a new owner has shot someone.
The same applies to selling a car: a new owner can hit somebody, and a former owner may show a signed bill of sale to prove that he or she cannot operate that car anymore.
Also, without a bill of sale, you cannot complete the process of registration for vehicles and boats in some states.
Colorado Laws and Requirements
In the majority of cases, you should complete a bill of sale in accordance with the rules created by certain public authorities.
For example, in Colorado, you are required to submit a bill of sale when registering a vehicle, as prescribed by the local Department of Revenue (Division of Motor Vehicles, or DMV). A bill of sale for a vehicle in Colorado does not require notarization.
When creating such a paper for a vessel or a snowmobile, you have to learn about the regulations provided by the Colorado Parks and Wildlife Office.
Do I Need to Have a Bill of Sale to Register a Vehicle, Watercraft, or Firearm in Colorado?
If you are registering a vehicle in Colorado, you have to submit a bill of sale among the provided documents.
For a watercraft registration process in Colorado, you may skip this document submission. However, you might need it to use your watercraft until the completion of the registration process (but only for 30 days).
Because there is no need to register a gun in Colorado, you will need a bill of sale not for the registration but for proving ownership transfer.
Creating a Bill of Sale in Colorado
As you already know, there are certain details you should include in every bill of sale you create. Even though the items we sell and buy differ, the information you provide in this paper has to contain the following:
- Personal details of both deal parties
Usually, both the one who is selling and the one who is purchasing should write their names and addresses. Sometimes people also include their contact details: phone numbers and email addresses.
- Description of the item
Here, you have to describe the item you are selling (or purchasing). For the majority of items, you will have to add the make and model (or type), year of production, and serial number, which is unique (VIN for vehicles, HIN for boats, and so on). For a gun bill of sale, you should include the caliber. For a boat bill of sale, you may add the length of the boat.
- The price of sale
Every bill of sale should contain the details about the price of sale. Write it in US dollars.
- Signatures and the date of sale
Normally, both parties should sign a bill of sale to make it valid. The exact date of sale is also needed. Keep in mind that in some states, you have to notarize a bill of sale.