A Kentucky bill of sale is a legal document that serves as proof of a transaction between two parties involving the sale of personal property. It is mostly used for the purchase of vehicles, but also for animals, furniture, and other goods.
Remember to include all relevant transaction details in a Kentucky bill of sale, such as the following:
The parties' names, addresses, and contact information
The goods' condition and description
The purchase price and payment method
A well-drafted bill of sale can help avoid disputes and misunderstandings between the buyer and seller, making the transaction process smoother and less stressful.
Kentucky Bill of Sale Parties
The sale of goods involves two parties—the seller and the buyer
The seller is the party responsible for transferring ownership of their item to the buyer. Following the signing of the bill of sale, the seller is obliged to deliver the item to the purchaser.
The buyer is the person who becomes the new owner of the purchased item after paying the price and completing the transfer procedure.
Buyer and Seller Disclosure
Before the buyer and seller reach a final agreement on the purchase of a certain item, the seller should disclose if the item has any physical or legal flaws. In addition to the oral notification, it is necessary to enter such a disclosure in the bill of sale.
For the additional limitation of the seller's liability, the "as is" clause is often used. It confirms the buyer's consent to purchase the item in its current state, with all defects and flaws.
When the transfer has been completed, and assuming the seller has disclosed details about the item’s damage, the buyer's rights to demand more action from the seller are restricted unless the seller failed to disclose the item’s defects.
Additionally, an odometer disclosure statement should be included with the bill of sale when a motor vehicle is sold or given away.
Kentucky Bill of Sale Description of Goods
This section contains all of the pertinent information about the purchased item, allowing it to be personalized. Of course, it contains different information depending on the subject of the purchase.
Because the bill of sale is, in many cases, used to register a vehicle, vessel, or firearm, failure to enter the mandatory details may result in the rejection of the registration application.
Kentucky Bill of Sale Purchase Price
This section outlines the terms of compensation agreed upon between the buyer and the seller. There are typically three modes of compensation, including:
Payment refers to a direct monetary transaction between a buyer and a seller, where the buyer pays the agreed-upon purchase price in exchange for the item. The parties should specify the payment method as well (e.g., cash, credit cards, checks, etc.).
Trade is a form of compensation where the buyer gives the seller an item of equal or greater value in exchange for the purchased item. The bill of sale should reflect the details of the trade, including the items traded and their value.
Here, the seller voluntarily transfers ownership of the item to the buyer without expecting compensation. The bill of sale should state that the item was given as a gift and the value of the donated item for tax purposes.
Kentucky Bill of Sale for Motor Vehicles (Cars) Requirements
New owners of motor vehicles must register them within 15 days of the date of purchase. However, according to the Kentucky DMV, a bill of sale is not part of the documentation required for vehicle registration.
But for the sake of safety, it is a good idea to fill out this form with the following information:
Names and addresses of the parties
Vehicle make, model, and year
Vehicle identification number (VIN)
Signatures of the buyer and the seller
A bill of sale can be used to get a title for a car that was bought outside of Kentucky if the state where the car was bought gave the buyer a registration or bill of sale instead of a title.
In such circumstances, it is necessary for both the seller and buyer to sign the bill of sale and have their signatures notarized.
Abandoned or Junk Vehicles
In Kentucky, a vehicle is considered abandoned if it is left on public or private property for more than 24 hours without the property owner's permission.
To acquire a title for a junk or abandoned vehicle in Kentucky, the seller must complete a title application and provide a notarized bill of sale.
Vehicles Sold by Dealers
If you purchase a new vehicle from a dealership, you will be given a bill of sale as proof of purchase.
Vehicles Sold by Private Parties
While it is not a legal requirement in Kentucky to provide a bill of sale when purchasing a motor vehicle from a private party, it is recommended to do so to have a record of the transaction as proof of ownership.
Kentucky Bill of Sale for Boats (Vessel) Requirements
When registering your vessel, submit the bill of sale, which should contain information about the parties and the vessel, including the hull identification number. Lastly, the buyer and the seller must both sign the document.
Kentucky Bill of Sale for Firearms Requirements
In Kentucky, firearm owners have no legal obligation to register their weapons. However, when buying or selling a firearm, it is common practice for both parties to document the transaction by entering relevant information in a bill of sale.
Those elements are:
The buyer and seller's personal information
Make, model, and caliber
Firearm serial number
Additional equipment with firearms
Date and signatures of the parties
Kentucky Bill of Sale for Horses Requirements
If you're buying or selling a horse in Kentucky worth over $10,000, you need to create a bill of sale. But even if the horse is worth less than that, it's still a good idea to make a bill of sale just to have everything in writing.
In addition to the horse's breed, sex, and description, ensure that any health issues, if any, are disclosed clearly.
Kentucky Bill of Sale for Trailers (RVs) Requirements
In Kentucky, a bill of sale is not required for the registration of a recreational vehicle. However, complete the bill of sale as proof of the completed transaction.
Kentucky Bill of Sale Other Requirements
In Kentucky, parties can use any language they both understand when creating a bill of sale. However, it's worth noting that official bills of sale provided by state authorities are only available in English.
As mentioned previously, a notarized bill of sale is required when applying for a vehicle title for an out-of-state purchase. Beside that, both the buyer and seller should keep additional copies of the bill of sale along with their own copies.
Kentucky Bill of Sale Taxes
When selling a motor vehicle in Kentucky, the sale price may be subject to state and local taxes, which are based on the selling price of the vehicle. Expect to pay certain registration and title fees, as well.
Kentucky Bill of Sale FAQ
There is no obstacle to a handwritten bill of sale being valid in Kentucky as long as it includes all the necessary elements for its validity.
Both the buyer and seller should sign and date the bill of sale. As we have seen, in some situations, the parties' signatures must be notarized.
To save time, simply download our free templates to make sure your document contains all the necessary elements for a correct and successful transaction.
A bill of sale benefits both the buyer and seller by providing a written record of the transaction, protecting against potential disputes and legal issues down the road.