In Massachusetts, the bill of sale is most commonly used for the sale of motor vehicles and boats, but it’s viable for other goods too. This document is essential for providing evidence of the transfer of ownership of an item.
It includes key information such as the identities of both parties, a description of the items, the agreed-upon sale price, and the transaction date. Lastly, the purchase is finalized with the signatures of both the buyer and the seller on the bill of sale.
The necessity of a bill of sale and its contents vary from transaction to transaction, which is why it’s important to draft this document according to your needs.
Massachusetts Bill of Sale Parties
The seller and buyer are usually people named in the bill of sale as those who take part in the transaction involving specific goods.
The seller is the person who sells the item listed on the bill of sale. The seller can be a private individual or a legal entity.
The buyer is an individual to whom the seller sells the item described in the bill of sale.
Buyer and Seller Disclosure
The state of Massachusetts mandates that sellers of motor vehicles include an odometer disclosure statement that details the total number of miles the vehicle has traveled.
In addition, if the products have specific flaws, the seller should classify them as "as is." This way, since the seller has already disclosed the items' problems to the buyer, the seller will be released from liability if damage results from the declared defects of the goods.
Massachusetts Bill of Sale Description of Goods
As the bill of sale is a confirmation of a transaction, it must precisely identify the purchased subject.
When describing a vehicle, for example, include the following specifics:
The make and model
Year of production
Body type and color
Vehicle identification number (VIN)
The vehicle condition and possible defects
By describing the goods and their condition in this way, you can make a secure purchase and avoid potential disputes.
Massachusetts Bill of Sale Purchase Price
Check out the section below for information on the three most common payment methods.
The most common method of exchanging products is payment, which means that goods are traded for cash. The price can be paid with cash, a credit card, or by transferring money to the account.
Trade as a method of transferring the item implies the exchange of one type of good for another type of good of the same value or an additional payment up to the price of the swapped items.
When the parties have close personal or family relationships, it is not uncommon for the goods to be offered as a gift, in which case the goods are either given for no payment at all or for a payment that is less than their true value.
Massachusetts Bill of Sale for Motor Vehicles (Cars) Requirements
If the vehicle transaction involves a car exempt from titling, the new owner must provide a bill of sale to register the vehicle.
If you want to register a car that was bought in Massachusetts and delivered to another state, a bill of sale or a dealer's invoice is required, along with a signed copy of the delivery letter.
Abandoned or Junk Vehicles
A bill of sale is required for the purchase and transfer of ownership of abandoned or junk vehicles in Massachusetts.
In the bill of sale, it should be specifically stated that state law allows the purchase of abandoned vehicles and vehicle information.
Vehicles Sold by Dealers
A bill of sale is required to register a vehicle purchased from a dealer outside of your state.
Vehicles Sold by Private Parties
To transfer registration and title from a private seller, you'll need either the previous owner's certificate of ownership or, in the case of older vehicles that don't require titles, the prior owner's registration and a bill of sale.
Massachusetts Bill of Sale for Boats (Vessel) Requirements
In Massachusetts, a bill of sale is required to buy and register a boat. However, note that the type of seller will determine the required documentation.
If the vessel is being purchased from a company, the bill of sale must be written on the company's official letterhead. On the other hand, when a new boat is bought from a dealer, the manufacturer's statement of origin must be provided.
However, be sure to also include the following information:
The name, address, and contact information of both the buyer and the seller
The boat's make, model, and year
Hull identification number (HIN)
Date of sale
Signatures of both the buyer and the seller
Massachusetts Bill of Sale for Firearms Requirements
Massachusetts does not require a bill of sale for gun sales, but you must report the sale through the state Bureau of Firearms Records. In that way, the sale is documented and registered.
Keep in mind that once you have completed your firearms transaction form (EFA10), you will no longer have access to the page, so be careful to copy or print it. In addition to the required application, create your own bill of sale for your own records.
The following information must be entered into the portal along with your bill of sale:
The name and address of both the seller and the customer
Description of the firearm, including the make, model, caliber, and serial number
Seller license information
Customer license information
Firearms identification card (FID)
Massachusetts Bill of Sale for Horses Requirements
In the state of Massachusetts, a bill of sale is not legally required for the purchase of a horse. However, it is advisable to make one and provide proof of the transaction.
Massachusetts Bill of Sale for Trailers (RVs) Requirements
According to Massachusetts law, a bill of sale is required for the purchase of trailers.
The bill of sale must include the following elements for it to be considered legally binding:
The date of the sale
The names and addresses of both the buyer and the seller
A detailed description of the trailer, including the make, model, and Vehicle Identification Number (VIN)
The purchase price of the trailer
Massachusetts Bill of Sale Other Requirements
The bill of sale serves as evidence of a sale, so the terms of the sale must be in a language understood by both parties. Any bill of sale submitted to the court must be written in English.
Remember to keep an extra copy of the bill of sale for your records, as it is a legal document that may be required for future transactions or in the event of a dispute.
Massachusetts Bill of Sale Taxes
According to Massachusetts state law, sales tax is charged at a rate of 6.25% of the purchase price and is due by the 20th day of the month following the purchase date.
It is the responsibility of the buyer to pay the sales tax, and failure to do so on time may result in the imposition of late fees. Lastly, the seller must let buyers know about these responsibilities.
It is more likely that you will use an electronic version of the bill of sale when you make a purchase.
Note that a written bill of sale is a valid option as long as it includes all the key information about the transaction.
It is important that both parties sign the bill of sale to make the sale official. This acts as proof of the ownership transfer and as confirmation of their acceptance of the sale's terms and conditions.
On our website, you can find a bill of sale for each type of transaction. So, select the template that matches your desired purchase.
Once you have downloaded the template, you can fill it out with the relevant details of your purchase and make any necessary adjustments to the document.
The use of a bill of sale in a transaction is beneficial to both the buyer and the seller. It ensures that both parties are informed of their rights and obligations in the transaction.