The Utah bill of sale is a document that outlines all the important details about the personal property ownership transfer. This document is signed between the transferor and the transferee, also called the seller and buyer.
The bill of sale form is very flexible. Its content mostly depends on the type of transferred item and the nature of the ownership transfer. However, most of the bills of sale contain the following elements:
Mandatory Information
Information about the parties
Details about the transferred item
Purchase price and method of payment
Parties disclosures
Signatures of the parties
Utah Bill of Sale Parties
The main parties to the bill of sale are the transferor and the transferee. However, in most of the bills of sale, they are referred to as the seller and the buyer.
Seller
A seller is a party to the bill of sale who transfers the ownership of their personal property to the buyer. In the case of co-ownership, more than one seller can be listed in the bill of sale.
Buyer
A buyer is a person who pays the purchase price and obtains ownership of the seller’s item in exchange. There can be more than one buyer listed in the bill of sale.
Buyer and Seller Disclosure
The seller should inform the buyer about any flaws or damages to the transferred item.
These damages and flaws should be described in detail and included in the bill of sale. This way, the seller protects themselves from any buyer’s claims regarding the item’s condition.
In addition, the seller should include the “as is” condition. This means that the buyer agrees to buy the item without any guarantees regarding the item’s condition.
Utah Bill of Sale Description of Goods
This section must include all the relevant information about the transferred item. What is considered relevant mostly depends on the type of item.
For example, the relevant information for the motor vehicle description includes:
Mandatory Information
Make, model, and production year of the vehicle
Vehicle Identification Number (VIN)
Body type and color of the vehicle
Vehicle horsepower
Registration number (if applicable)
Odometer disclosure
Details about damages and flaws of the vehicle
Information about the vehicle’s additional equipment
If you are drafting a bill of sale for any other type of item, you should include all the information that will differentiate the item from others of its kind. If available, this section should always include the item's identification or registration number. If not, a detailed description of the item will also do.
Utah Bill of Sale Purchase Price
This section describes the amount and method of compensating the seller for transferring the item to the buyer. Below are the three most commonly used ways of compensation.
#1. Payment
With payment, the buyer transfers a certain amount of money to the seller in exchange for the purchase price. This method is the most commonly used one. The payment can be made in several ways, namely:
Forms of Payments
Cash
Credit or debit card
Checks
Bank transfer
#2. Trade
With the trade, the buyer transfers one of the items in their possession in exchange for the seller’s item. Since there is often a difference in value between the two items, one party needs to pay additional money to cover the difference in value. This method is often used in motor vehicle purchases.
#3. Gift
If the item is transferred as a gift, the transferee is not obliged to compensate the transferor. This method is often used for transferring ownership between family members.
Utah Bill of Sale for Motor Vehicles (Cars) Requirements
To operate a motor vehicle in Utah, you must title and register it at the Utah Division of Motor Vehicles. When doing so, you should submit the bill of sale as proof of motor vehicle purchase and ownership in case the vehicle title is not available.
Out-of-State Vehicles
If you purchase an out-of-state vehicle, you must title and register it in Utah within 60 days. To get a Utah title, you must submit a TC-656 title application form and provide a safety and VIN inspection certificate.
Abandoned or Junk Vehicles
Vehicles that were damaged still keep their titles in Utah. However, Utah classifies this title as “branded.” A seller must disclose to the buyer that the title is branded before the purchase.
Vehicles Sold by Dealers
A dealer is authorized to apply for the vehicle's title and registration on your behalf. Until you get the vehicle title in your name, you can still use the bill of sale as proof of ownership.
Vehicles Sold by Private Parties
The private parties can use the bill of sale to define all the details about the motor vehicle ownership transfer, protect their rights, and prevent any misunderstanding.
Utah Bill of Sale for Boats (Vessel) Requirements
With few exceptions, every watercraft made after 1984 must be titled to be operated in Utah.
Although not required for the watercraft titling and registration in Utah, the parties can draft a boat bill of sale to provide the additional details not included in the title.
Utah Bill of Sale for Firearms Requirements
Every firearm transaction in Utah should be recorded on the bill of sale. In that way, the parties protect their rights and limit their liability.
For example, if the firearm is used in some illegal activities, the seller can use the bill of sale as proof that the firearm was not in their possession at the moment it was used.
Utah Bill of Sale for Horses Requirements
A horse bill of sale in Utah should include the following:
Mandatory Information
Information about the seller and buyer
Horse name and breed
Age and gender of the horse
Registration number (if applicable)
Disclosure about the horse’s overall condition
Information about any additional equipment that comes with the horse
Utah Bill of Sale for Trailers (RVs) Requirements
Every trailer operated in Utah that weighs more than 750 pounds must be titled and registered, except those that are owned and operated by non-residents of Utah or owned and operated by the United States government.
When it comes to campers, titling is optional for any model made before 2015.
Utah Bill of Sale Other Requirements
The bill of sale can be made in any language that both parties can understand. However, when applying for the title and registration, make sure you provide the English version of your bill of sale or submit the official English translation.
When drafting the bill of sale, have at least one copy for the seller, buyer, and the governmental agency in charge of the item’s titling and registration.
Utah Bill of Sale Taxes
Sales and use tax are calculated based on the purchase price. If your title doesn’t contain the purchase price or there is no title available, the bill of sale can be used as proof of the purchase price.
Even when the item is transferred between family members, the sales tax is due. Therefore, even if you are transferring the item to the family member as a gift, your bill of sale should still include the estimated purchase price.
Utah Bill of Sale FAQ
Your handwritten bill of sale is also considered legitimate in Utah as long as it contains all the necessary elements and details.
A bill of sale should be signed by the transferor, or seller, and the transferee, or buyer. Both parties can authorize a third person to sign the bill of sale on their behalf by issuing a valid power of attorney.
For certain types of items, like motor vehicles, the governmental agency in charge of the registration issues a bill of sale form that can be filled out and signed by the parties. However, if you wish to transfer some other type of item, the easiest way is to download one of the bill of sale templates available on our website.
Both the seller and the buyer benefit from signing the bill of sale. Sellers can use the bill of sale to protect themselves from liability after they transfer the item to the buyer. The buyer benefits from the bill of sale by having proof of ownership of the item.