BILL OF SALE vs PURCHASE AGREEMENT

Purchase Agreement vs Bill of Sale

PROOF OF OWNERSHIP is the number 1 cause of delay in closing on a boat loan. The OWNER OF RECORD must provide proof that they do in fact have the authority to sell. Title, Registration, Coast Guard Doc.

Depending on the type and details of the sale transaction, the sales agreement may go by a different name: purchase agreement, sales contract or retail installment contract. The basic principles remain the same whether it's a used boat sales agreement or a sale contract for 10 tons of beach sand.

Whatever the name, the purchase agreement is a legally binding contract between a seller/broker and a buyer. The seller contracts to provide something — computer equipment, boat, land for building a factory — at a set price, and the buyer agrees to make the purchase at the agreed-on price.

The purchase agreement/sales contract spells out the relevant terms of the purchase, not just the price and the identity of the parties but also dates, amounts and any warranties or other commitments. It may also include special conditions. (Survey, financing approval etc) It is important to read through any purchase agreement before you sign it, particularly for any major purchase. If you sign without paying attention to the terms, you may find the deal commits you to something you'd prefer to dismiss.

Bill of Sale vs. Purchase / sales agreement

The sales agreement comes before the sale. The "bill of sale" comes when you close the deal.

The "bill of sale" is more likely used when money changes hands. The OWNER OF RECORD signs it to confirm that ownership of the goods has passed to the buyer in return for payment. It may include warranties, and in some states, it will need to be notarized.

The Bill of Sale's Power

Again - The bill of sale requires proof of legal ownership. The entity SIGNING the bill of sale MUST OWN or have AUTHORITY TO SIGN for the items on said bill of sale.  This can be verified through many different documents, depending on the ownership. (Individual, LLC, Corporation, Trust) They may also be executed with a properly formatted and notarized Power of Attorney.