What Is an Alabama Bill of Sale?
An Alabama Bill of Sale (also referred to as a Sales Slip) is a document used when transferring legal ownership of personal property from a seller to a buyer. The buyer may get the title or possession of the property in exchange for money or another item of value. Alabama Bills of Sale are required even if the new owner receives the asset as a gift or donation. It represents a sales contract or agreement, and it is legally binding between the seller and the buyer. Note that bills of sale apply to personal property only, and they are not used for selling real estate. They may be required when registering the items under the buyer's name.
Types of Bill of Sale in Alabama
There are four main types of Bills of Sale in Alabama:
- Alabama Generic Bill of Sale. This is a general bill of sale used when the personal property that is sold is not classified as a motor vehicle, boat, or gun.
- Alabama Vehicle Bill of Sale. This Sales Slip is required when the personal property being transferred is a motor vehicle.
- Alabama Boat Bill of Sale. This one is used when documenting the sale of a vessel.
- Alabama Firearm Bill of Sale. This document is used when the personal property that is being sold is a firearm.
Separate forms for the counties can be downloaded through the links below.
Does Alabama Require a Bill of Sale?
A Bill of Sale in Alabama is required when registering vessels and motor vehicles. On the other hand, the state of Alabama does not require the form when registering a handgun or shotgun when applying for a permit. However, it is recommended to always keep a bill of sale for your personal records, as this document is proof of transfer of the property ownership.
How to Write a Bill of Sale in Alabama?
The state does not provide official government-issued bills of sale that cover all of Alabama. However, many counties have their own forms. Individuals can use basic templates to draft their own Sales Slips as long as they follow certain requirements. In general, to ensure that the Alabama Bill of Sale requirements are complied with, bills of sale must feature the following criteria:
- The document must contain information about the buyer and the seller, including their full names and addresses.
- The document must describe the personal property that is being sold, as well as its purchase price.
- The bill of sale must state any liens or loans on the property.
- If the item being transferred has a serial and/or model number, it must be included.
- The document must show the date, time, and location of the transaction.
- Terms of payment must be stated.
- The form must list any additional terms of sale, such as terms of payment.
- Both the seller and the buyer are required to sign the bill of sale and two witnesses or a notary public must witness the signing in order to prove the authenticity of the document.
- If the bill of sale is required for a sales transaction, then a copy must be provided to the state of Alabama. Also, both the buyer and the seller must keep copies of the document to have proof that ownership of the asset was legally transferred.