Writing A Receipt For A Private Sale: 7 Steps To Follow

If you need to sell an item, it?s essential to follow the correct steps before you transfer it. One of the critical parts of selling an item is knowing how to write a bill of sale document and understanding the essential sections your receipt for a private sale should feature.

Although this process may seem complex, there are a few steps you can follow to quickly write a receipt for a private sale. Check this article to find out how to write a receipt for a private sale in 7 steps.

What Are Sales Receipts, And What Are They For?

Sales receipts or bills of sale are documents that reflect a transaction from one person to another. You can use sales receipts if you sell items as part of a private sale, including motor vehicles, trailers, livestock, or boats.

When Shouldn?t You Use A Sales Receipt?

You shouldn?t use a sales receipt if you are purchasing or selling real estate, documenting a business sale, or showing the sale of shares. In these cases, you should use a purchase agreement, a purchase of the business agreement, or a share purchase agreement.

How Important Are Sales Receipts?

Sales receipts are vital because they prove that someone has paid for and received something you are selling. They show the date that you sold the item, the terms under which you sold the item, or whether you sold the item as seen.

7 Steps To Follow For Writing A Receipt For A Private Sale

So, how should you write a receipt for a private sale? Here are seven steps you can easily follow to write a sales receipt.

1. Select the required document

The private sale receipt you create should match the item you sell, so begin by selecting the required document. There are various receipt types for private sales, such as trailer, boat, livestock, and vehicle receipts.

2. State the name of the buyer and seller

On the document, ensure that you specify the names of the person buying and selling the item. You should also include their addresses and state whether you will jointly own the item.

3. Describe the item you are selling in detail

In the receipt of the sale, describe the features of the item you are selling in detail. For example, if you are selling a motor vehicle, describe the color, make, brand, mileage, license plate number, and vehicle identification number.

4. Provide information related to the transaction

Describe the essential information related to the transaction. You should first mention the payment method (for example, state whether it was by check or cash). Then note whether the payment is a one-time payment, or the buyer will pay in installments.

5. Specify the payment details

Other payment details you should include are the item’s sale price and any Value Added Tax that applies to your sale.

6. State whether any guarantees or warranties apply to the sale

You can state whether any warranties apply to the sale or whether you are selling the item ?as is.? You can also use a sworn statement to state that the item you are selling works correctly and has no liens, which means that you are selling your item in its current condition.

If you sell an item ?as is,? you are protected from taking responsibility for any issues related to the item you sold.

7. Include a part that describes how you will transfer the item

Mention the item’s current location and how you will transfer it to the new owner. For example, if you are selling livestock, explain the mode of transportation you will use to transport the animals.

Who Should Sign And Keep a Sales Receipt?

If the item you sell is a vehicle, you and the seller should sign the sales receipt. If you are selling other items, such as furniture, your buyer does not have to sign the receipt ? but you do.

The buyer and the seller must keep signed copies of your sales receipt to ensure you retain a record of the sale and transfer of ownership.

Writing Receipts For A Private Sale: What To Remember

Although writing receipts for a private sale may require a few steps, remember that there are different types of receipts for different items.

It is essential to sign the receipt and get your buyer to sign it if you are selling a vehicle, and always retain a copy of the receipt after you have sold the item. Use this article’s seven steps to write a receipt for a private sale and complete your transaction quickly.

Read Also:

• Which Of The Following Payment Types Require You To Pay Upfront?
• 5 Processes That Can Be Integrated With Enterprise Resource Planning
• 7 Important Tax Tips for Small Businesses