The pros and cons of an “as is” bill of sale form.
Explore the benefits and downsides of an “as is” bill of sale for smoother transactions.
We all participate in transactions as we buy and sell items in our everyday life. Some purchases are small, while others are major investments like cars, boats, or homes. These major purchases often come with a bill of sale form. But what is a bill of sale form, and what are the pros and cons of using one when you sell an item “as is”?
What is an “as is” bill of sale form?
What is an “as is” bill of sale form exactly? An “as is” bill of sale form, also known as a quitclaim or no-warranty bill of sale, is like a detailed receipt — but with a special caveat. It doesn’t make any promises about item performance or guarantee a property (like a boat or plane), and it doesn’t have any claims against it. Discover the ways an “as is” bill of sale can benefit you, as well as what to look out for.
When to use an “as is” bill of sale form.
You should use an “as is” bill of sale form to protect both the buyer and seller from disputes after the purchase is complete. By signing an “as is” bill of sale, a buyer agrees to purchase the item — usually a large purchase like a motor vehicle, recreation vehicle, or property — in its current state. They don’t expect the seller to pay for any updates or repairs, and they acknowledge that they have had a chance to inspect their purchase, are satisfied with its condition, and are accepting it. An “as is” bill of sale form is useful when the item is secondhand or in known need of repair.
Pros and cons of an “as is” bill of sale form for sellers.
Sellers can use an “as is” bill of sale to transfer property like a vehicle smoothly — and without having to check that the title or property they’re selling is clear. This means that if there is a lien against the car or boat you’re selling, you aren’t responsible for it once the transaction is complete. An “as is” bill of sale also protects you from claims for repairs after the purchase is complete.
Pros and cons of an “as is” bill of sale form for buyers.
If you’re the buyer, you’re more likely to get a reduced price with an “as is” bill of sale. It also expedites the purchasing process, giving buyers immediate, full ownership of the item sold. It also means that any further repairs or outstanding liens are now the buyer’s responsibility, so be sure you are confident in the quality and background of your purchase.
When to exercise caution with an “as is” bill of sale form.
To sell an item at full asking price, you probably shouldn’t use an “as is” bill of sale. Instead, explore other bill of sale options that include warranty clauses.
Alternatively, if you buy something with an “as is” bill of sale, you might be on the hook for liens or faulty equipment later on. To avoid sticky situations like this, research the item you want to buy beforehand.
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