Bill of Sale Explained
What is a Bill of Sale?
A Bill of Sale is evidence in the form of a legal document that confirms the change of ownership of an item. It specifically reports details in the change of ownership such as the date, place, and sum of money. Bills of sale are incredibly old and have been used for centuries of goods such as dogs, horses, homes and vehicles.
A Bill of Sale’s second main purpose is that it serves as evidence of a contract. When used in the sale of a vehicle, it may need to include certain information on the vehicle such as an odometer reading.
What role does a Bill of Sale have in a Logbook Loan?
As well as handing over the vehicle’s Logbook or V5 Registration Document when getting a Logbook Loan, you will be asked to sign a Bill of Sale agreement. When signed, this states that the lender now owns the vehicle mentioned but as long as repayments are made, the person with the loan will stay in possession of the vehicle.
England and Wales recognises a Bill of Sale by law as well as Northern Island, but Scotland they are not used in Scotland. Lenders will register a Bill of Sale to the High Court. A registered Bill of Sale enables a Logbook lender to repossess the vehicle in the result of failed repayments.
When a loan is fully repaid by a customer, the Bill of Sale that is linked with their loan and vehicle becomes void and is not in effect anymore. The car’s ownership is fully restored to the customer who agreed to the bill of sale and the risk of repossession is eliminated.