Bill of Sale and Deed are two commonly used legal documents that facilitate the transfer of ownership. Both of these serve the purpose of transferring property or goods from one party to another. However, these documents cater to different types of transactions and have distinct legal implications. If you wish to buy or sell property or goods, it is important to understand the differences between these two documents. Here are the top 3 differences between a sample bill of sale and a deed.

1. Purpose

The primary difference lies in their purpose. A bill of sale is primarily used for the transfer of personal property, such as vehicles, machinery, or other tangible items. It acts as proof of purchase and outlines the details of the transaction.

In contrast, a deed is specifically used for the transfer of real estate or immovable property. Deeds are formal documents that provide a legal description of the property being transferred.

2. Types of Property

Bills of sale are used for personal property. Personal property includes items like cars, boats, and equipment. However, deeds are reserved for real property – which refers to land and anything permanently attached to it, such as buildings or fixtures.

This distinction is crucial while determining which document to use based on the nature of the transaction.

3. Legal Requirements

The legal requirements for creating a bill of sale and a deed also differ. A simple bill of sale in Missouri can often be a simple document, sometimes just a receipt. It usually includes the names of the buyer and seller, a description of the item, and the sale price.

On the other hand, a deed must meet specific legal requirements, including being in writing, signed by the grantor, and often notarized to be considered valid. Also, deeds may have to be recorded with a local government office to provide public notice of the property transfer.

Both bill of sale and deed facilitate the transfer of ownership. However, these differ significantly in various ways. It is essential to understand these differences for anyone who is involved in buying or selling properties or goods.

Author Bio

Carl writes often about legal drafting, rental & commercial lease agreements, power of attorney, Bill of Sale and help the people in such document needs. Discover more about bill of sale in Oklahoma by reading this blog here.