Bill of Sale (Alabama)

BILL OF SALE

State of Alabama

Date of Sale: [__/__/____]

Bill of Sale Number / Reference: [________________________________]

SECTION 1 — PARTIES

1.1 Seller Information

1.2 Buyer Information

SECTION 2 — DATE AND LOCATION OF SALE

Date of Sale: [__/__/____]

Location of Sale (City, County, State): [________________________________], [________________________________] County, Alabama

Time of Sale (optional): [________________________________]

SECTION 3 — DESCRIPTION OF GOODS / PROPERTY

3.1 Type of Property

☐ Motor Vehicle
☐ Watercraft / Boat
☐ Trailer
☐ Machinery / Equipment
☐ Furniture / Household Goods
☐ Electronics / Technology
☐ Livestock / Animals
☐ Business Assets / Inventory
☐ Other Personal Property: [________________________________]

3.2 Detailed Description of Property

For Motor Vehicles:

For Watercraft:

For Other Personal Property:

3.3 Accessories, Attachments, and Included Items

[________________________________]

SECTION 4 — PURCHASE PRICE AND CONSIDERATION

4.1 Purchase Price: $[________________________________]

4.2 The purchase price stated above represents:

☐ The full and complete consideration for the Property
☐ Partial consideration — additional consideration includes: [________________________________]
☐ Gift (no monetary consideration)
☐ Trade / Exchange — description of trade property: [________________________________]

4.3 Payment Terms:

☐ Full Payment at Closing. The entire purchase price is paid in full on the date of this Bill of Sale.
☐ Installment Payments. The purchase price shall be paid as follows:

4.4 Payment Method:

☐ Cash
☐ Certified Check / Cashier's Check
☐ Personal Check
☐ Money Order
☐ Wire Transfer
☐ Electronic Payment (Zelle, Venmo, PayPal, etc.): [________________________________]
☐ Other: [________________________________]

4.5 Deposit / Earnest Money (if applicable): $[________________________________] paid on [__/__/____], to be applied toward the purchase price.

SECTION 5 — WARRANTIES

5.1 Warranty Selection. Seller makes the following warranty election regarding the Property (select one):

☐ AS-IS, WHERE-IS (No Warranty). THE PROPERTY IS SOLD "AS-IS, WHERE-IS" WITH ALL FAULTS. SELLER MAKES NO WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE PROPERTY, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY (ALA. CODE § 7-2-314), FITNESS FOR A PARTICULAR PURPOSE (ALA. CODE § 7-2-315), OR ANY WARRANTY ARISING FROM COURSE OF DEALING, USAGE OF TRADE, OR COURSE OF PERFORMANCE. BUYER ACKNOWLEDGES THAT BUYER HAS INSPECTED THE PROPERTY OR HAS HAD THE OPPORTUNITY TO INSPECT THE PROPERTY AND ACCEPTS IT IN ITS PRESENT CONDITION. THIS DISCLAIMER IS MADE IN COMPLIANCE WITH ALA. CODE § 7-2-316.

☐ Express Warranty. Seller warrants the following regarding the Property (describe warranty terms, duration, and limitations): [________________________________]

Duration of express warranty: [________________________________] from date of sale.

☐ Implied Warranty of Title (UCC § 2-312). Seller warrants, pursuant to Ala. Code § 7-2-312, that: (a) the title conveyed shall be good, and its transfer rightful; (b) the Property shall be delivered free from any security interest or other lien or encumbrance of which the Buyer at the time of contracting has no knowledge; and (c) the Property is free from any rightful claim of infringement.

☐ Full Warranty (Express + Implied). Seller provides both express warranties as described above and all implied warranties under Alabama UCC Article 2, including the implied warranty of merchantability (Ala. Code § 7-2-314) and the implied warranty of fitness for a particular purpose (Ala. Code § 7-2-315).

SECTION 6 — SELLER REPRESENTATIONS

Seller represents, warrants, and certifies to Buyer that:

6.1 Seller is the sole and lawful owner of the Property described herein, or is the duly authorized agent of the owner with full authority to sell and transfer the Property.

6.2 The Property is free and clear of all liens, security interests, encumbrances, claims, and demands of every kind, except as follows:

☐ None
☐ The following liens/encumbrances exist: [________________________________]

6.3 Seller has full legal right, power, and authority to sell, transfer, and deliver the Property to Buyer.

6.4 There are no pending or threatened legal proceedings, claims, or actions affecting the Property or Seller's right to sell it.

6.5 The information provided in this Bill of Sale is true, accurate, and complete to the best of Seller's knowledge.

6.6 For motor vehicles: The odometer reading stated herein is accurate to the best of Seller's knowledge, and the odometer has not been tampered with, disconnected, or reset, in compliance with the Federal Odometer Act (49 U.S.C. § 32703).

☐ Odometer reading reflects actual mileage
☐ Odometer reading reflects mileage in excess of the odometer's mechanical limits
☐ Odometer reading is NOT the actual mileage — DISCREPANCY

SECTION 7 — CONDITION OF GOODS

7.1 Condition at Time of Sale:

☐ New — never used
☐ Used — in good working condition
☐ Used — in fair condition with the following defects or issues: [________________________________]
☐ Used — not in working condition
☐ Salvage / For parts only
☐ Refurbished / Reconditioned

7.2 Known Defects or Issues. Seller discloses the following known defects, damage, or conditions affecting the Property:

[________________________________]

☐ No known defects or issues

7.3 Buyer's Inspection. Buyer acknowledges that:

☐ Buyer has personally inspected the Property prior to this sale and is satisfied with its condition
☐ Buyer has arranged for a third-party inspection and is satisfied with the results
☐ Buyer has elected to waive inspection and accepts the Property in its current condition
☐ Buyer's purchase is contingent upon satisfactory inspection by [__/__/____]

SECTION 8 — RISK OF LOSS AND DELIVERY

8.1 Risk of Loss. Pursuant to Ala. Code § 7-2-509, risk of loss shall pass from Seller to Buyer:

☐ Upon execution of this Bill of Sale
☐ Upon Buyer's physical receipt and acceptance of the Property
☐ Upon delivery to the carrier designated by Buyer (FOB shipping point)
☐ Upon delivery to the destination designated by Buyer (FOB destination)
☐ Other: [________________________________]

8.2 Delivery.

☐ Buyer shall take possession of the Property at the location of sale
☐ Seller shall deliver the Property to Buyer at: [________________________________] by [__/__/____]
☐ Seller shall ship the Property to Buyer via: [________________________________]. Shipping costs shall be borne by: ☐ Seller ☐ Buyer

8.3 Title Transfer. Title to the Property shall transfer from Seller to Buyer:

☐ Upon execution of this Bill of Sale and receipt of full payment
☐ Upon delivery and acceptance of the Property
☐ Upon satisfaction of all payment obligations (title retained as security)
☐ As otherwise provided by Ala. Code § 7-2-401

SECTION 9 — INDEMNIFICATION

9.1 Seller shall indemnify, defend, and hold harmless Buyer from and against all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from: (a) any breach of Seller's representations and warranties herein; (b) any undisclosed liens, encumbrances, or security interests on the Property; or (c) any claim by a third party asserting ownership of or interest in the Property.

9.2 Buyer shall indemnify, defend, and hold harmless Seller from and against all claims, damages, losses, liabilities, costs, and expenses arising from Buyer's use, ownership, or possession of the Property after the date risk of loss passes to Buyer.

SECTION 10 — GOVERNING LAW

10.1 This Bill of Sale shall be governed by and construed in accordance with the laws of the State of Alabama, including the Alabama Uniform Commercial Code (Ala. Code Title 7), without regard to conflict of laws principles.

10.2 Any litigation arising from or relating to this Bill of Sale shall be brought exclusively in the state or federal courts located in [________________________________] County, Alabama.

SECTION 11 — ADDITIONAL TERMS

[________________________________]

SECTION 12 — SIGNATURES

By signing below, the Parties acknowledge that they have read, understand, and agree to the terms of this Bill of Sale. Seller transfers all right, title, and interest in the Property to Buyer, and Buyer accepts such transfer.

SELLER:

Signature: _______________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

CO-SELLER (if applicable):

Signature: _______________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

BUYER:

Signature: _______________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

CO-BUYER (if applicable):

Signature: _______________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

SECTION 13 — NOTARIZATION

Notarization is optional for most bills of sale in Alabama but is recommended for high-value transactions and may be required for certain property transfers.

STATE OF ALABAMA
COUNTY OF [________________________________]

Before me, the undersigned notary public, on this [____] day of [________________________________], [________], personally appeared:

[________________________________] (Seller), proved to me through:
☐ Satisfactory identification (Driver's License / State ID)
☐ Personal knowledge
to be the person whose name is signed on the preceding document and acknowledged that he/she/they signed it voluntarily for its stated purpose.

[________________________________] (Buyer), proved to me through:
☐ Satisfactory identification (Driver's License / State ID)
☐ Personal knowledge
to be the person whose name is signed on the preceding document and acknowledged that he/she/they signed it voluntarily for its stated purpose.

Notary Public Signature: _______________________________________________

Printed Name of Notary: [________________________________]

My Commission Expires: [__/__/____]

Notary Seal:

[SEAL]

WITNESS ATTESTATION (Optional)

Witness 1:

Signature: _______________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Date: [__/__/____]

Witness 2:

Signature: _______________________________________________

Printed Name: [________________________________]

Address: [________________________________]

Date: [__/__/____]

PRACTICE NOTES — ALABAMA-SPECIFIC REQUIREMENTS

1. UCC Article 2 Applicability. Alabama has adopted UCC Article 2 (Ala. Code § 7-2-101 et seq.), which governs the sale of goods (movable personal property). The bill of sale serves as evidence of the transaction and the transfer of title.

2. Statute of Frauds. Under Ala. Code § 7-2-201, contracts for the sale of goods priced at $500 or more must be evidenced by a writing signed by the party against whom enforcement is sought. This Bill of Sale satisfies that requirement.

3. Title Transfer. Under Ala. Code § 7-2-401, title to goods passes from seller to buyer at the time and place the seller completes physical delivery of the goods, unless the parties expressly agree otherwise.

4. Warranty Disclaimer Requirements. Under Ala. Code § 7-2-316, to exclude the implied warranty of merchantability, the disclaimer must mention "merchantability" and, if in writing, must be conspicuous. To exclude the implied warranty of fitness for a particular purpose, the exclusion must be in writing and conspicuous.

5. Motor Vehicle Requirements. For motor vehicle transfers, Alabama requires submission of the signed title and bill of sale to the Alabama Department of Revenue, Motor Vehicle Division. Per Ala. Admin. Code r. 810-5-1-.246, the bill of sale must contain specified minimum information. Vehicles subject to the Alabama Certificate of Title and Antitheft Act (Ala. Code § 32-8-1 et seq.) require title transfer through the county probate judge or license commissioner.

6. Sales Tax. Alabama imposes a state sales/use tax on the sale of tangible personal property. Buyers should verify tax obligations with the Alabama Department of Revenue. Certain exemptions may apply (e.g., casual sales between individuals for certain items).

7. Odometer Disclosure. Federal law (49 U.S.C. § 32703) and Alabama regulations require odometer disclosure for motor vehicle transfers. Failure to provide accurate odometer information may result in civil and criminal penalties.

8. Notarization. Alabama does not generally require notarization for bills of sale, but notarization is recommended for high-value transactions and may be required by the purchaser's lender or for certain property types.

9. Risk of Loss. Under Ala. Code § 7-2-509, in the absence of breach, risk of loss passes to the buyer upon receipt of the goods if the seller is a merchant, or upon tender of delivery if the seller is not a merchant.

10. Lien Searches. Buyers should conduct a UCC lien search through the Alabama Secretary of State's office to verify there are no outstanding security interests on the property.

This template is provided for informational purposes only and does not constitute legal advice. Users should verify current requirements with the Alabama Department of Revenue or consult a qualified attorney licensed in Alabama.