Buying or selling expensive farm equipment like a farm tractor often involves a lot of technicalities, especially when you are buying privately. To protect yourself, it is highly advisable that you document the transaction in its entirety so that you have proof of the sale and change of ownership. You can do this through a completed and signed Bill of Sale.
A Bill of Sale is more than a record of a sale. If you are a buyer, you can use it to prove ownership when applying for a title and registration. A seller, on the other hand, can use it to protect them from liability if a dispute arises. This article highlights all you need to know about preparing a Farm Tractor Bill of Sale.
What Is a Farm Tractor Bill of Sale?
A Farm Tractor Bill of Sale is a formal document that outlines the transfer of ownership of a farm tractor for money or trade between a buyer and seller. It is a binding legal document that summarizes the buyer and seller details, tractor description, the specified selling price, and the payment method involved in this transaction. Once signed, it indicates that the tractor (and its title) have changed possession.
Farm Tractor Bill of Sale Form (Word Template)
A Farm Tractor Bill of Sale is a signed, formal and fillable document that is completed to serve as a record of a tractor-for-funds transfer. It is completed by filling in the buyer and seller details, tractor description, selling price, and payment method.
Download: Microsoft Word (.docx)
Essential Elements of a Farm Tractor Bill of Sale
As mentioned, a Bill of Sale for a farm tractor transaction serves as a formal record for the entire sale. To do this, it must contain the following essential elements:
- The names, contact information, and mailing addresses of the buyer and seller.
- The make, color, model, year, VIN and other descriptive information about the tractor.
- The agreed-upon selling price for the tractor.
- The expected payment date.
- The condition of sale, i.e. with warranty, repaired, or as-is.
- The signatures and signature dates of the buyer and seller.
- The signature and signature dates of the witnesses (optional) or notary public (if required by state).
Process of Selling a Tractor
Selling farm equipment and machinery makes for a smaller niche than selling other vehicles, such as cars and motorcycles. Your farm tractor may remain listed for up to 4 to 6 months before you find a suitable buyer. That said, it is possible to sell your tractor through the following process:
Step 1: Prepare the Tractor
Clean and have your tractor repaired by a mechanic to make it appealing to potential buyers. If it has visible rust, apply a new coat of paint and wax the tractor with traditional wax. Once this is done and your tractor looks ready to sell, take clear pictures.
Step 2: Throw in Some Attachments
If you have attachments and equipment that you use with the tractor but will no longer be needing, throw them in with the tractor as an attractive sale package. Doing this will help you attract more potential buyers.
Step 3: Collect the Paperwork
Locate and gather all the paperwork that comes with the tractor such as the title, tractor specs, and owner’s manual. This is information the buyer will need when filing for registration and operating the tractor.
Step 4: Advertise
List your tractor on websites that deal with the sale of farm tractors, such as EquipmentHouse.com and TractorHouse.com and on local magazines, newspapers, newsletters, and swap sheets. You can also advertise on the tractor section of eBay.com. Make sure to use the pictures you took in the first step and include a detailed and captivating description.
Step 5: Negotiate with the Buyer
Once a potential buyer contacts you, discuss the selling price with them and other relevant details until you come to an agreement.
Tip: If you are unsure of what the selling price for your farm tractor should be, compare it with other such tractors being sold in your area or hire an appraiser.
Step 6: Complete the Bill of Sale
Complete the transaction by handing over the tractor and other relevant documents to the buyer and accepting the funds, then completing and signing the Bill of Sale.
Step 7(Optional): Notarize the Bill of Sale
If you live in a state that requires the notarization of Bills of Sale, have the document notarized by a notary public. This will make it a matter of public record.
How to Find a Tractor SN?
The serial number (SN) on a tractor is not located in any one place on the vehicle’s body. To find it, you will need to key in the tractor’s brand name into TractorData.com, where you will get the first 4 to 6 serial number digits. You can then use this number as a reference to search for the remaining digits on the tractor.
Frequently Asked Questions
Step 1: Supply the buyer and seller details, including name, contact information, and mailing address.
Step 2: Describe the tractor by make, model, year, color, and brand.
Step 3: Indicate the selling price and payment method.
Step 4: Confirm the sell-by date and describe the condition of sale.
Step 5: Have both parties sign and date the Bill of Sale in the presence of witnesses or a notary public, as required by the state in which the transaction is taking place.
No. Farm tractors are not titled in the United States because they don’t use tunnels, bridges, and roads regularly and thus are not subject to taxation. They are also less prone to fraud and theft compared to other vehicles. However, a tractor can be titled if it is used for commercial or construction purposes, such as mowing the lawn on a freeway.
Because farm tractors don’t have titles, you can prove ownership by maintaining a copy of the receipt, invoice, or Bill of Sale. The Bill of Sale must contain a record of the tractor’s serial number and odometer reading. During the sale, you can also take pictures of the tractor, especially the parts with the serial number.
Key Points
A Farm Tractor Bill of Sale summarizes the agreement between a buyer and seller to transfer the ownership of a farm tractor. It outlines the tractor description, buyer and seller details, selling price, and payment method. As such, it is the final and legal proof of the sale and purchase of a farming vehicle. As the buyer, you must be aware that the tractor will be sold as-is unless otherwise stated.
