Why We Still Have a Bill of Sale Even Though Section 2.2 of the Sale Agreement Covers Personal Property

Q: Since Section 2.2—Personal Property of the Sale Agreement includes a section for identifying personal property that will be transferred with the sale, why is there a Bill of Sale in our library?

A: Section 2.2 – Personal Property in the Sale Agreement is typically used to list appliances or maybe one or two other things. However, when investment property is involved, when a property is sold furnished, or things like farm equipment are included, there may be a great deal of personal property, which can cause an issue with the lender’s valuation of the property.  Therefore, in those circumstances, the language ‘Personal Property to be negotiated outside of escrow’ can be inserted in Section 2.2 and OREF 071 – Bill of Sale can be used to identify the items that will be included with the sale but that the parties don’t consider to be a part of the value of the property.

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