How it works
Before you hand over your heirloom jewelry or custom mountain bike, write up a Purchase Agreement to create a record of the sale. Buyers and sellers both benefit from having the details in writing, especially if the goods involved are valuable. It's smart to create a paper trail with a Purchase Agreement. Please note that this document cannot be used to transfer real estate.
It's easy to forgo the formalities when you are buying from an individual. But when you are dealing with expensive personal property, you'll likely want a record of the sale. A cancelled check might suffice, but it only takes a few minutes to create a Purchase Agreement with a more detailed description of the transaction. This is especially important if you're the buyer. What if you find out that the diamond solitaire you planned to propose with is actually a cubic zirconia? When you have a written description from the buyer, you'll have a better chance of getting your money back. Or maybe you're just transferring property. Do you want to make your daughter the official owner of your exceptional vinyl record collection? Get it done right. A Purchase Agreement keeps selling, buying, or transferring ownership or personal property on the up-and-up.
Other names for this document: Purchase Agreement Form, Purchase and Sale Agreement, Purchase Contract
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