Bill of Sale
Historical Origin
The term “bill of sale” originally referred to any writing by which an absolute disposition of personality for value was effected or evidenced. A common feature of such disposition is that the owner mortgagor remains in possession and exercises all the attendant rights of ownership, which may be so overwhelming as to induce a third party to accept the same chattel as a security for a grant, albeit without notice of the first mortgagee.
Contents of the Bill of Sale
In Jamaica, the Bills of Sale act was enacted on the 18th June, 1867. A Bills of Sale is a legal document that is created by a Financial Institution for an individual or a couple who meet the necessary requirements for a loan. This arrangement between the grantor (the individual or couple) and the grantee (the financial institution) must be recorded at the Registrar General’s Department (IRO) within thirty (30) days of execution.
The Bills of Sale is used to charge already owned chattels (goods, furniture) as security for a loan.
The document is comprised of the following:
This document is then signed by the grantor and the grantee in the presence of a Justice of the Peace who affixed his/her signature and seal.
A meeting of the committee of the financial institution is then convened where an approval for the loan in considered. A lien is therefore established upon the creation of the Bills of Sale.
On payment of debt by the grantor the financial institution would draft a document called the Power to Enter Satisfaction. The authority would be given to an agent from the said financial institution to enter satisfaction at the margin of the Bills of Sale stating that all monies borrowed have been paid.