Bill of Sale
Create a Colorado-compliant drone Bill of Sale. Protect yourself with Part 107 identification, as-is clauses, and CO-specific consumer protection terms.
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Transferring specialized sUAS equipment like LiDAR-equipped drones or inspection rigs requires more than a simple receipt. In Colorado, a Bill of Sale must satisfy Colo. Rev. Stat. § 38-10-108 for... Read more
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Transferring specialized sUAS equipment like LiDAR-equipped drones or inspection rigs requires more than a simple receipt. In Colorado, a Bill of Sale must satisfy Colo. Rev. Stat. § 38-10-108 for transactions over $500 while addressing unique drone liabilities. As a Part 107 pilot, you need a document that explicitly identifies flight controllers and payloads, provides clear Warranties and Disclaimers to mitigate property damage risks, and confirms the status of FAA drone registration. This protects your professional reputation and ensures compliance with the Colorado Consumer Protection Act by providing transparent disclosures of the drone's operational history.
Beyond the standard bill of sale sections, this template adds fields specific to Drone Pilot:
A Bill of Sale serves the core legal purpose of providing proof of the transfer of ownership of an item from the seller to the buyer. It formalizes the transaction and fulfills the legal need for documentation of the sale, aiding in preventing disputes over ownership and clarifying the terms and conditions agreed upon by the parties involved.
FAA Regulation Violations
Contracts can specify that pilot maintains active Part 107 certification and compliance with all FAA guidelines.
Privacy Invasions
Agreements often include clauses ensuring compliance with federal and state privacy laws, as well as specifying data collection practices.
Property Damage
Service contracts typically include indemnity clauses and require the pilot to have sufficient insurance to cover potential damages.
Airspace Violations
Contracts may require pilots to obtain necessary airspace authorizations and provide proof of compliance with flight plans.
For this bill of sale to be legally valid:
Common mistakes to avoid:
FAA Part 107
Governs the commercial operation of small unmanned aircraft systems (sUAS), detailing requirements for operation, pilot certification, and aircraft limitations.
Enforced by Federal Aviation Administration (FAA)
FAA Section 336
Regulates model aircraft operations primarily for hobbyists, which can sometimes impact drone pilots in determining the commercial vs. recreational distinction.
Enforced by Federal Aviation Administration (FAA)
State-specific drone laws
Each state may have specific laws regulating drone use, such as registration requirements, privacy laws, and restricting operations in certain areas (e.g., near critical infrastructure or private property).
Enforced by State Aviation Authority or Department of Transportation
Recommended coverage: Aviation Liability Insurance · Commercial General Liability Insurance · Drone Hull Insurance (covers damage to the drone) · Errors and Omissions (E&O) Insurance
A Bill of Sale provides legal proof of ownership transfer, but it does not automatically update the FAA DroneZone. Per FAA Part 107 and Section 336 distinctions, the seller must un-register the sUAS from their account. Our document includes a Required Clause for 'Description of the Item Sold' where you should include the FAA registration number to ensure the buyer can re-register the aircraft with the same UAS serial number.
Yes, our Colorado template includes a 'Warranties and Disclaimers' section where the seller can specify the drone is sold 'As-Is.' This is crucial for drone pilots to mitigate liability for future crash damage or gimbal failure. However, per the Colorado Consumer Protection Act, sellers must still disclose known latent defects to avoid allegations of deceptive trade practices.
While a Bill of Sale primarily transfers hardware, if the sale includes proprietary software or flight data, Colo. Rev. Stat. § 8-2-113 restricts how non-compete clauses can be applied. Additionally, if the drone purchase is part of an employment or independent contractor buyout, Colorado’s equal pay transparency rules (Colo. Rev. Stat. § 8-5-201) may require clear disclosure of the transaction value related to the pilot's compensation.
State laws affect what must be in this document. Pick your jurisdiction.
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