A Bill of Sale with encumbrances means that whatever product is being sold has some sort of lien, mortgage, or monies owing, and the Buyer is agreeing that they will take on these obligations upon purchase.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
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