What Is a Bill of Sale?
A bill of sale is a legal document that serves as written proof of the transfer of ownership of personal property from one party (the seller) to another (the buyer). It records the details of the transaction including the item sold, the agreed-upon price, the condition of the property, and the identities of both parties involved.
Bills of sale are used for a wide range of transactions — from selling a used car or boat to transferring business equipment or livestock. They protect both buyers and sellers by creating a clear, documented record of the sale that can be referenced if disputes arise later. For titled property like vehicles, a bill of sale is typically required by the DMV alongside the title transfer.
A bill of sale may also be referred to as a sale agreement, proof of purchase, or transfer document. While the exact format varies depending on the type of property being sold, all bills of sale share the same core purpose: documenting the who, what, when, and how much of a private sale.
Legal Protection
Written proof of sale protects both buyer and seller
Ownership Record
Documents the exact date and terms of transfer
Tax Documentation
Required for calculating sales tax and registration fees
Types of Bill of Sale
Different types of property require different bill of sale formats. Vehicle sales need VIN numbers and odometer readings, boat sales require hull identification numbers, and firearm sales have additional legal requirements. Select the type that matches your transaction for a template customized with the right fields and disclosures.
Vehicle Bill of Sale
Cars, trucks, SUVs
Motorcycle Bill of Sale
Motorcycles and mopeds
Boat / Watercraft Bill of Sale
Boats, vessels, personal watercraft
Firearm Bill of Sale
Handguns, rifles, and shotguns
Trailer Bill of Sale
Utility, travel, and cargo trailers
ATV / Off-Road Bill of Sale
ATVs and side-by-sides
Horse / Livestock Bill of Sale
Horses, cattle, and other livestock
Aircraft Bill of Sale
Airplanes, helicopters, ultralight aircraft
Mobile Home Bill of Sale
Manufactured and mobile homes
Electronics Bill of Sale
Computers, phones, cameras, and devices
Business / Equipment Bill of Sale
Business assets, machinery, and tools
General / Personal Property Bill of Sale
Furniture, household items, other
How to Write a Bill of Sale
Writing a bill of sale is straightforward, but it's important to include all legally required information to ensure the document holds up in court. Follow these steps to create a comprehensive bill of sale for any type of property.
Identify the Buyer and Seller
Include the full legal names, current addresses, and contact information of both the buyer and seller. If either party is a business entity, include the business name and the name of the authorized representative. For vehicle sales, you may also need driver's license numbers.
Describe the Property in Detail
Provide a thorough description of the item being sold. For vehicles, include the year, make, model, color, VIN, and odometer reading. For boats, include the hull identification number, length, and engine details. For general property, describe the item with enough specificity to avoid confusion — serial numbers, model numbers, and condition are all important.
State the Purchase Price and Payment Terms
Clearly document the total sale price in both numbers and words (e.g., "$5,000 — Five Thousand Dollars"). Note the payment method (cash, check, bank transfer) and whether the payment is made in full at signing or in installments. If using a payment plan, include the schedule and terms in the document or reference a separate promissory note.
Disclose the Condition of the Property
Specify whether the item is being sold "as-is" (no warranty) or with a warranty. Most private party sales are "as-is," meaning the buyer accepts the property in its current condition. If selling as-is, it's still good practice to disclose any known defects, damage, or issues. This protects the seller from future claims.
Include Warranties and Representations
The seller should represent that they have the legal right to sell the property and that the item is free of liens, claims, and encumbrances. For vehicles, the seller should confirm there are no outstanding loans against the title. This warranty of ownership is one of the most important protections a bill of sale provides to the buyer.
Sign, Date, and Notarize (If Required)
Both parties should sign and date the bill of sale. Print two copies so each party retains one. Some states require notarization for certain types of bills of sale (especially vehicles and firearms). Even when not required, notarization adds credibility. Consider using our e-signature feature for a convenient, legally binding signature.
Key Components of a Bill of Sale
A complete bill of sale should include the following elements. Missing critical information could make the document unenforceable or lead to disputes between buyer and seller.
| Component | Description |
|---|---|
| Seller Information | Full legal name, address, and contact details of the seller |
| Buyer Information | Full legal name, address, and contact details of the buyer |
| Property Description | Detailed description with identifying numbers (VIN, serial, hull ID) |
| Sale Price | Total amount in numbers and words, including payment method |
| Date of Sale | The exact date the transaction takes place |
| Condition / As-Is Clause | Statement of the property's condition and any warranty or as-is terms |
| Warranty of Ownership | Seller confirms they own the property and it's free of liens |
| Odometer Disclosure | Required for motor vehicles — current mileage at time of sale |
| Signatures | Dated signatures from both buyer and seller |
| Notarization | Required in some states for certain property types |
Legal Requirements for a Bill of Sale
Bill of sale requirements vary significantly from state to state. Some states provide official bill of sale forms that must be used, while others accept any format as long as it contains the required information. Understanding your state's requirements is essential to ensure your document is legally valid.
Important: Vehicle Bills of Sale
Federal law requires an odometer disclosure statement for all motor vehicle sales. This must include the current mileage, whether the odometer reading is accurate, and whether the odometer has exceeded its mechanical limits. This is required regardless of state — it's a federal regulation under the Motor Vehicle Information and Cost Savings Act.
States That Require a Bill of Sale
Most states require a bill of sale for vehicle transfers and title registration. The following requirements commonly apply:
- Vehicle Sales: Required by the DMV in most states for title transfer and registration
- Boat Sales: Required for registration with state wildlife or marine agencies
- Firearm Sales: Some states require documentation of private firearm transfers
- High-Value Property: Recommended for any sale over $500 for tax and legal purposes
- Notarization: Required in Louisiana, Nebraska, Montana, West Virginia, and Maryland for vehicle sales
Sales Tax Considerations
In most states, the buyer is responsible for paying sales tax on the purchase. The bill of sale serves as the primary document for calculating the tax owed. The sale price documented on the bill of sale determines the tax amount, which is why it's critical to report the actual sale price. Underreporting the price to avoid taxes is illegal and can result in penalties.
Sample Bill of Sale
Below is a preview of our general bill of sale template. This sample shows the format and sections included in our attorney-drafted documents. Your customized bill of sale will be tailored to the specific type of property and your state's requirements.
BILL OF SALE
General Personal Property
This Bill of Sale is made on[Date], between:
SELLER:
Name: [Seller Name]
Address: [Seller Address]
BUYER:
Name: [Buyer Name]
Address: [Buyer Address]
1. PROPERTY DESCRIPTION
The Seller hereby sells, transfers, and delivers to the Buyer the following property:[Item Description]
2. PURCHASE PRICE
The total purchase price is $[Amount]([Amount in Words] Dollars), paid by [Payment Method].
3. CONDITION
The property is sold "AS-IS" with no warranties, expressed or implied, regarding the condition, fitness, or merchantability of the property...
Frequently Asked Questions
Find answers to common questions about bills of sale, property transfers, and our document creation process.
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