- What Is a Bill of Sale?
- Can I Use One Bill of Sale Template for Multiple Transactions?
- Is a Bill of Sale Legally Required in My State?
- Can I Use a Bill of Sale to Sell Services?
- Can I Use a Bill of Sale for a Gift Transfer?
- What If I Want to Make a Bill of Sale Without Guarantees?
- What Should I Do Before Creating a Bill of Sale?
- How Do I Write a Bill of Sale?
- What Do I Do With a Completed Bill of Sale?
- How Do I Customize a Bill of Sale Template for My Needs?
- Frequently Asked Questions
- Bill of Sale Sample
What Is a Bill of Sale?
A bill of sale lets you show an item sale occurred. It proves the item’s ownership was transferred from the seller to the buyer. You can use this document to record and refer to the transaction’s date, the item’s sale price, and the item’s description.
You might need these details to prove you own the item, register it, sort out disputes, or handle tax filing. Plus, some states actually require a bill of sale for certain transactions, so it’s a good way to make sure you’re following the rules.
Whether you’re buying a used car or looking to sell some old furniture, a bill of sale is helpful in authenticating the transaction.
Is a Bill of Sale Legally Binding?
A bill of sale can be legally binding, but whether it’s enforceable depends on several factors. For example, both parties, the seller and the buyer, must sign the document willingly. They must also be able to show consideration (i.e., money for goods) and record the transaction’s details.
Other requirements for a bill of sale to be legally binding include the following:
- explicit outline of additional terms and warranties
- involvement of a lawful transaction
- no misrepresentation of the for-sale items
Can I Use One Bill of Sale Template for Multiple Transactions?
While using one bill of sale template for multiple transactions may seem convenient, it’s better to create a document tailored to each deal. This helps both buyers and sellers describe the item clearly and record the transaction for a smooth transfer.
Legal Templates has a variety of templates for different types of transactions. With our simple document builder, you can pick the right template and add your details.
Transfers ownership of personal property from the seller to the buyer.
General (Personal Property)
Allows you to sell or transfer ownership of a motor vehicle, including automobiles, trucks, vans, and motorcycles.
Motor Vehicle
Facilitates the transfer of ownership of a boat or other water vessel.
Boat
Serves as a tool for transferring ownership of a pull-behind vehicle.
Trailer
Enables the formal transfer of ownership of a firearm.
Firearm
Documents the transfer of equipment ownership.
Equipment
Officially records the sale and transfers ownership of a motorcycle.
Motorcycle
Helps in transferring ownership of an aircraft.
Aircraft
Conveys property ownership as-is without any warranties.
As-Is
Acts as proof of ownership transfer of an all-terrain vehicle (ATV).
ATV
Establishes the sale and transfer of a bicycle.
Bicycle
Pass ownership of a business from one party to another.
Business
Serves as a written agreement for the transfer of ownership of a cat.
Cat
Facilitates the legal handover of a dog.
Dog
Ensures the rightful transfer of ownership of a dirt bike.
Dirt Bike
Facilitates a barter by recording the transfer of ownership of items.
Even Trade
Acts as a record of ownership exchange for a piece of furniture.
Furniture
Confirms the shift in ownership for a car that one party gifts to another.
Gifted Car
Secures the formal change of ownership of a golf cart.
Golf Cart
Gives a written account of the transfer of ownership of a horse.
Horse
Provides documentation for transferring ownership of a jet ski.
Jet Ski
cts as a legal document proving the shift in ownership of livestock.
Livestock
Transfers ownership rights of a mobile home.
Mobile Home
Serves as a binding document for the sale and transfer of a scooter.
Scooter
Specifies and records the transfer of personal property. Contains acknowledgment from a notary public for added authenticity.
Notarized
Enables the shift of ownership of a recreational vehicle (RV).
RV
Marks the official handover of a semi-truck.
Semi-Truck
Legalizes the transfer of a tractor.
Tractor
Provides legal confirmation of ownership transfer of a utility terrain vehicle (UTV).
UTV
Ensures a proper transfer of ownership rights of a lawn mower.
Lawn Mower
Certifies the change in ownership of a snowmobile.
Snowmobile
Is a Bill of Sale Legally Required in My State?
Whether a bill of sale is legally required depends on your state and the type of transaction. Some states mandate this document for vehicle transfers or other large purchases, while others do not. Even if it isn’t required, having one can protect the buyer and seller by providing a record of the transaction.
Legal Templates offers a collection of state-specific bill of sale templates designed to meet your state’s unique requirements. Our easy-to-use document builder makes it simple to create a bill of sale that complies with local laws and includes all the necessary details for your transaction.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Can I Use a Bill of Sale to Sell Services?
No. A bill of sale is for recording the ownership transfer of physical property like cars, furniture, and electronics. Services aren’t tangible items, so a bill of sale does not cover them.
Even though you can’t use a bill of sale for services, Legal Templates still provides what you need. We offer a comprehensive service agreement template, which helps you clearly outline the terms of your arrangement and protect all parties involved.
Can I Use a Bill of Sale for a Gift Transfer?
Yes. While a bill of sale traditionally applies to item sales and purchases, you may use it to give an item to someone else.
A bill of sale always requires consideration, but the idea of consideration is different when transferring a gifted item. When giving a gift, the bill of sale must show that the donor intends to give the item without receiving anything in return. At the same time, the donee must show that they accept the gift.
What If I Want to Make a Bill of Sale Without Guarantees?
If you want to sell an item without offering any warranties or guarantees about its condition, you can use an “as-is” bill of sale. This document makes it clear that the buyer will accept the item in its current state. The seller doesn’t promise anything about the item’s quality or performance. They also don’t pledge to assist with future repairs.
This kind of bill of sale protects the seller from future claims if the item breaks or needs fixing. While this document presents a greater risk for buyers and gives sellers reduced negotiating power, it can simplify the transaction and ensure the sale is final.
What Should I Do Before Creating a Bill of Sale?
A bill of sale is often the final step in the sales process, so here are some steps you can take before writing one.
- Determine why you’re writing the bill of sale (e.g., to handle sales tax on a private car sale or for personal record-keeping purposes).
- Collect detailed information about the item, such as its condition, model, and unique identifiers.
- Research local requirements to determine if you must include specific details or have a notary public or witness sign the document.
- Consider using a sales agreement template to draft out the terms of a high-value transaction first.
- Agree on the terms with the other party to avoid disputes later.
- Prepare the necessary documentation for ownership transfer, including titles or registrations.
- Decide on warranties or “as-is” terms.
- Double-check identification of the other party to ensure credibility.
- Consult a lawyer for high-value or complicated sales.
How Do I Write a Bill of Sale?
Writing a bill of sale can be seamless if you have the right details. Follow these steps to create a solid document that offers protection to all parties involved.
1. List the Date & Party Details
Write the current date at the top of the document. This detail establishes when the sale took place, which is important for creating a clear timeline for legal and tax reasons.
Example
Let’s say you’re selling a used car on January 19, 2025. The date helps clarify that the sale occurred on this day, which is key if any questions arise later about the car’s condition or ownership.
On your bill of sale form, you can also include the full names and addresses of both parties. These details identify who is involved in the transaction and which parties are giving up and receiving ownership.
Example
Seller:
Bradley Carrington
4725 Silverstone Dr., Baton Rouge, LA 70808
(225) 555-7234
[email protected]
Buyer:
Maya Donovan
8423 Cedar Hollow Rd., Baton Rouge, LA 70808
(225) 555-3118
[email protected]
These are examples of notating the seller and buyer in a transaction. It clearly identifies them and gives the counterparty the option to reach out with the provided contact information.
If the buyer or seller is a business, include the business name and address as well.
2. Provide a Detailed Item Description
Include key details to identify the item being sold. If you’re selling a car, you can provide the make, model, year, odometer reading, Vehicle Identification Number (VIN), color, and condition. If you’re selling a camera, the details you need to provide will differ, as they will include make, model, serial number, accessories included, and software or digital licenses.
Example
Item Description:
- Make: Honda
- Model: Civic
- Year: 2015
- VIN (Vehicle Identification Number): 2HGFC2F50FH123456
- Odometer Reading: 75,000 miles
-
Condition: Used, in good condition.
- The car has been regularly maintained and is mechanically sound.
- The exterior has a few minor scratches and small dings from normal use.
- The interior is clean with no significant damage, but it shows signs of wear on the driver’s seat.
- Color: Silver
- Engine Type: 1.8L 4-cylinder
- Transmission: Automatic
- Fuel Type: Gasoline
- Registration: Valid through June 2024
- Title Status: Clean title, no liens
This item description covers key details about the car and sets expectations for the buyer regarding the car’s condition.
Always be honest about the item’s condition so the buyer knows exactly what item they’re getting and what state it will come in.
3. State the Selling Price
Clearly list the agreed-upon selling price for the item, including any taxes or additional fees. Specify if you’re offering a discount or if the item includes any additional services, like free shipping or delivery.
Example
$5,500 for the 2015 Honda Civic, including sales tax. The customer must pick up the vehicle; no delivery fee is included.
This type of clear price promotes transparency and helps minimize confusion.
Be sure to negotiate before creating the bill of sale, as any price you list in your bill of sale should be final.
4. Outline the Payment Terms
Specify the payment method the buyer will use. Clarify if the payment will occur in one amount or installment payments.
Example
The buyer will pay the full purchase price in cash when the seller delivers the vehicle to the buyer.
This clarification ensures that both parties are on the same page regarding how the transaction will occur. For high-value items, you may consider more secure methods than cash, like a cashier’s check or bank transfer.
If the transaction will occur between friends or family members and payment will be made in installments, consider using a promissory note template to formalize the payment terms.
5. Add Warranties (Optional)
Add warranties if you want the purchase to have any promises or guarantees. Ensure that you only list realistic promises.
Example
The seller guarantees that the vehicle is free from any liens and will pass emissions testing.
These warranties give confidence to the buyer and ensure that the sale will only happen if these conditions are met.
6. Add Signatures
Both the buyer and seller need to sign the document to make it official. If either party omits their signature, the bill of sale won’t be valid, and your transaction could be questioned later.
Example
After agreeing to sell a car, you and the buyer sign the bill of sale. You may also want a witness or notary to sign, especially for high-value items.
If the item is a large asset, getting it notarized can add an extra layer of verification that the agreement is legitimate.
7. Make Copies
Once both parties sign, create at least two copies: one for the buyer and one for the seller.
Example
After selling a used car to a neighbor, the seller can give them a copy of the bill of sale and keep the original for themselves.
When they each have a written record, both parties can refer to the document later if disputes arise.
What Do I Do With a Completed Bill of Sale?
Once you’ve completed your bill of sale, you should keep it for your records. It’s proof of the transaction and can protect the buyer and seller if any issues come up.
If the item you sold or bought needs to be registered, such as a car, boat, or trailer, you will likely need to bring the bill of sale to the DMV or another government office as part of the registration process. Some agencies may request it as proof of ownership or to calculate taxes and fees.
For items that don’t require registration, such as furniture or electronics, simply keep a copy in case you need it for tax purposes or to show the transfer of ownership.
If you’re the seller, you can use a receipt template to create a receipt and issue it to the buyer to show you received their payment.
How Do I Customize a Bill of Sale Template for My Needs?
Customizing a bill of sale is easy and ensures the document meets the specifics of your transaction. Whether you’re selling a car, a couch, or a camera, you can tailor the template to include the details that matter most, such as the item’s description, price, and payment terms.
Legal Templates guides you step-by-step with our document builder to create a bill of sale for your specific situation. Once complete, you can save it as a PDF or Word document and print it for your records, making it easy to refer to when you need to prove ownership of an item.
Frequently Asked Questions
Does a bill of sale need witnesses?
Witnesses to a bill of sale aren’t necessary in most cases, but they can provide an extra layer of credibility to the document. However, you should always check the requirements in your area to ensure your jurisdiction doesn’t require witnesses for this document’s creation.
Does a bill of sale need to be notarized?
While notarization isn’t always required for a bill of sale, it improves the document’s authenticity. Notarization creates a legal record of the transaction and shows that a notary public validated the parties’ identities.
Notarization may be necessary in certain situations, such as when transferring vehicle ownership. Check your state’s laws or refer to the requirements for a specific transaction type in your jurisdiction.
What happens if there’s a mistake on a bill of sale?
If the mistake is significant, such as an incorrect price, date, or item description, you can create a new bill of sale. The buyer and seller should review the new document and sign it again to confirm the changes.
Alternatively, you can amend the original bill of sale. Amending is the right choice for small errors, such as a small typo in a name or address. Both parties should write the correction directly on the original form, initial the changes, and keep a copy for their records.
What’s the difference between a bill of sale and an invoice?
A bill of sale proves an item’s ownership transfer, while an invoice requests payment for services rendered.
Is a bill of sale the same as a receipt?
No. A bill of sale is more formal and proves a change in ownership. A receipt is less formal and simply shows that the buyer made a payment for the item.
Bill of Sale Sample
Below is an example of a bill of sale template. Once you familiarize yourself with the format, you can create your own using our document builder.
