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Bill of Sale

Bill of Sale


A bill of sale is used to represent a transaction that transfers ownership of an asset from a seller to buyer.

It contains information about the asset/property, price and the parties involved and it must be signed by both parties.

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Bill of Sale FAQs

 

What is a bill of sale?

A bill of sale is a document that serves as the proof of purchase and the transfer of ownership between the buyer and the seller.

 

When should you use a bill of sale?

The most common property sold with a bill of sale is the private sale of a vehicle, but a bill of sale can be used with virtually all physical goods that are sold privately.  However, land and real estate cannot be sold with a bill of sale and a warranty deed should be used instead.

Here are some examples of goods that you could sell by customizing our bill of sale template:

  • Motor vehicles: cars, trucks, and motorcycles
  • Recreational vehicles: campers, trailers, RVs, mountain bikes, dirt bikes, golf carts, and snowmobiles
  • Watercrafts: boats, motorboats, sail boats, jet skis, and canoes
  • Firearms: hand guns, and rifles
  • Electronics: cell phones, laptops, tablets, computers, and TVs
  • Goods: clothing, jewellery, and watches
  • Equipments: lawnmowers, tractors, and home appliances
  • Animals: pets such as cats and dogs, and farm animals like horses and cattle

 

What should a bill of sale cover?

The bill of sale should have the 3 Ps: parties, property, and price.

  • Parties: list the buyer and seller and their respective addresses.
  • Property: list the property in detail so it is identifiable.  For example in the sale of a used vehicle, list the make, model, year, vehicle type, VIN number, and odometer reading for the car. For electronics, list the product model and serial number/ID number.  Be specific and describe in detail what product is sold.
  • Price: list the cost of the product and whether the sale price has any payable taxes.
  • Payment method: list the forms of payment used for purchase such as cash, personal check, credit card, etc.

 

What does an item being sold “as is” mean?

If an item is sold “as is” it means the seller does not guarantee the condition of the item. Basically it means the buyer will be accepting the item in its current condition and the seller will not be responsible for any flaws or defects.

 

Who should sign the bill of sale?

Typically for more expensive items like vehicles and boats both the buyer and seller should sign the bill of sale.  It’s a good practice to get both parties to sign regardless because it adds a layer of authenticity to the intention of both parties to transfer the property’s ownership.

 

Do I need to get my bill of sale notarized?

Most states do not require the notarization of a bill of sale.  However the there are six states that require the bill of sale be notarized before it can be used to transfer the ownership of a vehicle.  States that require a notary for a vehicle’s bill of sale are: Louisiana, Maryland, Montana, Nebraska, New Hampshire, and West Virginia.  For states that do not require a notary to sign the bill of sale, you should still always have both the buyer and the seller sign the document.

Despite that notarization is not required in most cases, you may still want to have the bill of sale notarized for more expensive goods such as boats and RVs, since the notarization will serve as an extra layer of authentication of the transaction in case there is any future dispute in court.