Bill of Sale

Whenever you sell or even gift something of value, it is always a good practice to have paperwork to cover the transaction. This documentation should include a bill of sale confirming the property transfer from the seller to the buyer.

A bill of sale template comes in handy to ensure that you will have a valid legal document with all required pieces of information included and that no important data are missed. Below we provide a detailed guide to the bill of sale and explain how to draft one to secure your transactions.

A bill of sale serves as a receipt confirming the property transfer from the seller to the buyer as a result of selling, trading in, or gifting. A printable general bill of sale identifies the parties to the transaction and the transferred property and outlines the terms of the transfer, including the sales price, warranties (if present), and other details.

A bill of sale is valid as long as it contains all necessary information and is signed by the seller and the buyer if required by state law. Although there is no prescribed format for a bill of sale, using this template helps to ensure that all applicable legal requirements are addressed.

When you sell various types of property, you may need different bill of sale templates reflecting the nature and the specifics of the transaction. The bill of sale can come with the warranty or be an "as-is" sales receipt if no warranty is implied. Finally, the bill of sale template can be notarized if required by state law.

Depending on the property sold, there can be the following types of bill of sale:

The seller is always responsible for drafting the bill of sale, whereas the purchaser needs to read over the document and sign after agreeing to the terms of the contract. The following is a step-by-step guide for how to create a bill of sale for both parties.

A bill of sale is a legal document used for purchase and sale deals and title transfers. It proves that the purchase and sale operation occurred on a specific date in a particular location and helps to prevent disputes between the parties.

If you want to transfer ownership of the item to another person, you will need a well-prepared bill of sale to register the new title. The signed bill of sale may be required to apply for a title at your local department of motor vehicles (DMV) or probate office. This ownership transfer procedure is required in several US states but is recommended in all jurisdictions.

After you sign a proof of purchase, you may need to pay a sales tax if it applies to your purchase and sale deal. For example, when the subject of the bill of sale is a car, the buyer must pay sales tax based on the state or county where the deal occurs or where the new owner registers the car. A seller can include the tax in the car price or split the fees.

Although the bill of sale is useful for transferring ownership of property between two people, there are times when buyers and sellers can proceed with a transaction without a bill of sale. Below are some general examples of when a bill of sale is not required:

Not all states require a bill of sale to certify ownership. According to state law, a bill of sale is only needed in specific jurisdictions. Below are the states where you should submit your bill of sale to obtain your ownership certification.

Below are the states where you should submit your bill of sale to obtain your ownership certification.

Nevertheless, it is still recommended to have a bill of sale even if not required by state law. These legal documents can help buyers track sale information and help relieve sellers of liability over the property. They also serve as proof of ownership in case either party tries to deny the transaction, and they define the purchase condition in case of any claims on the warranty.

As with the requirement for a bill of sale, it is still advisable to have the agreement notarized, even if it isn’t required by state law. Notarization acts as an extra layer of verification and makes the document more permissible in a court of law in case of any disputes.