Bill of Sale
A Bill of Sale is also known as a:
- Proof of Purchase
- Sales Receipt
Bill of Sale Definition
A Bill of Sale is a sales receipt used to document a transaction between a seller and a buyer. It provides proof that ownership of an item was transferred from one party to another.
When should I use a Bill of Sale?
A Bill of Sale should be used when you purchase or sell an item privately.
What items can I use a Bill of Sale for?
A Bill of Sale is commonly used for:
- Vehicles or automobiles, such as used cars, trucks, or motorcycles
- Trailers or recreational vehicles (RVs)
- Equipment, electronics, tools, or furniture
- Animals, such as horses or cattle
- Boats or aircrafts
- Personal property
What is the difference between a Bill of Sale and a Sales Agreement?
A Sales Agreement is used for detailed transactions and allows you to include additional information, such as warranties on the goods. A Bill of Sale is a simple sales receipt intended for straightforward purchases that are "as-is without any warranties".
What does "as-is without any warranties" mean?
To sell an item "as-is without any warranties" means that the seller does not guarantee the quality of the item and is not liable for any of its imperfections. When a transaction occurs "as-is", the buyer has agreed to purchase the item in its current condition and will often inspect the goods before payment.
The Importance of Using a Bill of Sale
With many private transactions, it can be hard to prove that the transfer of property occurred without a proper Bill of Sale. This form provides evidence that ownership shifted from one party to another, especially in transactions involving cash.
A copy of the Bill of Sale should be retained by both parties for their records, so if there were ever any discrepancies regarding the sale, this document would prove the item changed hands. For instance, if a buyer purchased a used car from its previous owner, they may need to produce a Bill of Sale in order to register the vehicle.
What is included in a Bill of Sale?
A Bill of Sale typically includes:
- Buyer and seller information
- Information about the item (e.g. Mileage, model type, year, VIN, mileage declaration, and more for vehicles)
- Where and when the item was sold
- Price, including which form of payment was used, and if taxes were included
- Any loans or liens on the item