A Bill of Sale is a legal document that details the private sale of personal property between a buyer and a seller. It records the ownership transfer and outlines key information such as the date, price, and description of the sold item. 

As a seller, you’re usually the one to create a Bill of Sale. Both you and the buyer should retain a copy of the document. 

Rules for each state and territory vary regarding private sales. LawDepot’s customisable template is available for:

• Australian Capital Territory (ACT)
• New South Wales (NSW)
• Northern Territory (NT)
• Queensland (QLD)
• South Australia (SA)
• Tasmania (TAS)
• Victoria (VIC)
• Western Australia (WA)

A Bill of Sale is also known as a sales receipt or proof of purchase.

An as-is Bill of Sale determines that a buyer accepts purchasing an item in its current condition despite any flaws. 

Without an as-is clause, the seller could be responsible if the buyer discovers something wrong with the item after the sale. Additionally, sellers cannot intentionally hide known defects of the item they’re selling. So, having an as-is clause protects you, the seller, when the buyer agrees to purchase the item in its current state. 

If there is any dispute regarding the item's condition in the future, the as-is Bill of Sale will help prove that the buyer knowingly purchased it with its flaws or need for repair. 

LawDepot’s template automatically includes an as-is clause to help protect your sale.

A Bill of Sale is used when selling personal property in a private sale and should be completed once you receive the full payment. However, using a Bill of Sale is generally not the best option if the buyer pays in instalments. If you’re looking to complete a sale where the buyer pays in instalments, consider using LawDepot’s Sales Agreement to help protect the agreed-upon terms of the sale.

You should also create a Bill of Sale when giving certain items as gifts. For example, if you’re gifting your old motorcycle to your nephew for his birthday, you may need to create a Bill of Sale for insurance, registration, and title transfer. In these instances, you can put the sales price at $1. 

LawDepot’s user-friendly template allows you to create a Bill of Sale when transferring the ownership of personal property. Items you’re selling can include:

• Motor vehicles (e.g., cars, trucks, vans, and dirt bikes)
• Trailers and caravans
• Watercraft (e.g., motorboats, sailboats, and jet skis) 
• Animals and livestock (e.g., equine, goats, cattle, and dogs)
• Personal items (e.g., phones, clothing, and jewellery)
• Household items (e.g., furniture and kitchen appliances)
• Mobile or manufactured homes
• Equipment
• Firearms
• Artwork

You cannot use a Bill of Sale to purchase real estate, a business, or the shares of a company. If you’re looking to sell a business, use LawDepot’s Purchase of Business Agreement. Alternatively, use our Contract for Sale of Real Estate to sell real property. 

You should use a Bill of Sale as it provides evidence of a transaction. Though verbal agreements can be binding, having a written record can protect both you and the buyer. 

This document can assist in ensuring that there are no misunderstandings or future issues regarding the sale. If a dispute occurs, you can prove the price, condition of the item, and the buyer’s acceptance of those terms using your Bill of Sale. 

In addition, a Bill of Sale proves the buyer paid for the item and is now the owner. Depending on the property, the buyer may need to obtain the title to the property or confirm that the item is legally in their possession. 

For example, the Western Australia Department of Transport permits a person licensing a motor vehicle or registering a vessel to provide a Bill of Sale to establish proof of ownership. Additionally, New South Wales allows a Bill of Sale as proof of registration entitlement when someone wants to register a used vehicle.

Lastly, you or the buyer may also need a Bill of Sale for future tax purposes. 

LawDepot’s questionnaire lets you create a Bill of Sale that you can download as a PDF to print and sign. First, select the kind of item you’re selling. This can be a motor vehicle, trailer, watercraft, animal, or other. Then, complete your document with the following steps:

1. Select the location of the property

Our template is customisable for each state and territory. Select where the item is being sold to create a valid Bill of Sale for your jurisdiction.

A Bill of Sale can also be made under the state where you or the seller reside, but only if there are no overriding tax or environmental restrictions. 

2. Give details of the item being sold

A Bill of Sale must have thorough details about the item being sold. For example, if you’re selling a boat, you must include information like the make, model, and hull identification number (HIN). 

The more information you provide, the better. Adding features about the item will also strengthen the documentation for an as-is Bill of Sale. This can help if there is any issue regarding the condition or features of the item at a later date.

3. Include the seller and buyer details

Next, include the names and addresses of both you and the buyer. If either party is a company, you should include its incorporated name rather than its trade name.

4. Add payment details

Follow with including all the payment details for the sale. This includes:

• Price
• Sales tax
• Payment method (i.e., cash, bank cheque, Promissory Note, electronic funds transfer)

If the item being sold has any loans or liens, they must be included in your Bill of Sale. The seller will have to accept responsibility for anything outstanding on that item.

5. Provide final details

You can include any additional clauses that may be necessary for your sale. Even though LawDepot’s template automatically includes an as-is clause, you can specify if there are any other particular repairs or faults to the item to make a stronger agreement. 

Finally, add your signing details. This will include the date of signing if you have one arranged already. You can also include the number of witnesses you’ll have when you sign the document. 

In some jurisdictions, the buyer isn’t required to sign a Bill of Sale. You can check with local requirements or ask a lawyer to see if the buyer must also sign. Alternatively, you can still have them sign for best practice.

Notarising your Bill of Sale in Australia is not a legal requirement. However, a witness may be required at certain times, such as when a Bill of Sale is a security instrument in New South Wales.

It’s beneficial to have your document notarised to validate the signatures when the sale is complete. Alternatively, having up to two third-party witnesses can help prove the validity of both parties’ signatures.