Bill of Sale Information
Alternate Names:
A Bill of Sale is also known as a:
- Proof of Purchase
- Sales Receipt
- Vehicle Bill of Sale
What is a Bill of Sale?
A Bill of Sale is a sales receipt used to document a transaction between a seller and a buyer. It provides proof that the ownership of an item was transferred from one party to another. With a Bill of Sale, the item is generally sold "as is".
What does "as is" mean in a Bill of Sale?
To sell an item "as is" means that the item is typically past or ineligible for the manufacturer's warranty, and the seller does not guarantee the quality of the item and will not be liable for any of its imperfections.
In other words, when a transaction occurs "as is", the buyer has agreed to purchase the item in its current condition with the understanding that the seller is not responsible if the item stops working or malfunctions.
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, kilometrage, model type, year, VIN, 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
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
What is the difference between a Bill of Sale and a Sales Agreement?
A Bill of Sale is generally used for private sales between two parties where the transaction is relatively straightforward: money is exchanged, and the ownership of the item transfers from the original owner to a new owner.
A Sales Agreement is used for more complex transactions where more details about the sale are required, such as information about any warranties on the item. A Sales Agreement can also be used to cover any services relating to the item, such as installation fees. For instance, if a small business that sells and repairs electronics offers computers for sale and they want to give the customer more options with their purchase, such as installations, then a Sales Agreement could be used to outline the cost of the installation, as well as information about any warranties that may be available on the computers.
However, if services are the only thing being exchanged for compensation in the transaction, it is recommended that you use LawDepot's Service Agreement instead.
Do I need a Bill of Sale to buy a used car?
A Bill of Sale is strongly recommended in most provinces when buying or selling a new or used vehicle in a private sale. Without a Bill of Sale, it might be difficult to prove that the vehicle changed ownership, so some provinces require a Bill of Sale in order for the new owner to register the vehicle and obtain insurance.
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