A Bill of Sale is a form that a seller uses to document the sale of an item to a buyer. It serves as a receipt for personal sales and purchases and includes buyer and seller information and details about the goods, their location, and the price. If you are looking for a contract that includes warranties or more specific terms for the buyer, LawDepot also offers a Sales Agreement form.

Both parties should fill out and retain a copy of the signed Bill of Sale as a proof of purchase or as a proof of payment. A Bill of Sale should only be used for purchases where payment is made in full at the time of purchase, and both parties accept to buy and sell the item in its current condition ("as-is").

"As is" is an important term in a Bill of Sale form. It means that the item was bought and sold in its current condition and that the buyer is accepting the item with all of its faults, whether they are apparent or not.

"As is" protects the seller from having to refund the buyer for any item-related issues after the item has been received and paid for.

A Bill of Sale is used to protect both the seller and the purchaser in the case of any future issues. Since many purchases and sales between individuals are transacted using cash, it can be hard to prove that an item was received or paid for without proper documentation. For instance, in some states, such as California, a written Bill of Sale is recommended if you are buying or selling an item worth $500 or more. Without a written Bill of Sale, there might be no recourse for the buyer or seller in the event of a legal dispute.

A Bill of Sale also acts as a receipt for both parties. The seller can use it to prove that an item was sold to the purchaser "as is", and the buyer can use it to prove that the agreed upon payment (including any trades) was made in full to the seller. It also provides a sale date to both parties, which can show when the responsibility of the item was transferred. Both the purchaser and the seller can use a Bill of Sale as evidence of the price paid for tax purposes.

If the item happens to be insurable, you may need to provide documentation to prove that you are the legal owner, or that you are no longer in possession of the item. In other words, if completed correctly, a Bill of Sale can be used as proof of ownership.

You can use a Bill of Sale form for a variety of items, such as:

• Cars, motorcycles, RVs, or other vehicles
• Appliances, tools, and exercise equipment
• Boats and other watercrafts
• Aircrafts
• Animals, including horses, cats, and dogs
• Furniture
• Personal property, such as bikes, clothing, and jewelry

It is important to note that if you are buying or selling a vehicle for $500 or more, depending on your state, a Bill of Sale might be required to register the vehicle. It's recommended that you check the laws in your local jurisdiction to determine what you might need to properly buy or sell a vehicle in your area.

When you're selling or buying an item, the Bill of Sale should list the payment method that the buyer used to obtain the item. Common payment methods that you can include in a Bill of Sale are cash, email transfer, mobile or internet banking (Venmo, PayPal, etc.) and trade (list the item that is being traded for another item).

It is not recommended that you use a Bill of Sale in instances where there isn't a transfer of ownership since a Bill of Sale is best used for the sale and purchase of physical goods. When providing or hiring services, it's more appropriate to use a document like a Service Agreement or an Independent Contractor Agreement.

It should also be noted that you can't use a Bill of Sale to transfer the ownership of or the title to a piece of real estate. In such instances, you'll likely need a Warranty Deed or a similar document.

A Bill of Sale should be used by anyone who is looking to sell or purchase an item. This includes:

• When purchasing, selling, or trading an item through a buy, sell, or trade website
• When trading vehicles or other items
• When selling or purchasing a used item
• When purchasing or selling an item through a private sale
• When selling or purchasing a high-valued item

Using a Bill of Sale is recommended even when selling or trading items with friends or family members because of the document's power to show proof of ownership.

For example, if a parent gifts or sells their vehicle to their child, the child will need a Bill of Sale to prove their ownership of the car so they can get it registered and insured.