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 includes buyer and seller information and details about the item(s).

Both parties should fill out and retain a copy of the signed Bill of Sale as proof of purchase. Use a Bill of Sale for transactions where payment is made in full and both parties accept the item in its current condition ("as is").

If you’re looking for a contract that includes warranties or more specific terms for the buyer, LawDepot also offers a Sales AgreementSales Agreement form.

"As is" means that the item will be sold in its current condition and the buyer accepts the item with all of its faults. This term protects the seller from having to provide a refund for any item-related issues after the buyer pays and receives the item.

The term “as-is without any warranties” means that the seller doesn’t guarantee the quality of the product to the buyer. In this case, the seller isn’t liable for any imperfections or flaws in the goods (provided they don’t take steps to hide those flaws or lie about their existence).

Anyone looking to buy or sell an item should use a Bill of Sale. This includes people:

• Conducting sales or trades on an online platform
• Buying or selling previously-owned items
• Buying or selling high-value items
• Buying or selling items privately

Friends or family members who gift items to each other may also use a Bill of Sale to show proof of ownership. For example, if a parent gifts their used vehicle to their child, the child will need a Bill of Sale to prove ownership and register and insure the car.

A Bill of Sale helps protect both the seller and the buyer from any future issues. Using cash to buy an item without proper documentation makes it hard to prove that the buyer paid and received the item.

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 evidence of the transaction for the buyer or seller in the event of a dispute or for tax purposes.

By using a Bill of Sale as a receipt, the seller can prove that an item was sold “as is”. Also, the buyer can prove that they gave the agreed-upon payment (including any trades) in full to the seller.

If an item is insurable, you may need to prove that you’re the legal owner before you can obtain insurance. If completed correctly, a Bill of Sale provides proof of ownership and its date shows when ownership transfers from seller to buyer.

Customize your Bill of Sale template for a variety of items, such as:

• Cars, boats, and aircrafts
• Trailers, campers, and mobile homes
• Appliances, tools, and exercise equipment
• Animals, including horses, cats, and dogs
• Personal property, such as bikes, clothing, and jewelry
• Electronics, such as phones or speakers
• Firearms
• Furniture

When writing a description for an item, give details of its appearance and condition. For instance, you can write about the item’s color, dimensions, shape, age, missing components, and manufacturer's information.

If the item is a piece of equipment or a vehicle, be sure to include any relevant identification numbers (such as a VIN, HIN, or serial number). A serial number gives the item a distinctive identification, sometimes used for insurance purposes, that enables police to identify the property if it’s ever stolen.

Keep in mind that you cannot use a Bill of Sale to transfer the title to a piece of land or real estate. In such instances, you'll likely need a Warranty DeedWarranty Deed or a Real Estate Purchase AgreementReal Estate Purchase Agreement.

When providing or hiring services, it's more appropriate to use a document like a Service AgreementService Agreement or an Independent Contractor AgreementIndependent Contractor Agreement. A Bill of Sale only works where there is a transfer of ownership of physical goods.

To create a Bill of Sale, simply fill out LawDepot’s questionnaire. The information you’ll need includes:

• Buyer and seller details
• A description of the item being sold
• The location of the sale
• The price, sales tax, and form of payment
• Any loans or liens on the item

Common payment methods that you can use in a Bill of Sale are cash, electronic transfers, and trades (such as another item of value). For e-transfers, be sure the bank deposits the funds into your account before providing the item to the buyer.

You can also use a bank draft or certified check. A bank draft is a check that a bank writes on an account with another bank; it’s an extremely secure method of transferring funds. A certified check is a check that a bank guarantees. In this case, the bank confirms that there are enough funds in the account to meet the amount needed for the sale.

Typically, only the seller signs the Bill of Sale. However, some jurisdictions require the buyer to sign for some or all types of transactions. Check if your local or state laws require the buyer’s signature for your specific sale. If you’re unsure of your jurisdiction's requirements, the buyer may sign the Bill of Sale to ensure its validity.

Most jurisdictions don’t require that a Bill of Sale contain witness signatures. But having one or two witnesses is better evidence that the parties entered into the Bill of Sale if the matter goes to litigation.

Some states may require you to notarize your document. Getting a notary public to witness the buyer’s and seller’s signatures helps prove the document’s authenticity. This verification is useful if there’s a future dispute.

Deliver the Bill of Sale to the buyer once you receive full payment of the agreed-upon purchase price. Full payment includes the provision of a Promissory NotePromissory Note for any outstanding balance the buyer owes.