Free Bill of Sale

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Bill of Sale



Not applicable

demand draft
internet banking
promissory note

Frequently Asked Questions
What is a Demand Draft?A Demand Draft is a Certified Cheque written by one bank on its account with another bank. It is an extremely secure method of transferring funds. What is a Promissory Note?Promissory Note is a legal document evidencing that the borrower will repay a loan to the lender under the terms agreed upon in the contract. A Promissory Note may also be referred to as an "I.O.U." or a Loan Note. What if it is a gift?If you wish to transfer the property as a gift, then use a nominal amount such as ₹1.00 or ₹10.00 as the price.

Your Bill of Sale

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Motor Vehicle Bill of Sale

IN CONSIDERATION of ___________________ of ____________________ (the 'Purchaser') providing ₹____________  INR, which includes all sales taxes (the 'Purchase Price'), the receipt and sufficiency of which consideration is hereby acknowledged to ______________________ of ____________________ (the 'Seller'), the Seller SELLS AND DELIVERS the Motor Vehicle to the Purchaser.

PURCHASE PRICE: The Purchaser will pay the Purchase Price to the Seller by cash.

MOTOR VEHICLE: The Seller will sell and deliver to the Purchaser the following motor vehicle (the 'Motor Vehicle'):

  • Make: ________________________
  • Model: __________
  • Year: __________
  • Body Type: __________
  • Vehicle Identification Number (VIN): ________________________
  • Odometer Reading: __________ kilometres

WARRANTIES: The Seller warrants that the Motor Vehicle is free of any liens and encumbrances and that the Seller is the legal owner of the Motor Vehicle. The Seller also warrants that the Seller has the full right and authority to sell and deliver the Motor Vehicle and that the Seller will defend the title of the Motor Vehicle against any and all claims and demands.

'AS IS' CONDITION: The Purchaser acknowledges that the Motor Vehicle is sold 'as is'. The Seller expressly disclaims any implied warranty as to fitness for a particular purpose and any implied warranty as to merchantability. The Seller expressly disclaims any expressed or other implied warranties.

WORKING ORDER: Any warranty as to the condition or working order of the Motor Vehicle is expressly disclaimed by the Seller.

MANUFACTURER'S WARRANTY: Any disclaimer of warranties by the Seller in this Bill of Sale will not in any way affect the terms of any applicable warranties from the manufacturer of the Motor Vehicle.

LIABILITIES: The Seller does not assume, nor does the Seller authorise any other person on the behalf of the Seller to assume, any liability in connection with the sale or delivery of the Motor Vehicle.

INSPECTION: The Purchaser accepts the Motor Vehicle in its existing condition given that the Purchaser has either inspected the Motor Vehicle or was given the opportunity to inspect the Motor Vehicle but chose to not inspect it.

This Bill of Sale will be construed in accordance with and governed by the laws of the State of .

this ________ day of ________________, ________.




Receipt of original copy
is hereby acknowledged by


Purchaser: ___________________
Address: ____________________


Last updated March 27, 2024

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What is a Bill of Sale?

A Bill of Sale documents a private sale between two parties: the purchaser and the seller. It acts as a sales receipt for the exchange of goods for compensation. A Bill of Sale helps prove the transfer of an item’s ownership from the seller to the purchaser.

A Bill of Sale is also known as a/an:

  • As-is Bill of Sale
  • Proof of sale
  • Sales receipt

What can I use a Bill of Sale for?

Use a Bill of Sale agreement to document the private sale of goods. You can use a Bill of Sale for the sale of:

  • Motor vehicles: such as cars, trailers, bikes, ATVs, motorcycles, or other automobiles
  • Equipment or tools: such as tractors, exercise equipment, or power tools
  • Watercraft: such as boats or jet skis
  • Animals: such as goats, horses, or other livestock
  • Personal property: such as clothing, furniture, and jewellry

Remember that you can’t use a Bill of Sale to sell real estate or transfer a land title.

How do I make a Bill of Sale?

You can create a Bill of Sale on your own using LawDepot’s Bill of Sale template. Complete the following steps:

1. Provide property details

Start by providing the property’s location. The current location of the property typically governs a Bill of Sale.

Next, provide the property’s details. For example, if you are selling a motorcycle, you will need the following information:

  • Make
  • Year
  • Model
  • Body type
  • Odometer reading
  • Vehicle ID number (VIN)

2. Supply both parties’ information

List the name and address of both the seller and the purchaser. If necessary, you can add more than one seller or purchaser to your Bill of Sale.

If the seller is a company, you should use its incorporated name instead of its trade or business name (e.g., ABC Limited rather than Alphabet Sales).

3. Provide the price

Provide the property’s price. If sales taxes are applicable, you can choose to include them in the price or in addition to the price. Include the form of payment. The purchaser can make a payment in the following forms:

  • Demand draft
  • Cash
  • Internet banking
  • Promissory note
  • Other

Demand drafts are certified cheques written by one bank on its account with another bank. It’s an extremely secure method of transferring funds.

A Promissory Note is a legal document evidencing that the borrower will repay a loan to the lender under the terms agreed upon in the contract.

If you wish to transfer the property as a gift, then use a nominal amount such as ₹1.00 or ₹10.00 as the price.

4. Note any loans or liens

If there are any loans or liens against the property, make sure to note them. Describe the name of the lender, the current amount, and the terms such as interest rates and payment terms.

If a loan or lien will pass to the purchaser, then the purchase price should be reduced by a corresponding amount.

In almost all cases, the purchaser shouldn’t accept a Bill of Sale where there’s a loan or lien against the property unless the purchaser intends to accept full responsibility for that outstanding debt.

5. Add additional clauses

You should include an additional clause if there are any terms or issues unique to your situation that aren't addressed in the questionnaire.

In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length.

6. Sign the document

Provide the date on which both parties will sign the document. If you’re not sure when the parties will sign, select “unsure” in the questionnaire.

By selecting "unsure" for the question, you’ll get a blank line to fill in with the correct date after you have printed the document.

Some jurisdictions require the purchaser to sign the Bill of Sale while others only require the seller’s signature. Check your local laws to verify whether you are required to include the purchaser's signature. It won't cause any problems if the purchaser signs the Bill of Sale, so it’s best to have the purchaser sign the document if you’re unsure.

Most jurisdictions don’t require that the parties sign the Bill of Sale in front of witnesses. However, if there is an ownership dispute, having an objective witness provides evidence that the parties entered into the Bill of Sale in good faith. Having at least one witness is a good idea, especially if the parties are individuals instead of companies.

Can you make your own Bill of Sale?

You don’t need a lawyer to create a Bill of Sale, and it’s entirely possible to handwrite the document. However, there are certain criteria that the document needs to meet to be valid. To ensure that you include all the necessary details, simply complete our Bill of Sale template and print off the document.

What’s the difference between a Bill of Sale and an invoice?

A Bill of Sale is a document that records the exchange of goods for compensation. In comparison, an invoice is a document that a seller provides to a buyer, outlining how much money they owe.

In some instances, a seller provides an invoice before they receive payment. The seller or buyer produces a Bill of Sale after the transaction is complete.

Similarly, a receipt isn’t a Bill of Sale, but a Bill of Sale may serve as a receipt.

Can you back out of a Bill of Sale?

The seller shouldn’t deliver the Bill of Sale to the buyer until they’ve received full payment from the buyer. This way, the seller protects themselves by receiving full payment before transferring ownership to the buyer.

Because the seller should deliver a Bill of Sale after receiving payment, they should return the payment if they decide to no longer sell the item. If the buyer wants to back out of the sale after the transaction is complete, they will have to consult the seller, who has every right to refuse them after the sale.

Related Documents:

  • Loan Agreement: Outline the terms of a loan between a borrower and lender, and set out a payment plan for the borrower to repay the lender.
  • Promissory Note: Document a loan between two parties.
  • Financial Statement: Detail your current financial status, including your total assets and liabilities to determine your total net worth.
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