What is a Bill of Sale?

A Bill of Sale is a written document that records the private sale of personal property between a buyer and a seller. It serves as written proof that ownership of an item has transferred, and outlines key details—namely, the sale date, purchase price, payment method, and the item description.

As the seller, you’re usually responsible for creating the Bill of Sale. Once signed, both you and the buyer can keep a copy for your records.

Private sale rules can vary by state and territory. LawDepot’s customisable Bill of Sale template is available for:

• Australian Capital Territory

• New South Wales 

• Northern Territory

• Queensland 

• South Australia

• Tasmania 

• Victoria

• Western Australia 

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

What is an “as-is” Bill of Sale?

An “as-is” Bill of Sale states that the buyer accepts the item in its current condition, including any visible or disclosed faults.

An as-is clause can help record that the buyer accepted the item in its current condition. However, sellers should not intentionally hide known defects or misrepresent the item.

If a dispute does arise later, an as-is Bill of Sale can help demonstrate that the buyer inspected or accepted the item in its existing condition, including any flaws or need for repair.

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

When to use a Bill of Sale

Use a Bill of Sale to document the sale and transfer of ownership of personal property from a seller to a buyer.

LawDepot’s Bill of Sale template can be used for personal property such as:

• Motor vehicles, including cars, trucks, vans, and dirt bikes

• Trailers and caravans

• Watercraft, including motorboats, sailboats, and jet skis

• Animals and livestock, including horses, goats, cattle, and dogs

• Personal items, including phones, clothing, and jewellery

• Household items, including furniture and kitchen appliances

• Mobile or manufactured homes

• Equipment

• Firearms

• Artwork

A Bill of Sale is generally used for personal property, not real estate, business, or company shares. To sell a business, use LawDepot’s Purchase of Business Agreement. Alternatively, use our Contract for Sale of Real Estate to sell real property.

Key benefits of using a Bill of Sale

A Bill of Sale provides both the buyer and the seller with written evidence of the transaction. 

While some agreements related to the private sale of goods and services may be made verbally, a written record can be easier to rely on if questions or disputes arise. 

A Bill of Sale can help by:

• Proving the transaction took place: It records the sale date, price, item description, and buyer and seller details.

• Confirming ownership transfer: It shows that the buyer paid for the item and that the seller agreed to transfer ownership.

• Documenting the item’s condition: An as-is clause can help show that the buyer accepted the item in its current condition.

• Reducing future disputes: If there is a disagreement, the Bill of Sale can help prove what both parties agreed to at the time of sale.

• Supporting registration or licensing requirements: Can support ownership or registration for vehicles or vessels in some Australian states, such as Western Australia or New South Wales.

• Keeping records for tax or financial purposes: Either party may need a copy of the Bill of Sale for future tax, accounting, or personal recordkeeping purposes.

How do I write a Bill of Sale?

LawDepot’s questionnaire helps you create a customised Bill of Sale that you can download as a PDF, print, and sign. 

Start by selecting the type of item you’re selling, such as a motor vehicle, trailer, watercraft, animal, or other personal property. Then, complete the following steps:

1. Select the location of the property

Choose the state or territory where the item is being sold. LawDepot’s template is customisable for each Australian state and territory.

In some cases, a Bill of Sale can also be made under the state or territory where the seller resides, unless local tax, environmental, or other legal requirements apply.

2. Describe the item being sold

Describe the item in detail. The information you include will depend on what you’re selling.

For example, if you’re selling a boat, you may need to include details such as the make, model, year, and hull identification number (HIN). If you’re selling a car, you may need to include the year, make, model, body type,  vehicle identification number (VIN), and odometer reading.

The more detail you provide, the stronger your record will be. A clear item description can also support the as-is clause and help prevent later disputes about the item’s condition or features.

3. Include the seller and buyer details

Add the full names and addresses of both the seller and buyer.

If either party is a company, include the company’s incorporated legal name rather than its trading name.

4. Add payment information

Include the key payment details for the sale, such as:

• Purchase price

• Sales tax, if applicable

• Payment methods such as cash, bank cheque, Promissory Note, or electronic funds transfer

If the item is subject to finance, a registered security interest, or another claim, disclose this in the Bill of Sale. Unless otherwise addressed, the seller is generally responsible for any outstanding amounts attached to the item.

5. Provide final details

Add any extra clauses needed for your sale. Although LawDepot’s template includes an as-is clause, you can also specify known faults, required repairs, or other important details about the item.

Finally, add the signing details, including the signing date and any witnesses. Buyer signature requirements may vary by jurisdiction, but having both the buyer and seller sign is generally best practice.