A bill of sale is a written record that ownership of personal property has transferred from seller to buyer. It's simple, but it's the document that proves you own what you bought — or that you no longer own what you sold.
When you need a bill of sale
- Selling a vehicle — most states require a bill of sale for title transfer.
- Selling equipment or machinery — protects both buyer and seller.
- Selling personal property — electronics, furniture, art, or anything of value.
- Business asset sale — as part of a larger transaction.
What a bill of sale should contain
- Parties — full legal names and addresses of buyer and seller.
- Property description — detailed enough to identify the item (make, model, serial number, VIN, year).
- Purchase price — the amount paid.
- Payment method — cash, check, wire, or financing.
- Date of sale — when ownership transfers.
- Condition — "as is" or with warranties.
A bill of sale is not a contract — it's a receipt. If you need terms (warranties, return policies, financing), you need a sales agreement in addition to the bill of sale.
"As is" vs. with warranty
- As is — the buyer accepts the item in its current condition. No warranties. This is standard for used goods and private sales.
- With warranty — the seller guarantees the item works as described for a specific period. Common in dealer sales.
State-specific requirements
Some states require a bill of sale for vehicle transactions to include odometer readings. Others require notarization for high-value items. Check your state's requirements.
Make it legal
- Both parties sign.
- Each party keeps a copy.
- Attach any supporting documents (maintenance records, title, inspection reports).
A state-specific bill of sale drafted to your transaction takes about ten minutes.