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Everything About a Bill of Sale

A bill of sale is a written document that verifies any valuable asset purchase. If you are selling or buying any significant asset, you need to create a bill of sale to save yourself from any dispute between both buyer and seller ends.

Bill of sale is commonly used during an automobile, animal or warcraft sale. The sale of personal properties also uses a bill of sale. In this article, I will let you know everything about a bill of sale and also provide you with some bill of sale templates to make one for yourself.

So sit back and go through the article, and by the end of it, you will have comprehensive knowledge about bills of sale and how to write one by yourself.

What is a bill of sale?

A Bill of sale is proof of purchase or sale of any asset. It has some necessary information about the product or asset that is sold and the information about the buyer and seller. This legal document transfers the ownership from one person to another and also makes sure that there isn’t any misunderstanding between the buyer and the seller in the transaction.

Who writes a Bill Of Sale?

Generally, a bill Of sale is written by the seller. Although in some states, car dealerships provide you with this legal document when you buy or sell a car. If it is a private sale, both the buyer and the seller must make a bill of sale and sign.

If you do not want to draft the bill of sale all by yourself, then you can always hire a lawyer. They can guide you through the process and prepare a bill of sale.

Make sure you learn about the fact that whether your state requires a state-authorized template for bill of sale documentation.

What are the things you should mention on a bill of sale?

A bill of sale of a bike, a car, or any other asset must include some mandatory information. If you do not have this essential information, the bill is void. I will guide you with what kind of information you require to mention. Just go through the points below, and you will be good to go with a proper bill of sale.

  • The seller’s name and address
  • The buyer’s name and address
  • A description of the item sold, including serial numbers, identification numbers, make, model, size, colour, design, and any distinguishing marks, features or faults.
  • The vehicle identification number (V.I.N.) and license plate number (if you’re writing it for a vehicle)
  • vehicle’s Current on going mileage
  • Conditions of sale (i.e. sold as-is, with warranty, etc.)
  • Transaction date
  • Seller purchased it from the previous owner
  • Amount Seller purchased it for (written in words and numbers)
  • Payment methods (e.g., in instalments or all at once, hard cash, check, credit card, or bank deposit)
  • Information regarding due dates, late fees and interest rates for pending payments

Make sure you have multiple copies of the document with yourself.

Bill of Sale templates

Below are a few bills of sale templates or formats you can use to write your bill of sale. Just go through them, and you will know how to draft a bill of sale.

When Should One Use a legal Bill of Sale document?

You should always use a bill of sale for the following situations:

  • If You own a property that you would like to sell and need a legal official record of the purchase detail of the product for accounting records
  • You are planning to buy a motor vehicle or any other property from a private seller and want to keep a record of the proof of purchase for legal purposes and to keep you safe from fraud and the details of your agreement in writing.
  • A Proof of purchase is required for using the bought product. Many states require a signed bill of sale when you transfer a title with a state’s department of motor vehicles (D.M.V.) or buy and sell a product.

Some transactions may involve an exchange of legal property but do not require a bill of sale; some of them are:

  • Real estate. You cannot use a bill of sale to transfer real estate between owners because real estate transactions are more complicated and require more legal work. You will always need other goverment authorized legal forms from your state or local government for a real estate transaction.
  • Performance of services. A bill of sale transfers ownership and does not services. If you’re providing or getting any kind of service, for example, business consulting or babysitting, you should use a general contractor for this kind of service. An available receipt is more than enough if you own a business that receives payment for selling products.
  • Small-scale sales. A bill of sale is not necessary for a small-scale sale. If you want a bill of sale for an inexpensive property, that is a personal preference, but many people don’t like or think it is important to create a bill of sale for the less expensive property.


Can one handwrite a legal bill of sale document?

Some states always require a bill of sale document, while others do not. If you live in a state that does not provide any bill of sale legal form, you can always choose to handwrite one for yourself. The document should include all the necessary information of a bill of sale document, and if it is signed by both parties as well as a notary, it is bound to be legally valid.

How do you write a bill of sale?

When you write a bill of sale, you include both the seller and buyer’s name and address, a complete description of the sold item, the vehicle’s identification number, conditions, date, the amount paid, previous owner, method of payment and any other agreements between the buyer and seller.

What is a bill of sale document?

Any bill of sale is a legal document that serves as proof of purchase and sale and the subsequent legal ownership of an item. It is most often used to purchase a large item like a vehicle. It may be later used to determine how much sales tax you owe.

Is a bill of sale a legal document?

Yes, a bill of sale is a legal document that is used to record the transfer of ownership of a purchased item to the buyer in exchange for money. This legal document protects both the buyer and the seller if any disagreement arises in the future.

Final words

This article was all about bills of sale and how to write them. I have also mentioned some bill of sale templates in the article so that you can have a clear idea about how to draft one and what things to note in it. I hope this was helpful, and now you have a good amount of knowledge regarding bills of sale. That is all for today. Thank you for your precious time.

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