Bill of Sale

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Bill of Sale Generator

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E-Signature Valid

Bills of sale are valid with electronic signatures in all 50 states under the ESIGN Act.

Sample Bill of Sale Generated by Legal Tank

Bill of Sale

Parties

1.1

This Bill of Sale (this "Bill of Sale") is made on [____________] by and between [____________] ("Seller") and [____________] ("Buyer").

Property Description

2.1

Seller hereby sells, transfers, and conveys to Buyer the following personal property (the "Property"): [detailed description including make, model, serial number, condition, and any identifying characteristics: ____________].

Purchase Price

3.1

The total purchase price for the Property is [$__________] (the "Purchase Price"), payable by [cash / check / electronic transfer / other: ____________].

Payment

4.1

Buyer has paid the Purchase Price in full upon execution of this Bill of Sale. Seller acknowledges receipt of the Purchase Price. [OR: Buyer shall pay the Purchase Price as follows: ____________.]

View all 9 sections

Transfer of Title

5.1

Seller hereby transfers and conveys to Buyer all of Seller's right, title, and interest in and to the Property, free and clear of all liens, encumbrances, and claims, effective upon execution of this Bill of Sale and receipt of the Purchase Price.

Condition and Warranty

6.1

The Property is sold ["AS IS" without any warranties, express or implied, including warranties of merchantability or fitness for a particular purpose / with the following warranty: ____________]. Buyer has inspected the Property and accepts it in its present condition. [OR: Seller warrants the Property against defects for ______ days from the date of sale.]

Representations

7.1

Seller represents that: (a) Seller is the lawful owner of the Property; (b) Seller has full right and authority to sell the Property; (c) the Property is free from all liens and encumbrances; and (d) Seller will defend Buyer's title against all claims. Buyer represents that Buyer has inspected the Property and is satisfied with its condition.

Indemnification

8.1

Seller shall indemnify Buyer against any claims arising from Seller's ownership of the Property prior to the date of sale. Buyer shall indemnify Seller against any claims arising from Buyer's ownership after the date of sale.

Governing Law

9.1

This Bill of Sale shall be governed by the laws of the State of [_____________]. This document constitutes the entire agreement regarding the sale of the Property and may be amended only in writing signed by both parties.

What Is a Bill of Sale?

A bill of sale is a legal document that records the transfer of ownership of personal property from a seller to a buyer in exchange for monetary consideration or other value. This instrument serves as written evidence of the transaction, documenting the identities of the parties, a description of the property, the purchase price, and the date of transfer. While it does not convey title in the same way a deed transfers real property, a bill of sale is the primary legal record of a personal property sale and may be required by state agencies for registration and tax purposes.

Bills of sale are most commonly associated with vehicle transactions, but they apply equally to boats, trailers, livestock, equipment, furniture, electronics, and any other form of tangible personal property. In vehicle transactions, the bill of sale works alongside the certificate of title - the title is the official government document proving ownership, while the bill of sale documents the specific terms of the purchase including the price paid, which the DMV uses to calculate sales tax and registration fees. Many states require a bill of sale to be submitted with the title transfer application.

The legal effect of a bill of sale depends on whether the property is sold with a warranty or in as-is condition. An as-is bill of sale explicitly states that the seller makes no guarantees about the condition, quality, or fitness of the property, and the buyer accepts all risk - sellers may also consider having the buyer sign a liability waiver for additional protection. A bill of sale with warranty, by contrast, includes the seller's representations about the property's condition and may provide the buyer with legal recourse if those representations prove false. These warranty and disclaimer provisions are governed by Article 2 of the Uniform Commercial Code (UCC), which establishes the default rules for the sale of goods including implied warranties of merchantability and fitness for a particular purpose. Understanding this distinction is critical for both buyers and sellers to properly allocate risk.

Statutory Requirement: Under UCC § 2-316, an as-is disclaimer must use conspicuous language to effectively exclude implied warranties. Many courts require the disclaimer to be set apart in bold, capitalized text, or a contrasting font, burying it in fine print is grounds for a buyer to argue the warranty was never validly disclaimed.

Enforcement Note: For vehicle sales above $5,000, photograph the odometer at the time of sale and attach the photo to both copies of the bill of sale. Federal law (49 U.S.C. § 32705) requires written odometer disclosure on title transfer, and this photographic evidence resolves the majority of post-sale odometer fraud disputes before they escalate.

From an evidentiary standpoint, a bill of sale creates a contemporaneous written record that can be invaluable in disputes about ownership, purchase price, or the terms of the transaction. Without a written bill of sale, parties may be forced to rely on oral testimony and circumstantial evidence, which is inherently less reliable and persuasive. Courts and state agencies strongly prefer documented transactions, and a properly executed bill of sale can resolve ownership disputes, insurance claims, and tax assessments definitively. You can review our bill of sale form download to see the standard format and essential clauses before creating your own.

Why You Need a Bill of Sale

You are buying or selling a used vehicle through a private-party transaction and need to document the sale price, vehicle condition, and ownership transfer for DMV registration, title transfer, and sales tax calculation. Our document drafting service can prepare a state-compliant bill of sale tailored to your vehicle transaction.

A small business is purchasing equipment, inventory, or machinery from another business and requires a written record of the transaction for accounting, tax deduction, and asset tracking purposes. If the purchase involves installment payments, you should also prepare a promissory note online tool to formalize the repayment terms.

You are selling a boat, trailer, or recreational vehicle and need to comply with state requirements for documenting the transfer and releasing yourself from future liability for the watercraft or vehicle.

A family member is gifting a vehicle or valuable personal property, and you need to document the transfer with a stated consideration of zero dollars to establish the new owner's basis for tax purposes and complete the registration process.

You are purchasing high-value personal property such as collectibles, antiques, or livestock at a private sale and need a written record to establish provenance, prove ownership for insurance purposes, and create an audit trail.

Related Contracts & Agreements Documents

Bill of Sale is often used alongside other contracts & agreements documents. Depending on your situation, you may also need:

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Key Sections in a Bill of Sale

Identification of Parties

This section identifies the seller and buyer by full legal name, address, and contact information. Accurate party identification is essential for establishing the chain of ownership and ensuring the document can be used for registration and tax purposes with state agencies.

Description of Property

The property description must be sufficiently detailed to uniquely identify the item being transferred. For vehicles, this includes the year, make, model, color, Vehicle Identification Number (VIN), odometer reading, and license plate number. For other property, serial numbers, dimensions, and distinguishing characteristics should be included.

Purchase Price and Consideration

This clause states the total purchase price or other consideration exchanged for the property. The stated price is used by state tax authorities to calculate applicable sales or use tax. Some bills of sale also document the payment method, such as cash, check, or financing, and any deposit or installment terms.

Warranty or As-Is Disclaimer

The warranty section defines whether the seller makes any guarantees about the property's condition, functionality, or fitness for a particular purpose. Most private-party sales include an as-is disclaimer that explicitly transfers all risk to the buyer and waives any implied warranties under the Uniform Commercial Code.

Liens and Encumbrances

This provision contains the seller's representation that the property is free and clear of all liens, encumbrances, security interests, and claims of third parties. If any liens exist, they must be disclosed and arrangements for their satisfaction documented to ensure the buyer receives clean title.

Signatures and Date of Transfer

Both the seller and buyer must sign and date the bill of sale to create a binding document. Some states require notarization of one or both signatures, particularly for vehicle sales above a certain value. The date of execution establishes the official transfer date for registration, insurance, and tax purposes.

Bill of Sale Legal Requirements

Many states require a bill of sale to be submitted to the DMV along with the title application when transferring vehicle ownership, and some states mandate a specific state-issued form.

Certain states require notarization of the bill of sale for vehicle transactions, particularly when the sale exceeds a specified dollar amount or involves an out-of-state buyer.

The bill of sale must accurately state the purchase price because state and local tax authorities rely on this amount to calculate applicable sales tax, use tax, or excise tax on the transaction.

For vehicle transactions, federal law under the Motor Vehicle Information and Cost Savings Act (49 U.S.C. § 32705) requires the seller to provide an accurate odometer disclosure, and many states require this disclosure to appear on the bill of sale or on a separate federal odometer statement.

Some states require the seller to provide specific disclosures on the bill of sale, such as whether the vehicle has a salvage title, has been declared a total loss, has flood damage, or has had its odometer tampered with.

Common Bill of Sale Mistakes to Avoid

Providing an incomplete or inaccurate vehicle description by omitting the VIN, odometer reading, or other identifying details, which can cause the DMV to reject the title transfer application.

Understating the purchase price to reduce the buyer's sales tax liability, which constitutes tax fraud and can result in penalties, fines, and potential criminal charges for both parties.

Failing to include an as-is disclaimer in a private-party sale, which may allow the buyer to invoke implied warranty protections under the Uniform Commercial Code if the property proves defective.

Not verifying the seller's ownership and checking for outstanding liens or security interests before completing the transaction, leaving the buyer with property subject to a creditor's claim.

Neglecting to retain copies of the signed bill of sale, leaving both parties without proof of the transaction's terms if a dispute arises about ownership, price, or condition of the property.

Frequently Asked Questions About Bill of Sales

What is a bill of sale?
A bill of sale is a written legal document that records the transfer of ownership of personal property from a seller to a buyer. It serves as a receipt and proof of the transaction, documenting key details including the identities of both parties, a detailed description of the property, the purchase price or consideration paid, the date of transfer, and any warranties or as-is disclaimers. While it is most commonly used for vehicle sales, a bill of sale applies to any personal property transfer including boats, equipment, livestock, and valuable personal items. The document protects both parties by creating a contemporaneous written record of the transaction's terms.
Do I need a bill of sale to sell a car?
Whether you legally need a bill of sale to sell a car depends on your state. Many states, including New York, Maryland, Montana, and West Virginia, require a bill of sale as part of the vehicle title transfer process at the DMV. Even in states that do not strictly require one, a bill of sale is strongly recommended because it documents the sale price for tax purposes, records the exact date of transfer to limit the seller's liability, provides proof of ownership for the buyer, and serves as evidence of the transaction terms if any dispute arises. Some states accept the information on the back of the title certificate as a substitute for a separate bill of sale.
Is a bill of sale the same as a title?
No, a bill of sale and a title are fundamentally different documents that serve different legal purposes. A certificate of title is an official government-issued document that establishes legal ownership of a vehicle or vessel and is maintained in the state's records. A bill of sale is a private transaction document created by the parties that records the terms of the sale including the price, date, and condition. The title is required to prove ownership and register the vehicle, while the bill of sale documents how and when the ownership was transferred. Both documents work together in a vehicle transaction - the title conveys ownership and the bill of sale documents the sale terms.
Does a bill of sale need to be notarized?
Notarization requirements vary by state and by the type of property being transferred. States including Louisiana, Montana, Nebraska, Maryland, and West Virginia require notarization of a bill of sale for vehicle transactions. Many other states do not require notarization for standard private-party sales but may require it for transactions above a certain dollar amount or involving specific property types such as boats or firearms. Even when not legally required, notarization adds a layer of authentication that can prevent disputes about the validity of signatures and the date of execution. Check your specific state's requirements before completing the transaction.
What should a bill of sale include?
A detailed bill of sale should include the full legal names and addresses of both the seller and buyer, a detailed description of the property being sold, the total purchase price and method of payment, the date and location of the sale, a statement regarding the condition of the property including any as-is disclaimer, the seller's representation that the property is free of liens and encumbrances, odometer disclosure for vehicles, and the signatures of both parties. For vehicles, include the year, make, model, VIN, color, and license plate number. Including all these elements creates a complete record that satisfies state requirements and protects both parties.
Is a handwritten bill of sale legal?
Yes, a handwritten bill of sale is legally valid in most states as long as it contains all the required information and is signed by both parties. The law generally does not require legal documents to be typed or printed to be enforceable - the critical elements are the content, the parties' intent, and proper execution. However, a handwritten bill of sale may face practical challenges: it may be harder for DMV officials to read, more susceptible to alteration claims, and less professional in appearance if presented in a legal dispute. For vehicle transactions, some states require the use of an official DMV form, which would supersede any handwritten alternative.
Who keeps the original bill of sale?
Both the buyer and seller should retain a signed copy of the bill of sale for their records. Traditionally, the buyer keeps the original because they need it to register the property, prove ownership, and document their purchase price for tax purposes. The seller should keep a copy as proof that the transfer occurred, which is important for limiting future liability - if the buyer causes an accident in a recently sold vehicle, the seller's copy of the bill of sale proves they no longer owned it at the time. For vehicle transactions, the DMV may retain the original or a copy as part of the title transfer file, so both parties should make copies before submission.
Can I write my own bill of sale?
Yes, you can write your own bill of sale without an attorney, and it will be legally valid as long as it contains the essential elements required by your state. These typically include proper identification of both parties, a detailed description of the property, the sale price, the date of transfer, any warranty or as-is disclaimers, and signatures of both parties. However, using a state-compliant template - such as our printable bill of sale form - is recommended to ensure you include all required disclosures and satisfy any formatting requirements. Some states require specific language regarding odometer disclosures, lien status, or emissions compliance that may not be obvious to someone drafting the document from scratch.

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