The most common example of this is the sale of vehicles, motorcycles, and boats.
Some transactions are regulated by state law, which may require a bill of sale. Here are three easy steps for making your own. For items of lesser value, you probably don’t need one.Ī bill of sale is a straightforward document that anyone can handle. In short, it’s a good idea to have a bill of sale any time you’re selling a vehicle or something of significant value. However, you might want to draft one if you’re selling something like a TV or a valuable antique.
If you’re selling something of minimal value, such as items at a garage sale, you probably don’t need to bother with a bill of sale. If you’re selling a vehicle, you should check your state’s laws as most states require a bill of sale. While there are no universal formats or rules for what a bill of sale should look like, the document should include the names of the seller and buyer, a description of the item being sold, and the date of the sale.Įach state has its own rules for bills of sale and when they’re required. Sellers can draft a bill of sale on their own, but it’s often helpful to use a template. For example, some states require motorists to produce a bill of sale before they can register a vehicle in their name. Depending on which state they live in, they might also need the bill of sale to complete the transfer of ownership. This gives them proof of ownership as well as a record of their payment. This means they aren’t extending a warranty that everything on the car works perfectly since the vehicle’s used condition could mean there is an unknown underlying problem with a component of the car.īy contrast, if they sell it with a warranty, the bill of sale should spell out what they’re guaranteeing.įor the buyer, the bill of sale is a record of the transaction. It’s a legal document that gives protection to both parties by proving the sale was completed and that property and payment changed hands.įor the seller, a bill of sale is proof that the item being transferred was accepted by the buyer in the condition described.įor example, if someone is selling their used car, they may wish to sell it in “as-is” condition. You can think of a bill of sale as being similar to a receipt. The point of a bill of sale is to document that the sale happened and to afford protection to both sides in the event of a future dispute. Generally, the seller writes up the bill of sale which should spell out all the details of the exchange. However, you can also issue a bill of sale when you sell personal property like clothes, furniture, or even a puppy. You can use a bill of sale to document a variety of purchases, with most people using them for cars, motorcycles, or boats.
In this post we’ll show you how to write a bill of sale. Basically, a bill of sale confirms that ownership has changed.
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