What a bill of sale is
A bill of sale is a written record that ownership of an item passed from a seller to a buyer. It covers personal property such as vehicles, boats, equipment, furniture or livestock. It does not cover real estate.
It protects both sides. The buyer has proof of ownership and the price paid. The seller has proof that the item was sold, and when.
What to include
- The full names and addresses of the seller and the buyer.
- The date of the sale.
- A clear description of the item: make, model, year, color, serial number or VIN, and its condition.
- The price and how it was paid.
- Whether the item is sold as-is or with a warranty.
- A statement that the seller owns the item and that it is free of liens, or a disclosure of any lien.
- Signatures from both sides.
As-is or with a warranty
An as-is sale means the buyer accepts the item in its current condition and the seller makes no promises about it beyond what is written. This is common for private sales. Some states limit as-is sales for certain goods or for sales by businesses, so check your state's rules.
If the seller does give a promise, such as that a machine works, write it down. A clear statement avoids arguments about what was agreed.
Vehicles, boats and trailers
For titled items, a bill of sale is usually not enough. Ownership transfers through the title, which the seller signs over to the buyer. Federal law also requires an odometer disclosure for most vehicle transfers, usually made on the title.
States differ on extra steps, such as notarization, specific transfer forms, sales tax, registration and a notice that the seller has sold the vehicle. Your state motor vehicle agency lists what it requires.
Always check your state's motor vehicle rules for titled property. A bill of sale supports the transfer; it does not replace the title process.
Common mistakes
- Leaving out the VIN or serial number.
- Not disclosing a lien on the item.
- Paying in cash with no receipt or record.
- Assuming a bill of sale transfers a vehicle title.
- Keeping no copy.
Common questions
Does a bill of sale have to be notarized?
Not usually, but some states require notarization for certain items such as vehicles. Check your state's rules for the specific item.
Can I use a bill of sale for a gift?
Yes. Record the transfer with a price of zero or state that it is a gift, so the transfer is documented.
Do I need one for a private car sale?
Many states do not require it when the title is transferred properly, but it is still good practice because it records the price, date and condition.
This guide is general information and not legal advice. Laws vary by state and change over time. For a complex or high-stakes situation, speak with a licensed attorney in your state.