Bill of Sale FAQ

What is a Bill of Sale?

A Bill of Sale is a legal document typically drafted by a seller that transfers title and ownership of specific property to a buyer and affirms in writing that a transaction of sale has been conducted and agreed upon.

What types of Bill of Sales are there?

There are two types of Bills of Sale: an Absolute Bill of Sale and the Conditional Bill of Sale.

• Absolute Bill of Sale - is simply a contract of sale of goods. It does not hold or represent any form of security.
• Conditional Bill of Sale - to hold or represent a security. In this case an individual assigns or transfers property to serve as security for the payment of money.

Can a Bill of Sale be used for live animals such as pets?

Yes. Although pets (e.g. cats, dogs, birds) do not have title, pets are considered personal property. Thus, when you purchase or buy the pet you are transferring ownership of the pet from the previous owner (an individual, store, breeder, etc.) to the buyer.

What is the purpose of a Bill of Sale?

A Bill of Sale’s primary purpose is to serve as a legally binding document evidencing the transaction (i.e. the transfer of ownership/sale). In addition, the information on a Bill of Sale can help you track your personal or business assets. This information can be useful in conducting an audit or inventory control of physical property, calculating financial and accounting expenses and/or calculating tax deductions.

What is an “As-Is” Bill of Sale?

An “As-Is” Bill of Sale is a document whereby the seller does not warrant or guarantee the condition of the property being sold. However, even if the Bill of Sale does not state that the property being sold is “As-Is” then it will generally be interpreted that the property is sold without any warranties or guarantees. The “As-Is” statement provides more protection to the seller because the buyer cannot assert that the parties had any prior oral agreements regarding the state or quality of the item being purchased.

What are the requirements for a Bill of Sale?

Requirements for a Bill of Sale differ from state to state; however there are five general elements that must be present for a Bill of Sale to be enforceable:

• Date of the sale transaction.
• Seller’s Information, which includes the seller’s name, address, phone number, etc.
• Buyer’s Information, which includes the buyer’s (purchaser’s) name, address, phone number, etc.
• Sale/Purchase Amount or Value Received. The purchase/sale amount may also be referred to as the consideration amount.
• Description of the Property Being Sold. The description of the property should be specific and detailed. For example, if you are buying a home, this would include the legal description and address of the property being purchased. In buying a motor vehicle, this would the VIN number, DOT number, serial number, etc.

Can a Bill of Sale be handwritten?

Generally a handwritten Bill of Sale will be a valid and enforceable legal document, provided that the handwritten Bill of Sale meets the requirements above. However, there are certain federal and state laws that require a Bill of Sale in certain sale transactions to be completed and signed on a statutory form. In these cases, such forms may require the seller to type the information regarding the sale.

Who signs a Bill of Sale?

A Bill of Sale must be signed by the seller. However, many Bills of Sales require that both parties (Seller and Buyer) sign. If the Bill of Sale is not signed by the seller it will be deemed incomplete and not legally binding.

9) What state laws govern Bill of Sales?

There are different bodies of state laws that govern a Bill of Sale and set forth statutory requirements for a Bill of Sale to be valid and enforceable. Typically the governing body of law depends on the purpose of the Bill of Sale. For example, a state’s real estate commission will have certain regulations that need to be followed when drafting a Bill of Sale regarding real estate or real property. Bills of Sale for motor vehicles not only are subject to state laws, but also to the applicable state’s Department of Motor Vehicle (DMV) requirements.

Where is a Bill of Sale enforceable?

A Bill of Sale is accepted and recognized in all states regardless if the document was drafted and executed in another state.

Does a Bill of Sale have to be recorded?

Generally a Bill of Sale does not need to be recorded or filed with a court or governmental agency (this may vary depending on state law). However, there are certain sale transactions, such as a home purchase, that require proof or evidence that ownership has been transferred from the seller to the buyer or purchaser to be recorded. In these cases, a Bill of Sale may be subject to recording requirements.

Bill of Sale Forms

• Bills of Sale Combo Packages

  Bills of Sale Combo Packages which provide a vast array of forms to fit various situations. These packages contain Bills of Sale for items sold "As Is," vehicles such as autos and motorcycles, as well as pets and animals. Purchasing a combo package will ensure that you have the correct Bill of Sale form at your disposal.

• Automobile AS IS Bill of Sale

  Popular - Auto AS IS Bill of Sale form for use when selling an automobile "AS IS" without any warranties as to its condition. This form sets forth all relevant terms including the price paid for the auto, its make, model and VIN and that it is sold without any liens or encumbrances. This Bill of Sale form also contains an Odometer Disclosure Statement.

• Automobile Bill of Sale

  Popular - Automobile Bill of Sale form for use when selling an auto. This form contains all relevant information about the vehicle (including make, model and VIN), the price paid by the buyer and an Odometer Disclosure Statement.

• Boat, Vessel and Watercraft Bill of Sale

  Popular - Boat, Vessel and Watercraft Bill of Sale for use when selling or buying boats, vessels and other types of watercraft. This form includes a description of the vessel, warranty information and transfer of ownership language.

• General Bill of Sale

  Popular - General Bill of Sale for use when buying or selling any type of personal property. This form sets forth a description of the item, its selling price and if the property is sold with any warranties.

• Mobile Home Bill of Sale

  Popular Mobile Home Bill of Sale form is for use when selling or purchasing a mobile home from an individual. This form contains all relevant information including the mobile home's location, make, model, size and year and any warranties which remain on the mobile home.

• Motorcycle AS IS Bill of Sale

  Popular Motorcycle AS IS Bill of Sale for use when selling a motorcycle with no express or implied warranties. This form sets out a detailed description of the motorcycle, price paid and an Odometer Disclosure Statement.

• Motorcycle Bill of Sale

  Popular Motorcycle Bill of Sale for use when selling or purchasing a motorcycle. This form sets out a detailed description of the motorcycle (including make, model and VIN), price paid and also contains a Odometer Disclosure Statement.

• Vehicle Bill of Sale and Promissory Note

  Popular - Vehicle Bill of Sale with Promissory Note is used when selling a vehicle to a buyer who will make monthly payments under a promissory note. This form includes a detailed description of the vehicle (make, model and VIN), an Odometer Disclosure Statement and the terms of the promissory note.

• Automobile Sale Kit

  Automobile Sale Kit for use when selling an automobile in California or Texas. This kit contains a bill of sale, mileage disclosure statement and release of liability. It also contains detailed instructions on how to transfer ownership of the automobile.

• Bird Bill of Sale

  Bird Bill of Sale for use when selling or purchasing a bird such as a parrot, parakeet or an exotic breed. This form contains the necessary terms including a short description of the bird, the price paid and transfer of ownership language.

• Cat Bill of Sale

  Cat Bill of Sale for use when selling or purchasing a cat. This bill of sale contains a short description of the feline, warranty against illness information, price paid and transfer of ownership language.

• Dog Bill of Sale

  Dog Bill of Sale specifically designed to document the sale of a dog. This form contains a detailed description of the animal, whether registered, information about illness and price paid for the dog. It also contains language regarding transfer of ownership.

• Electronics Bill of Sale

  Electronics Bill of Sale for use when selling any type of electronic device such as an iPad or iPod, laptop, television or radio. This form includes the names of both seller and buyer, total purchase price and detailed information about the device. It also sets forth how ownership will be transferred.

• Exotic Animal Bill of Sale

  Exotic Animal Bill of Sale specifically designed for use when selling an exotic animal such as a snake, monkey or chinchilla. This form includes the provisions to lawfully document the sale including a short description of the animal, how ownership will be transferred and the full purchase price.

• Furniture Bill of Sale

  Furniture Bill of Sale is used when selling an item of furniture. This form sets out a full description of the item (valuable antique, dinette set or bedroom suite), names of the seller and purchaser and the total price paid for the furniture.

• Golf Cart Bill of Sale

  Golf Cart Bill of Sale for use when selling a golf cart. This form contains detailed terms about the sale including a description of the cart, final purchase price and that seller is the lawful owner and has the right to sell the golf cart.

• Horse Bill of Sale

  Horse Bill of Sale form is used when buying or selling a horse or other animal belonging to the equine family. This form sets out a detailed description of the animal (name, breed, date of birth and registration number), Coggins test information and the price paid by the buyer for the animal.

• Jewelry Bill of Sale

  Jewelry Bill of Sale for use when selling jewelry. This form sets out the names of the seller and purchaser, detailed description of the jewelry and its purchase price. Ownership transfer information is also contained in this bill of sale.

• Livestock Bill of Sale

  Livestock Bill of Sale is for use when selling livestock such as cattle, poultry, pigs or goats. This form sets out the specific terms of the sale including a detailed description of the livestock and the purchase price. It also contains language transferring ownership to the buyer.

• Snowmobile Bill of Sale

  Snowmobile Bill of Sale is for use when selling a snowmobile. This document spells out the total purchase price and a vehicle description (including make, model, VIN and if a trailer is included). it also sets forth that ownership of the snowmobile is transferred to the buyer.

• Spanish Forms

  Spanish Bill of Sale forms for use when selling or purchasing specific property. Included are a General Bill of Sale for use in selling any type of item and a Bill of Sale for an automobile being sold "as is." These forms set out the names of the parties, description of the specific item being sold and the total purchase price.