What to include in a bill of sale
Vishwen Labs
A bill of sale is a receipt that records a transfer of ownership: who sold, who bought, what changed hands, for how much, on what date, and in what condition. For most private sales that is all it needs to be. For a vehicle it carries more weight, because the buyer will need it at the motor vehicle department and the seller wants proof of the date they stopped being responsible for the car. What a bill of sale does not do is transfer the title; that is a separate document and a separate process run by the state. General information, not legal advice.
What every bill of sale records
Six lines and a signature block cover most private sales:
- The parties. Full names and addresses of the seller and the buyer.
- The item. Enough detail to identify it and nothing else: make, model, serial number, colour, condition.
- The price. The amount actually paid, and how, since some states use it to assess tax.
- The date. When ownership passed, which is usually when the money and the item changed hands.
- The condition. Almost always as-is, with no warranty, stated plainly so both sides know there is no promise about future faults.
- Signatures. Both parties, dated, with each keeping a copy.
Selling a vehicle
A vehicle bill of sale adds the vehicle identification number, the year, make and model, the odometer reading on the day of sale and the plate if it goes with the car. Federal law requires an odometer disclosure on transfer for most vehicles under a certain age, and it is usually made on the title itself as well as the bill of sale. Some states publish their own bill of sale form, some want it notarised, and all of them run the title transfer through the motor vehicle department on their own paperwork and timetable. Check the state's requirement before the buyer drives away, and file the release of liability if your state has one; it is what stops the tickets following you.
As-is, and what it does not cover
As-is means the buyer takes the item in its current condition and the seller makes no promise about how it will behave tomorrow. It is the normal basis for a private sale, and stating it clearly is worth the line it takes. What it does not do is licence a lie: telling a buyer the engine is fine when you know it is not is misrepresentation, and an as-is clause will not save the seller from it. Some states also give consumers rights against dealers that private sellers do not have, which is a good reason for a private seller to write down exactly what was said about condition.
When you need one at all
Any private sale where the item has a serial number, a registration or enough value to argue about: cars, motorcycles, trailers, boats, machinery, instruments, livestock, a second-hand camera worth a month's rent. The buyer gets proof of ownership and price; the seller gets proof of the date and the as-is basis. For small everyday items nobody bothers, and nobody should. If the sale is being paid off over time rather than in one go, a bill of sale is not enough on its own and a promissory note or payment plan belongs beside it.
Before the money moves
Check the serial number on the document against the one on the item, not against the advertisement. Check the seller's name matches the title or registration; buying from someone who is not the registered owner is where private sales go wrong. Write the price actually paid. Sign two copies, or sign one and send the other party the same PDF. And for a vehicle, look up the state's transfer steps that day, because the deadline for filing usually starts when you sign.
Contract Maker is a drafting tool from Vishwen Labs, not a law firm. The templates are starting points written in plain English, they are not legal advice, and using the app does not create an attorney-client relationship. Every template says so itself: it is a template to get you started, and for anything important you should talk to a qualified lawyer where you live. The pages here explain what documents usually contain; they do not tell you what to sign.
Questions people also ask
Is a bill of sale the same as a title transfer?
No. The bill of sale records the transaction between the two of you; the title is the state's record of ownership and is transferred on the state's own forms. A buyer usually needs both, and the state sets the deadline.
Does a bill of sale need to be notarised?
It depends on the state and the item. Several states require notarisation for vehicle transfers, and some publish their own form. For general goods it is rarely required. Check the rule where the item is registered before signing.
