How to Write a Bill of Sale
What a bill of sale is, what to put in it, and how to fill one in so both the buyer and the seller are covered.
A bill of sale is a short written record that something was sold. It shows who sold it, who bought it, what was sold, what it cost, and the date. If there is ever a question later, such as whether the item was paid for or who owns it, the bill of sale is the proof.
When you need one
You do not need a bill of sale for a coffee table at a yard sale, but you will be glad to have one whenever the item is worth real money or has to be registered. Common examples:
- Furniture, appliances, tools, and equipment
- A car, truck, motorcycle, trailer, or RV
- A boat or jet ski
- A horse, a dog, or other animals
- Anything you are selling to someone you do not know well
What to put in it
- The date of the sale.
- The seller and the buyer. Full names and addresses.
- A clear description of the item. For something with a serial number, include it. For a vehicle, include the VIN. A photo can help too.
- The price, and how it was paid. Cash, check, bank transfer, or a payment app.
- A statement that the seller owns the item. This says that the seller has the right to sell it and that nothing is owed on it.
- How the item is sold. "As is" means the buyer takes it the way it is. Or the seller can promise that it works as described.
- Both signatures and the date.
"As is" in plain words
When an item is sold "as is," the buyer agrees to take it in its current condition. If it breaks a week later, the seller is generally not responsible for fixing it. This is the most common way to sell used things. If you are the buyer, look the item over carefully before you agree.
After the sale
- Each person keeps a signed copy.
- If the item has a title or registration, like a vehicle or boat, the seller must also sign that over to the buyer. A bill of sale does not replace a title.
- Many states want the sale reported to the motor vehicle office, and the buyer to register the item within a set time.
A few tips
- Write the price you really paid. A wrong price on a bill of sale can cause trouble with taxes and fees.
- If a gift, say so, and write the price as zero.
- Pay by a method that leaves a record, like a check or bank transfer, when the amount is large.