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How to write a bill of sale, with a free template

Published · Business deals, money and releases

A bill of sale is a signed record that one person sold something to another: what it was, the price, and the date ownership changed. It takes ten minutes to write and settles most arguments before they start.

When you need one

Write one whenever you sell something valuable privately: a car, motorbike, boat, trailer, equipment, furniture or a horse. For vehicles and boats, some registration offices ask to see a bill of sale, or have their own form. Even where nobody asks for it, it protects you both:

  • The buyer can show they own the item and what they paid for it.
  • The seller can show when the item stopped being theirs, which matters when parking tickets, tolls or accident claims arrive later.

What to include

  1. The date of sale, and the full names and addresses of the seller and the buyer.
  2. A description of the item specific enough to identify it: make, model, serial number, colour, and anything included, such as spare keys or accessories.
  3. The price and how it is paid: cash, bank transfer or cheque, in full or as a deposit with the balance due by a date.
  4. Ownership. A statement that the seller owns the item and that nobody else has a claim to it, such as a lender. If there is a loan on it, say so and say how it will be paid off.
  5. Condition. Either "sold as is", meaning the buyer accepts it with any faults, or the specific warranty the seller gives.
  6. Signatures of both people, and a witness or notary if the item or the office that registers it needs one.

Extra details for a car, motorbike or boat

  • Year, make, model and colour.
  • The vehicle identification number (VIN) or hull identification number, copied from the vehicle itself, not only from the paperwork.
  • The odometer reading at the time of sale, and whether it is accurate. In the US, federal law requires the seller to disclose the mileage when ownership of most vehicles changes, often on the title itself.

Does it need a notary?

Usually not. A bill of sale is valid when both people sign it. Some US states and some registration offices do ask for a notarized bill of sale for vehicles or boats, so check the motor vehicle agency's website where the item will be registered before you meet the buyer.

After you sign

  1. Get paid before you hand over the keys. Wait for a bank transfer to clear, or meet at the buyer's bank. Cheques can bounce days later.
  2. Transfer the title or registration. A bill of sale records the sale; for a vehicle, the title or registration document is what changes the legal owner, and it has its own section to sign.
  3. Tell the registration office you sold it. Many have a notice of sale or release of liability form. In California, for example, the seller should report the transfer to the DMV within 5 days.
  4. Cancel or move your insurance, and remove your plates if your state keeps them with the owner rather than the vehicle.
  5. Keep a copy of the signed bill of sale, and give one to the buyer.

Common mistakes

  • Leaving out the VIN or serial number, so the document could describe any similar item.
  • Writing "paid" when only a deposit has been paid.
  • Promising the item is in good condition when you mean it is sold as is.
  • Handing over the item and the title before the payment has cleared.

Free template

The free bill of sale template asks for each detail above. Tick "vehicle" and it adds the year, make, model, VIN and odometer lines; choose full payment or a deposit and balance; and add a witness or notary block if you need one. If the buyer is paying over time, pair it with a promissory note for the balance.

General information, not legal advice. Rules for vehicles and boats differ between states and countries; check with the office that registers the item.

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