Thursday, May 23, 2024

How to Write a Bill of Sale (3 Easy Steps Anyone Can Do)

You can think of a bill of sale as being similar to a receipt. It’s a legal document that gives protection to both parties by proving the sale was completed and that the property and payment changed hands.

For the seller, a bill of sale is proof that the item being transferred was accepted by the buyer in the condition described.

For example, if someone is selling their used car, they may wish to sell it in “as-is” condition. This means they aren’t extending a warranty that everything on the car works perfectly since the vehicle’s used condition could mean there is an unknown underlying problem with a component of the car.

By contrast, if they sell it with a warranty, the bill of sale should spell out what they’re guaranteeing.

For the buyer, the bill of sale is a record of the transaction. This gives them proof of ownership as well as a record of their payment. Depending on which state they live in, they might also need the bill of sale to complete the transfer of ownership. For example, some states require motorists to produce a bill of sale before they can register a vehicle in their name.

Sellers can draft a bill of sale on their own, but it’s often helpful to use a template. While there are no universal formats or rules for what a bill of sale should look like, the document should include the names of the seller and buyer, a description of the item being sold, and the date of the sale.

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