General Bill of Sale Form

What are the legal merits of a Bill of Sale? Is it the same thing as a regular receipt handed to you at Target, or a full-fledged legal contract on its own? 

Get into the nuts and bolts of a bill of sale, how to write one from scratch (or better yet), how to customize premade ones from WordLayout – your go-to online shop for polished and professional business documents!

As a formal document willingly signed by two private parties, often in the presence of a witness, the Bill of Sale carries immense legal significance, both during and after a sale. 

Sales, Gifts & Trades

Keep in mind that, despite their name, bills of sale aren’t limited to commercial or sale-based transactions only.

Even if you want to gift a boat to your grandchild for their birthday or trade your limo for a friend’s Ferrari, all you need is a bill of sale to formally and legally process any change in title & ownership. Across our templates, we offer a separate version to help you process gift or trade-type transactions. 

Now, regardless of whether it’s a commercial transaction or a personal gift, a bill of sale proves that ownership rights were, indeed, transferred on a particular date and location. Note that in most regular commercial sales, a bill of sale, at least legally, only requires the signature of the seller.

But just to be on the safe side, it’s good to have both parties sign the document. A buyer’s signature shows that they agree to the terms & conditions of the sale and that they have received or inspected the item. Depending on where you live, you may also need to notarize the document. This adds an extra layer of legal security, protecting the financial interests of both parties.

If your sale includes a trade-in or a gift instead of monetary payments, use this alternate version of the general bill of sale form.

Use Case

Bills of Sale are most commonly used during private sales involving high-value items, such as cars, equipment, machinery, livestock, firearms, furniture, business assets or any other valuable item like jewelry or collectibles!

The use of this document is particularly common when selling or buying used or second-hand goods. In most private sales using a bill of Sale, the seller offers no warranty on the item being sold. In legal speak, this is called an ‘As Is Sale Agreement’ because the item is sold as is, i.e., in its current condition, and the seller makes no promises to fix or repair the item after the sale.

That said, if active warranties exist on the item being sold or transferred, the seller must disclose this information to the buyer and securely attach any relevant warranty paperwork to the bill of sale. Scroll down for a generalised breakdown of different types of supporting materials attached to a bill of sale in the U.S..

What To Include in a Bill of Sale

But before going into the specifics, let’s cover some contract basics:

When was the bill signed? 

All terms stipulated in the agreement shall become effective as of this date.

Where was the bill of sale signed, filed or notarized? 

This ensures that the correct state or local laws are applied in case of a legal dispute later on.

Now, use the standardized sections in our template to do the following:

• Enter full legal names of the seller & buyer, and their updated contact details such as postal addresses, verified phone numbers & active email IDs
• Carefully note the paid purchase price agreed upon by the parties, and specify the preferred method of transferring the amount, say, cash, check, e-transfer, or other
• Clearly describe the nature, properties & specifications of the item being sold, like VINs in case of vehicles, or a unique serial number assigned to a machine by its manufacturer

• Add a statement confirming if any legal warranties are being provided by the seller, and if so, for how long the warranty shall remain active, and which aspects, elements, or parts  of the item are covered by it
• Add a statement clarifying if government taxes (such as sales or use tax) are included in the purchase price, sometimes also called the seller price
• Add an inspection clause to acknowledge the buyer’s right to a pre-sale inspection, and if and when such an inspection was carried out
• Dated signatures of seller, buyer, and witnesses (if any)

Practical Reasons Why You Need a Bill of Sale

A Bill of Sale serves multiple purposes. As a permanent legal record of the sale, it protects both parties from going back on their word and violating the terms agreed upon at the time of the sale. 

Here are some practical reasons why you might need a copy of the bill of sale after a sale or other legal transfer of ownership has occurred.

• Tax Reasons: A Bill of Sale ensures proper reporting, prevents over-taxation, and protects you during audits. During tax seasons, both parties will need the bill of sale, so don’t forget to keep a copy of the Bill of Sale with your tax records!

• Official Registration Procedures: A bill of sale is a documentary requirement for official and voluntary registration processes, such as registering your new car with the local DMV or registering your pet dog with a breeding club.

• Protection from Fraud: By showing that the sale or transfer was legal, a bill of sale protects you from fraudulent sales. For example, if a buyer is pulled over driving a used car and the seller later claims it was stolen, the buyer can show the signed bill of sale as proof of legal purchase.

• Compliance with Laws: Ensures compliance with federal, state, and local laws, such as public safety and consumer laws.

Common Legal Pitfalls to Avoid for Both Buyers & Sellers

• Selling without a title
• Not disclosing lien or salvage history
• Not reporting the sale to the relevant government body, if required
• Using fake or forged documents, such as fake inspection reports or false certificates of title
• Not disclosing certain information the buyer is entitled to know, such as true odometer readings in case of vehicles.

Attaching the Right Documents to a Bill of Sale

It is hardly ever the case that a bill of sale document will exist or stand on its own.  For a secure & successful transaction, you need to attach the right supporting documents to your bill of sale. 

Documents such as letters, forms, certificates, manuals and other documentary evidence are added to a bill of sale to help tally key information. Doing this protects both parties from legal issues down the line. 

Use our pre-formatted list to list and number each supporting doc while securely attaching them to the bill of sale document.

Here’s a list of supporting documents commonly attached to a bill of sale…

• Certificate of Title
• Previous Bill of Sale (if any)
• Copy of Buyer’s Photo ID
• Copy of Seller’s Photo ID
• Lien release letter
• Inspection reports or certificates
• Proof of insurance
• Proof of payment
• Warranty document
• Recent photographs of the item being sold
• Notarization form (if required)
• Maintenance records
• Operating manual
• Tax records
• Power of Attorney (if someone else is signing on behalf of a party)

8 Useful Tips for Buyers & Sellers

• If there are active warranties on the item, attach relevant warranty paperwork to ensure the new owner can benefit from legal warranties in case of performance & quality issues later on.
• If the item is insured, attach a copy of the insurance policy or binder to the bill.
• Attach proof of payment as a supporting doc, such as a receipt, check copy, or bank transfer record.
• Carefully include any official tracking numbers like passport, license, serial, or registration numbers mentioned in the bill of sale.
• Make sure you are adding the correct & updated contact details for both parties, such as current residential or business addresses, verified telephone numbers, and active Email IDs.
• Name, label, and reference each supporting document to ensure smooth exchange of information between the seller, buyer, as well as third parties such as insurers or government agencies!
• If you’re using this Bill of Sale outside the U.S., insert the appropriate currency symbol using an editable version of the bill of sale file.
• Even in states where notarization is not required by law, you are still advised to notarize your Bill of Sale, as this makes the document harder to dispute in a court of law.

Why Choose this Template

As a ‘General’ Bill of Sale, you can use this pre-ready document to process the sale or transfer of anything of value to you and the buyer. In our document suite, we cover the following items, creating uniquely tailored bills to process the sale or other types of change in ownership:

• Vehicles
• RVs and mobile homes
• Equipment & machinery
• Electronics
• Firearms
• Livestock
• Pet animals
• Business assets

Tailor these templates in a way best suited to the legal, technical, and transactional needs of each unique sale!

You can choose from different formats like PDF, Google Docs, or any cloud-based tool, and easily customize the font style, size, color, and formatting to your liking.

If you prefer a hard copy, simply print one out and fill it in by hand.

Wrap Up

Whether it’s a private transaction, a dealership sale, or any other type of legal ownership transfer, you need a valid bill of sale to formalise the terms & conditions agreed to by both parties. Without a permanent written record of the sale transaction, the parties are more likely to run into legal troubles or costly surprises down the road. 

To ensure quick & easy sales, download our free General Bill of Sale template NOW, and ensure legal transparency & security for all parties involved!