Bill of Sale: What it Is and How to Write One
Written by Law on Call Staff | Reviewed by Nathan Askins | Last Updated July 30, 2025
Selling or buying a car, boat, or other high-value item? Without a proper bill of sale, you’re leaving yourself open to confusion or disputes over ownership. Many people assume a handshake or a receipt is enough until it isn’t.
Our step-by-step guide makes it simple to create a legally sound bill of sale tailored to your needs, whether you’re transferring ownership or protecting your rights.
Main Takeaways
- A bill of sale protects the buyer and seller by putting key details of the deal in writing. It shows what was sold, who was involved, how much was paid, and any agreed upon terms.
- Leaving out information or getting something wrong can delay registration, stall the ownership transfer, or limit your legal protection.
- Taking the time to create a clear, complete bill of sale helps avoid headaches and keeps the transaction on solid ground.
What Is a Bill of Sale?
A bill of sale is a legal document that proves ownership of an item has been officially transferred. Think of it like an extremely detailed receipt. It lists what sold, the seller, the buyer, and the price. It can also include warranties made by the seller, conditions attached to the sale, payment method, or item condition.
You’ll most often use a bill of sale for big-ticket items like cars, boats, RVs, motorcycles, or expensive gadgets. Some states require one for things like vehicle registration or livestock sales. Whether or not it’s required, having a bill of sale protects all parties by documenting the sale clearly, helping to prevent future disputes.
Different Kinds of Bills of Sale
Bills of sale can be customized to fit the terms of a specific transaction. Understanding the type you need helps ensure both parties are protected and in agreement.
- Absolute bill of sale: The most common type. Ownership transfers cleanly without any strings attached: no remaining payments, conditions, or seller obligations. The item is sold “as is,” and the seller is no longer involved.
- Conditional bill of sale: Ownership is only finalized once specific terms are met, like completing a payment plan or fulfilling agreed-upon repairs. Until then, the buyer may not have full rights to the item, and the seller could repossess the property.
- Bill of sale with warranty: The seller guarantees they legally own the item and it works as described. Common for high-value items like real estate or collectibles, they offer added protection for the buyer.
- Quitclaim bill of sale: A quitclaim is used when the seller doesn’t have formal proof of ownership or when the seller isn’t making any guarantees about the validity or extent of that proof. It transfers whatever rights or claims the seller has, along with any existing liabilities, to the buyer.
Understand what you’re signing before you sign.
How to Write a Bill of Sale
To create a bill of sale, at a minimum you’ll need to know what’s being sold, who’s involved, and the sale date. But it usually takes a bit more to ensure the document is legally valid and protects both parties.
What should you include in a standard bill of sale?
You’ll likely want to include these core elements:
- Seller’s and buyer’s full legal names and contact information
- Description of the item being sold (make, model, serial number if applicable)
- Purchase price (in both numerical and written form)
- Date and location of the sale
- Statement transferring ownership from seller to buyer
- Payment terms (if it’s been paid in full or has outstanding payments)
- Payment method (cash, check, or bank transfer, etc.)
- Signatures of both parties
In addition to the essentials, you may want to include tax information, warranties, or even a guarantee that the item is free of liens. If you’re selling something high-value or regulated (like a vehicle, livestock, or equipment), the added detail can make a big difference.
Step-by-Step Instructions
If starting a bill of sale from scratch sounds intimidating, don’t worry. Many of these documents aren’t longer than a page. Below, we’ve outlined the key steps involved so that you’re ready to draft a clear, complete, and legally sound version for yourself.
1. Collect the necessary information
Start by gathering the full legal names and contact info for both buyer and seller, plus a detailed description of the item being sold. Have any serial or VIN numbers at hand.
2. Decide on the type of bill of sale
You’ll likely use an absolute bill of sale, but you may need a conditional or specialized version depending on the item or payment structure. You can get a clear idea of the differences between different kinds of bills of sale above.
3. Check your state’s requirements
Some states require specific formats, disclosures, or notarization, especially for cars, boats, or livestock. You can do an internet search for “[item], bill of sale, [your state]” and verify the info comes from a government source.
4. Draft the bill of sale
Give it a clear title (“Bill of Sale”) and include all relevant details: item description (including model, serial number, or unique features), sale price (written in numbers and words), and payment terms. Be as accurate and complete as possible.
5. Add any specific terms or conditions
If you’re selling the item as-is, say so. If there are warranties, guarantees, or disclosures (like existing damage or liens), include them here, too.
6. Review and revise
Look over the entire document for accuracy and make sure everyone is in full agreement. If the sale is complex or high-value, consider consulting legal resources—or reach out to us for help.
7. Sign and date the document
Both buyer and seller must sign and date the bill to make it official. A witness or notary may be required in some states to validate the sale. Don’t forget that if notarization is needed, you’ll need to sign in front of the notary.
8. Make and store copies
Once signed, you have a legally binding bill of sale. Make sure everyone has their own copy of the document, and store yours in a secure location. Should the new owner need to register the item or prove ownership, or the seller need to prove they no longer own it, everyone is covered.
How to Write a Bill of Sale for a Car
If you’re selling a car privately, keep a few extra details in mind when drafting your bill of sale.
Before you get started, check with your local DMV to review your state’s requirements. For example, Arizona and Washington have car-specific bill of sale templates, and Indiana requests that you complete a Physical Inspection of a Vehicle or Watercraft alongside any bill of sale application.
What should you include in a car’s bill of sale?
Besides the standard bill of sale requirements, you should add the following information for a car transaction:
- Vehicle Identification Number (VIN)
- Odometer reading at the time of sale
- Make, model, year, color, and body type
- Any warranties or an as-is statement
- Payment terms, including a promissory note if the buyer is paying in installments
Remember that some states require notarization or additional paperwork when registering, and many have deadlines (often within 5 to 30 days) for title transfer. A bill of sale doesn’t replace the title, so both parties may need to visit the DMV. Also, be aware that some states will require you to sign the back of the title.
Can you register a car without a title?
Whether or not you can register a car without a title depends on your state. In some cases, a bill of sale can help start the registration process, but most states still require a title to complete the transfer.
If the title is missing, you may be asked to submit a notarized bill of sale, a VIN inspection, or apply for a bonded title. If you’re the buyer, ask the seller why the title isn’t available: you can ask whether it’s lost or if there’s a loan or lien involved. Your local DMV can tell you exactly what documents are needed to move forward.
Frequently Asked Questions
Not exactly, but they’re related. A receipt proves payment was made, while a bill of sale documents the transfer of ownership. A bill of sale usually contains more details and signatures from both parties.
Usually, the seller drafts the bill of sale and provides it to the buyer for review and signature. After it’s signed, the buyer keeps the original and the seller keeps a copy for their records.
Both parties should keep a copy. Typically, the buyer holds the original, while the seller keeps a duplicate. It’s an important record that protects both sides in case any issues come up later.
Yes, you can. A handwritten bill of sale is legally valid as long as it includes all the necessary information. That said, using a digital version is usually faster, neater, and easier to duplicate for both parties.
Not necessarily. For standard sales, especially between individuals, a lawyer isn’t necessary. But if the transaction is complex or involves a lot of money, it’s wise to get legal advice or have someone review the document before signing.
A contract of sale often includes more detailed terms and conditions in anticipation of future contingencies. A bill of sale is usually shorter and more direct.