If you need to create a legally binding sales record without starting from scratch, a bill of sale template is your quickest solution.
A ready-to-use bill of sale ensures you capture essential details, like asset specifications, buyer and seller information, and payment terms, accurately and consistently.
Companies also use invoice management software to create their own bill of sales templates, reduce dispute risk, speed up documentation, and maintain transparency in every transaction.
Whether you are selling equipment, vehicles, or personal property, following this clear bill of sales template gives you the confidence that every deal is properly sealed, compliant, and legal.
What is a bill of sale template?
A bill of sale template is a pre-made legal document that records the sale and transfer of ownership between two parties. It includes buyer and seller details, asset description, sale price, and signatures. Using a bill of sale template ensures accuracy, saves time, and provides legal protection in transactions for vehicles, equipment, or personal property.
The seller writes the bill of sale during the buying process. The document protects both the buyer and the seller should they encounter a conflict during the transaction.
TLDR: Everything you need to know about a bill of sale
- What is a bill of sale? It’s a legal document that records the transfer of ownership of an item, typically personal property, between a seller and a buyer.
- Why is it important? It protects both parties by offering proof of transaction and outlining key terms such as item details, sale price, and buyer/seller information.
- When do you need one? Use it when selling or buying high-value items like vehicles, electronics, equipment, or furniture.
- How to write a bill of sale: Include names, contact details, item description, price, signatures, and the transaction date. Templates can simplify the process.
- Where to use a bill of sale template: In private sales, business equipment transfers, vehicle transactions, and any sale requiring proof and legal clarity.
- What types of bill of sale templates exist?: vehicle, general, as-is, and business asset.
To prevent any discrepancies in future contracts, it is essential to customize your bill of sale based on local laws and the type of transaction for maximum protection.
Some states require a bill of sale, while others don’t. If you live in a state where no bill of sale is provided, but it is required, ensure you include all the necessary information when writing your own.
What to include in a bill of sale? A clear checklist
Creating a complete and compliant bill of sale is essential. Below is a comprehensive checklist of what to include:
| Criteria | Why should you include it? |
| Date of sale | Clearly specify the date the asset ownership was transferred. This helps in recordkeeping and dispute resolution. |
| Full names and addresses of the buyer and seller | Include legal names and complete contact details. This validates the identities of both parties involved. dd the date of the sale to establish when ownership changed |
| Detailed description of the asset | Mention brand, model, serial number (if applicable), condition, VIN number, and any other identifying characteristics |
| Sale price or payment details | State the sale price and payment terms clearly, including any “as-is” clauses or warranties |
| Condition of the item (“as-is” clause if applicable) | Declare whether the item is sold “as-is” or with any guarantees or warranties. |
| Guarantee of ownership and free of liens | A statement that the asset is free from claims, debts, or encumbrances. |
| Any additional terms or conditions | Include warranties, contingencies, return policies, or payment plans if agreed upon. |
| Signatures of both parties | Add signatures from both parties to confirm agreement. |
| Signature and seal of notary (if required) | Consider having the document witnessed or notarized for added legal credibility |
Using a bill of sale is essential to document the transfer of ownership legally. It prevents misunderstandings and proves that the transaction occurred, especially in private sales where no retailer is involved.
How do you write a bill of sale and get a free template?
Writing a clear and complete bill of sale ensures the transaction is legally sound and protects both parties from future misunderstandings.
Whether you’re initiating vehicle transaction, equipment deal, or other asset transfer, including the right details will strengthen the document and make it easier to enforce.
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Follow these steps to create a complete, legally valid bill of sale:
- Include key parties and details: Clearly state the legal names, addresses, and contact information of both buyer and seller, along with the date of sale. This establishes who is involved and when the transaction took place.
- Describe the item or asset: Provide a detailed description, including make, model, year, serial number, VIN (if applicable), and any unique identifiers. This ensures there’s no ambiguity about what’s being sold.
- State the sale price and terms: Specify the purchase amount, payment method, and any conditions, such as “as-is” sale or warranties. Being precise helps avoid disputes later.
- Add signatures of both parties: Ensure both buyer and seller sign and date the document to indicate mutual agreement. Without signatures, the bill of sale may carry less legal weight.
- Consider witness or notary involvement: While optional in many cases, having the bill of sale witnessed or notarized can add legal credibility and provide an extra safeguard in case of disputes.
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Handwritten vs. digital bill of sale: Which one should you use?
Both handwritten and digital bills of sale are legally valid but differ in convenience, formality, and risk.
| Aspect |
Handwritten bill of sale | Digital/editable bill of sale |
| Legality | Valid in most states if all required details are included | Valid and often preferred for formal or high-value transactions |
| Use cases | Informal, in-person sales like garage or yard sales | Formal sales of vehicles, electronics, or business assets |
| Pros | No printer, device, or internet needed; quick to create | Accurate, editable, professional; includes standard fields |
| Cons | Risk of illegibility, missing info, or errors | Requires device and software access |
| Best for | Low-value, casual exchanges | High-value, formal transactions, especially if notarized |
| Recordkeeping | Harder to store or duplicate | Easy to store, share, and duplicate |
Why do I need to notarize my bill of sale?
Notarizing a bill of sale isn’t always required, but it often plays a critical role in safeguarding both parties involved in a transaction.
Whether you’re buying or selling a vehicle, piece of equipment, or any high-value asset, notarization adds legal clarity and authenticity to the process.
- Confirms consent and identity: Notarization verifies that both buyer and seller willingly signed the bill of sale without pressure or misunderstanding. The notary also checks valid identification to ensure all parties are exactly who they claim to be.
- State-mandated in certain cases: Some U.S. states require notarized bills of sale for specific transactions, such as transferring vehicles, boats, or firearms. In these situations, notarization is essential to meet legal requirements and complete the sale.
- Facilitates official processes: Many DMVs, banks, and insurers prefer or require a notarized bill of sale to process title transfers, register ownership, approve loans, or settle insurance claims more smoothly.
- Creates a secure legal record: The notary’s seal makes the document part of an official, witnessed record. This seal also deters tampering, since any edits after notarization would invalidate the document.
- Adds legitimacy across jurisdictions: In cross-state or multi-jurisdiction transactions, notarization provides a recognized layer of authenticity, making it easier to enforce agreements if disputes arise.
While notarization might seem like an extra step, it’s one that brings structure, security, and legal legitimacy to your sale.
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What are common terms in the bill of sale template?
To help you navigate the form with confidence, here are a few key terms often included in a bill of sale:
- Buyer: The buyer is the individual or business acquiring the asset. In a bill of sale, the buyer agrees to the stated terms, usually paying an agreed sum in exchange for ownership of the item. The buyer’s information must be clearly recorded for the sale to be valid.
- Seller: The seller is the person or entity transferring asset ownership to the buyer. This party must ensure that the item being sold is theirs to transfer and that it’s free from undisclosed claims or liens. The seller’s role is to disclose the item’s condition and accept payment as outlined.
- Notary: A notary public is a state-authorized official who verifies the identity of the signing parties and witnesses the signing of legal documents. Notarization isn’t always required, but when included, it significantly enhances the legal enforceability of the bill of sale. It helps prevent fraud and confirms that both parties willingly entered the agreement.
- Gift: When the seller transfers an asset to the buyer without requiring payment or compensation, it is considered a gift. In such cases, the bill of sale should explicitly state this to document the intent and avoid tax or legal complications. It’s especially important for recordkeeping in family or nonprofit asset transfers.
- As-is: This clause signifies that the item is being sold in its current state, with no warranties or guarantees. The buyer acknowledges they accept the condition, flaws and all, and cannot later request compensation or repairs. The “as-is” section is vital for protecting the seller from post-sale disputes.
- Payment: This refers to the monetary amount exchanged between the buyer and seller for the asset. The bill of sale should specify the exact amount, payment method (cash, check, bank transfer), and whether payment has been made in full or in installments. Clear payment details help avoid future misunderstandings.
- Vehicle identification number (VIN): The VIN is a critical reference number required in most states to validate ownership and process a title transfer, especially in vehicle-related bills of sale.
Understanding these terms ensures you’re not just signing a document — you’re protecting your rights in the transaction.
What are the bill of sale requirements by state?
Not all bill of sale documents are treated equally across the United States. Depending on your state, the requirements for what must be included, and whether notarization is mandatory.
Understanding these distinctions is key to creating a valid bill of sale that will withstand scrutiny, especially when transferring ownership of vehicles, boats, firearms, or other regulated property.
To help you stay compliant, here’s a quick reference guide that outlines the basic bill of sale requirements in select U.S. states:
| State | Is BOS required for vehicle sales? | Notarization required? | DMV form available |
| California | Yes | No | Yes |
| Texas | No (but strongly recommended) | No | Yes |
| Florida | Yes | No | Yes |
| Louisiana | Yes | Yes | Yes |
| New York | Yes | No | Yes |
| Montana | Yes | Yes | Yes |
| Illinois | Yes | No | No |
| Georgia | Yes | No | Yes |
| Washington | Yes | No | Yes |
| Nebraska | Yes | Yes | Yes |
If you’re selling or buying across state lines, always follow the stricter state’s requirements to ensure the bill of sale is valid on both ends of the transaction.
Bill of sale template: Frequently asked questions (FAQs)
1. Can I use a handwritten bill of sale?
Yes, a handwritten bill of sale is legally valid in most states, as long as it includes all essential details like buyer/seller information, asset description, and signatures. Just ensure the writing is clear and complete to avoid issues.
2. What voids a bill of sale?
A bill of sale can be voided if it’s missing critical information (like signatures or price), contains false statements, or is altered after signing. Legal enforceability also drops if state-required notarization is skipped.
3. Can you use a printable bill of sale template?
You can use a free printable bill of sale template to document a sale quickly. Look for editable formats (Word, PDF, Canva) that include standard fields like date, payment, asset details, and signatures.
4. What needs to be included in a bill of sale?
A valid bill of sale should include the date of sale, buyer and seller details, item description, price, payment method, and signatures. Some states may also require a notary seal.
5. Can I write my own bill of sale?
Yes, you can draft your own bill of sale—as long as it meets your state’s legal requirements and includes key elements like names, price, and the asset’s condition. Using a template can simplify the process.
6. Does a bill of sale need to be notarized?
Not always. Some states and high-value asset types require notarization, but even where it’s optional, it adds legal credibility and protects both parties from future disputes..
7. Who should keep the bill of sale copy?
Both the buyer and seller should retain a copy of the bill of sale for their records. It serves as proof of the transaction and can help with registration, taxes, or future claims.
8. What is the difference between a bill of sale and a title?
A title proves legal ownership of an asset, while a bill of sale documents the transaction that transferred that ownership. Both are important, especially for registering vehicles or equipment.
9. How do I prevent disputes after a sale?
To avoid conflicts, ensure the bill of sale clearly states all terms, includes an “as-is” clause if applicable, and is signed by both parties. Notarizing the document adds an extra layer of protection.
Keep a legitimate record, and validate proof of attorney
Make sure your transaction leaves no room for doubt. A complete bill of sale gives you proof of transfer, protects against fraud, and strengthens legal backing, especially with notarization in place
Using these bills or invoices can help you steer clear of any fraudulent or shadow customer transactions that can result in potential legal obligations. Investing in building a proper bill of sales under the Sales of Goods Law and common contract law helps you rightfully sell or transfer property ownership.
Are you new to legal and compliance policies in customer transactions? Check out free legal transaction management software to manage quotes and ensure compliance for your customers
This article was written in 2019. It has been updated with new information.
