Bill of Sale: What is it and how to write one

A bill of sale is a written record of a sale between two parties: it identifies the buyer and the seller, describes the item, records the price and the date, and sets out the terms both sides agreed to. It is used most often for private sales of cars, motorcycles, boats, trailers, equipment and other personal property.

A bill of sale can be relatively simple, but getting the details right matters. A properly completed document gives both the buyer and the seller a written record of what was sold, when it was sold, for how much, and under what terms.

This guide covers what a bill of sale is, what it is used for, what it should include, how to write one step by step, and what a finished one looks like.

What is a bill of sale?

A bill of sale is a document that records a transaction between a buyer and a seller. It serves as a written record that a particular item or piece of property was sold, identifying the parties involved and the terms of the transaction. Depending on the type of property and the jurisdiction, it can also serve as evidence of the transaction or of ownership.

For example, if you sell a used car privately, a bill of sale can document:

• Who sold the vehicle
• Who purchased it
• The vehicle's year, make, model and VIN
• The date of the sale
• The agreed purchase price
• Any relevant conditions of the sale
• The signatures of the buyer and the seller

A bill of sale is particularly useful for private-party transactions, where there may not be a dealership or other business creating a formal record of what happened.

Requirements vary depending on the state and the type of property involved. Some states have specific requirements or forms for vehicle transactions, while others accept a bill of sale containing particular information. New York, for example, identifies a bill of sale as one form of acceptable proof of ownership for certain privately purchased vehicles, and specifies the information that should appear on it.

What is a bill of sale used for?

A bill of sale can be used to document the transfer of many different types of property. Common examples include the following.

Cars and other vehicles

One of the most common uses is documenting the private sale of a vehicle. A vehicle bill of sale can record the vehicle identification number (VIN), buyer and seller information, sale price, and date of the transaction.

Some states have additional requirements for vehicle sales. California, for example, says a bill of sale identifying the vehicle or vessel can be used in certain ownership-transfer situations.

Boats

A bill of sale can document the sale of a boat and identify information such as the vessel, the buyer, the seller, the sale price and the date of transfer.

Motorcycles and trailers

Private sales of motorcycles, trailers, RVs and similar vehicles may also be documented with a bill of sale.

Personal property

Bills of sale can also be used for other valuable items, including equipment, machinery, furniture, electronics and other personal property.

The exact information you should include depends on what you are selling and where the transaction takes place.

What should a bill of sale include?

There is no universal bill of sale format that applies to every transaction. The requirements can vary by state and by the type of property being sold. A typical bill of sale, however, includes the following information.

1. Buyer information

Include the buyer's full legal name and contact information. Depending on the transaction, this may include:

• Full name
• Address
• Phone number
• Email address

For vehicle transactions, additional identifying information may be required by the relevant state authority.

2. Seller information

The bill of sale should also identify the seller. Include the seller's:

• Full name
• Address
• Phone number
• Email address

Clear information for both parties makes it easier to establish who took part in the transaction.

3. Description of the property

Clearly describe what is being sold. The description should contain enough information to distinguish the item from other similar property. For a vehicle, you might include:

• Year
• Make
• Model
• VIN
• License plate number
• Color

For other property, include identifying information such as a serial number, model number, dimensions or other relevant characteristics. The more specific the description, the less ambiguity there is about what the bill of sale covers.

4. Purchase price

State the agreed purchase price, for example Purchase price: $8,500.

If the property is being given as a gift rather than sold, the document should clearly say so. Some official vehicle forms distinguish between a sale and a gift, and require the relevant value or relationship information.

5. Date of sale

Include the date when the transaction takes place or ownership is transferred. This creates a clear record of when the sale occurred.

6. Payment terms

If the buyer is not paying the entire amount immediately, explain the payment arrangement. The bill of sale could specify:

• Amount paid at signing
• Remaining balance
• Payment due dates
• Accepted payment method
• Any conditions attached to payment

The payment schedule matters most when the transaction is not completed with a single payment.

7. Condition of the property

Describe the condition of the item being sold where it is relevant. A private vehicle sale might specify that the vehicle is being sold as is.

Do not add terms that do not accurately reflect the agreement between the parties. If there are warranties, defects, repairs or other conditions that form part of the agreement, they should be documented clearly.

8. Signatures

The buyer and the seller should sign the bill of sale where it is required or appropriate for the transaction, and the date of signing should be recorded as well.

Whether notarization or witnessing is required depends on the jurisdiction and the transaction. California's DMV, for example, states that its bill of sale does not need to be notarized or witnessed.

How to write a bill of sale

Writing a bill of sale does not have to be complicated. These six steps produce a clear record of the transaction.

Step 1: Identify the buyer and seller

Start by recording the full names and relevant contact information of both parties. Make sure the names match the parties actually taking part in the transaction.

Step 2: Describe the item being sold

Provide a detailed description of the property. For a vehicle, include the VIN and other identifying information. For equipment or other property, include serial numbers, model numbers or other details that uniquely identify the item.

Step 3: Record the purchase price

Clearly state the amount the buyer has agreed to pay. If payment will occur over time, document the payment terms rather than simply listing the total price.

Step 4: Add the date and terms of the sale

Specify the date of the transaction and document any important conditions. This might include the property's condition, warranties, as-is terms, included accessories, or other agreements between the buyer and the seller.

Step 5: Review the document

Before signing, both parties should review the information carefully. Check names, addresses, identification numbers, prices, dates and any additional terms for accuracy.

Step 6: Sign the bill of sale

Once both parties agree that the information is correct, sign the document. Each party should keep a copy of the completed bill of sale for their records.

Bill of sale example

A basic bill of sale might look like this.

BILL OF SALE

Seller
John Smith
123 Main Street
Austin, TX 78701

Buyer
Jane Doe
456 Oak Street
Austin, TX 78702

Property
2019 Toyota Camry
VIN: 1XXXXXXXXXXXXXXX

Purchase price
$18,500

Date of sale
September 17, 2026

Terms
The vehicle is sold in its current condition. The buyer acknowledges the condition of the vehicle at the time of sale.

Seller signature
__________________

Buyer signature
__________________

This is only a basic example. The appropriate information and requirements can differ depending on the property and the jurisdiction.

Is a bill of sale the same as a receipt?

Not exactly. A receipt generally provides evidence that a payment or purchase occurred, while a bill of sale provides a more detailed record of the transaction and of the property being transferred.

A bill of sale can function as a receipt, but it typically contains more information about the item, the parties and the terms of the sale. A simple receipt might say “Received $5,000 for the purchase of a motorcycle.” A bill of sale could additionally identify the motorcycle, the buyer, the seller, the VIN, the date of sale, the condition, the payment terms and the signatures.

Create a bill of sale

A bill of sale is, in essence, a written record of a transaction: who bought the property, who sold it, what was sold, how much it cost, when the transaction occurred, and what terms the parties agreed to.

For a simple transaction, creating one can be straightforward. What matters is providing accurate information and accounting for any requirements that apply to the specific property and jurisdiction.

closeit.fast is being built to make creating documents like these simpler. Instead of starting from a blank page, you will be able to provide the relevant details and generate a completed document. Create a bill of sale with closeit.fast.

Frequently asked questions

What is a bill of sale?

A bill of sale is a written document that records the sale or transfer of property from a seller to a buyer. It generally identifies the parties, describes the property, records the price and date, and documents the relevant terms of the transaction.

What should be included in a bill of sale?

A typical bill of sale includes the buyer's and seller's information, a description of the property, the purchase price, the date of sale, payment terms, applicable conditions, and signatures. Specific requirements vary depending on the transaction and the jurisdiction.

Can I write my own bill of sale?

Yes. A bill of sale can generally be prepared by the buyer or the seller, although some transactions or jurisdictions may require a specific form or particular information.

Does a bill of sale prove ownership?

A bill of sale can provide evidence of a transaction and may serve as proof of ownership in some circumstances, but it does not replace every type of ownership document. Vehicle title and registration requirements, for example, vary by state.

Does a bill of sale need to be notarized?

Not necessarily. Notarization requirements depend on the jurisdiction and the type of transaction. California's DMV, for example, states that its bill of sale does not need to be notarized or witnessed.