Free Bill of Sale Templates (PDF)

Find out how to transfer your property using a bill of sale, how to make a professional bill of sale, and what you can use this document for.

The bill of sale is a document that provides all the necessary information about the buyer and seller, the transferred item, the purchase price, and other relevant details.

Additionally, this document provides the seller’s and buyer’s disclosures, protecting their rights and limiting their liabilities. These disclosures are especially common when transferring used items. In that case, the seller will disclose all the flaws and damages of the transferred item, and the buyer will confirm that they are purchasing the item in its current condition.

The bill of sale is often required for registering motor vehicles, vessels, guns, or other items. Even when it’s not required, people often use it:

Other Uses for Bill of Sale

• To provide the information not included in the certificate of title
• As proof of ownership when there is no certificate of title
• To limit the seller's liability after the transfer
• To make a record of the property transfer for the tax purposes

Bill of Sale Forms By State

Different Types of Bill of Sale Forms

Bill of Sale Forms By Types

• Motor vehicle bill of sale. Most states require a bill of sale for motor vehicle registration. The bill of sale will provide all necessary information to the authorities about the new owner of the vehicle, details about the vehicle, purchase price, and more.
• Vessel bill of sale. The bill of sale is also used for vessel registration in some states, especially if there is no title.
• Firearms bill of sale. Firearm registration is not required in many states. However, the seller should use the bill of sale as proof that the firearm is no longer in their possession.
• Trailer bill of sale. In some states, trailers and RVs have to be registered. Therefore, the parties should use the bill of sale as proof of transfer.

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Bill of Sale Key Terms

Important Bill of Sale Terms

• Seller. A seller is a person who transfers the property to another person, called the buyer.
• Buyer. A buyer is a person who pays the purchase price and becomes the new owner of the transferred property.
• Purchase price. A purchase price is a value the buyer owes to the seller for transferring the item. It can be in the form of a money transfer, default on debt, trade-in, and more.
• Trade-in. With a trade-in, the seller and buyer exchange the items from their possession. This kind of transfer is common for the motor vehicle trade, where the buyer will trade their old car in exchange for the new one and will pay a certain amount of money to cover the difference in value.
• As is. This term means that the buyer agrees to buy the item in the seen condition and will not have any future claims regarding the item’s condition.
• Odometer reading. The section in the bill of sale for a car that provides the mileage of the vehicle at the moment of purchase.
• Vehicle identification number (VIN). The unique number that identifies the vehicle that must be included in the bill of sale for a car.

Why Do You Need a Bill of Sale Form?

The bill of sale serves as proof of all the relevant details connected to the item transaction.

Moreover, the bill of sale can include details about the item's condition at the moment of purchase, which protects the seller from any future claims regarding the item's condition. Additionally, the seller will have proof of the moment when the item left their possession and will not have any liabilities connected to the transferred item after that moment.

The bill of sale is also beneficial for the buyer since it can serve as proof of ownership if there is no title to the purchased item. The buyer can then use it to register their item or as proof of purchase price for tax purposes.

How to Buy or Sell a Vehicle

The following steps outline the process of vehicle purchase in most states.

#1. Negotiate the Agreement Terms

Firstly, the buyer and seller should agree on the price of the item, payment terms, methods of payment, and transfer costs.

When it comes to the payment, the buyer and the seller can agree that the buyer pays the purchase price upfront or in installments. If there is a trade-in, the parties must determine the value of the buyer’s vehicle and, subsequently, the amount the buyer has to pay to cover the difference in value.

The bill of sale for a car should also provide details about the parties, the transferred vehicle, and the terms of the transaction. Finally, the bill of sale for a car should include warranty details.

If the vehicle is used and sold without warranty, it must include information about all flaws and damages. That way, the parties will prevent any future disputes about the condition of the vehicle.

#2. Get the Vehicle Identification Number (VIN)

The vehicle identification number, or VIN number, is the vehicle’s unique number that helps the parties identify and individualize it. It usually contains 17 characters and can be found on the vehicle's registration or title.

The VIN number can also be found on the vehicle itself, usually on the windshield, the front of the engine block, or the vehicle’s frame.

Using this number, you can search the records and find the vehicle’s repair history, odometer reading, and ownership history.

#3. Collect Vehicle Documents

The seller must provide the following documents and give them to the buyer at the moment of vehicle transfer:

Vehicle Transfer Requirements

• A photo identification, like a driver’s license
• The vehicle’s title and registration.
• The vehicle’s bill of sale
• The odometer disclosure

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The odometer disclosure can be included in the bill of sale for a car, or it can be a separate document. Moreover, the bill of sale should include the parties’ full names, mailing addresses, zip codes, and contact details.

#4. Finalize the Sale

After determining all the details of the transaction and collecting all the necessary documents, the parties will meet to finalize the transaction.

The buyer will give the funds to the seller, and the seller will sign the title and hand over the keys to the vehicle to the buyer. During the transaction, both parties will sign the bill of sale and officially confirm all the terms of the transaction.

In some states, the parties must sign the bill of sale in front of the notary public. Even if that is not the case, the parties should consider notarizing their bill of sale to confirm the authenticity of the document.

#5. Register the Vehicle

Finally, the new owner of the vehicle will register the vehicle at the local DMV and pay the appropriate fees and sales tax.

When registering the vehicle, the new owner will have to provide the following documents:

Vehicle Registration Requirements

• The signed bill of sale
• The vehicle title
• The odometer disclosure statement (if not included in the bill of sale)
• The proof of car insurance

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DMV Offices by State

DMV Office Location

Is a Bill of Sale Required?