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What is a bill of sale and how to write one?
Learn how to write a bill of sale, why you need one, and how you can create a template to use for all future transactions.
What is a bill of sale?
A bill of sale is a legal document that proves a transfer of ownership from a seller to a buyer. Most often used for motor vehicles even though it differs from a title watercraft, aircraft, or other items of significant value, a bill of sale records the transfer of any piece of property. It should include a description of the sold item, the date and location of the transaction, and the amount paid from buyer to seller, as well as the names, street addresses, and signatures of the buyer and seller. A completed bill of sale gives the buyer proof that they are the sole owner of the property, and it frees the seller from liability after the transaction.
How to write a bill of sale
A bill of sale can range from very simple to highly detailed, depending on the nature of the transaction. For instance, a standard retail purchase receipt qualifies as a bill of sale, as it outlines the specific goods sold to the buyer and the agreed-upon price paid for each item.
For transactions involving high-value assets, such as a vehicle, it is crucial to ensure the bill of sale is accurately completed and secured at the time of the sale.
1. Include Seller's name and address - this is the party that releases the asset.
2. Include Buyer's name and address - this is the party that takes possession of the asset.
3. Mark the date of the sale - the date that the ownership of the asset has occurred.
4. Describe the item - include a detailed item description. If you are writing a bill of sale for a car, then make sure to include the vehicle identification number (VIN), serial number, odometer reading, body type, or other identifying information.
5. Include a guarantee that the item is free from other claims of ownership (and, in the case of animals, that they have received necessary vaccinations and immunizations).
6. State the price - this is the sale price of the item. Some bills of sale include applicable taxes here.
7. Add signatures - every bill of sale should include the buyer’s signature, the seller's signature, and the notary’s signature or stamp (if required). In-person signatures are always valid, but if you're looking for an online process, here's how to sign a PDF electronically and get all signatures faster.
4 types of bills of sale.
Bills of sale come in various types, each tailored to specific transactions. A general bill of sale is used for everyday items, while a vehicle bill of sale documents the transfer of ownership for automobiles. Specialized bills of sale, such as those for boats or livestock, include unique identifiers relevant to the asset. In contrast, absolute bills of sale confirm outright ownership transfer, while conditional bills of sale are tied to terms like loan repayment or performance of an obligation.
1. Absolute
An absolute bill of sale describes a complete property transfer with no restrictions or payments following the sale. This type of document is logical if a property is being sold “as is.” The seller has no responsibility once the sale is complete.
2. Conditional
Use a conditional bill of sale when you’re transferring property as security for a loan or if the buyer and seller must meet specific criteria to complete the sale. In the case of a loan, the transfer is dependent, or conditional, upon the debtor’s repaying the loan.
3. Quitclaim
If the seller doesn’t have a title or other documentation proving ownership, they might use a quitclaim bill of sale. This document makes no guarantees about the seller’s claim to the property but transfers whatever claim the seller has to the new owner. If there’s a lien on the property, this will pass from seller to buyer.
4. Bill of sale with warranty
This is a standard bill of sale but with additional protection for the buyer against any future claims to the property. The seller guarantees that they own the property and have the right to sell it.
Bill of sale FAQs
1. How do I create an electronic bill of sale?
Once you’ve checked the necessary legal obligations in your state, you can put together a quick bill of sale with Adobe Acrobat. It takes just a few minutes to create a form and add fields for signatures, the date, signer name or initials, email address, and more. Then you can send the form out via email for the other party’s signature. If you need to make changes after sending, you can. Plus, you can make sure you’re notified as soon as the other party has completed the agreement — which they can do on any device.
If you already have a signed paper bill of sale, you can digitize it using Adobe Scan on your mobile device. Simply take a photo of the document and Adobe Scan will convert it into a PDF. Then you can upload the electronic file to Acrobat, for safe record keeping.
2. Who keeps the bill of sale?
Both the buyer and seller should keep the bill of sale for their records. The document protects both parties should any disagreements arise in the future. Usually, the buyer retains the original, while the seller keeps a copy.
3. What is an "as is" bill of sale?
As is bill of sale is another name for an absolute bill of sale. It describes a complete property transfer with no restrictions or following payments.
4. What is the point of a bill of sale?
A bill of sale is a hybrid between a contract and a title or ownership transfer. It's a simpler way to conduct transactions than writing up a contract, while still protecting both parties. It has specific inclusions depending on the type of asset, so a vehicle bill of sale will look different from a real estate bill of sale.
Acrobat online tools
Fill and sign a bill of sale PDF for free online.