How to Write a Bill of Sale

When buying a new item, the establishment from which you are purchasing the item will lay out the process, and your signature may be required. On the other hand, when purchasing something used, the seller may lack a defined process. If a disagreement arises, things may become complicated.

It is therefore a good idea to have a bill of sale in order to protect both the buyer and the seller if there are issues later on.

Table of Contents

What is a bill of sale?

A bill of sale is a document that allows one person to transfer ownership of goods to another. It contains general information about the property or object for sale. Bills of sale are not required in every state, but they can help to avoid future misunderstandings between the seller and buyer in a transaction. It is most commonly used for high-value items like vehicles, boats, planes, and farm animals.

A bill of sale is also a helpful document for buyers, as it can serve as a receipt for their purchase.

Is a bill of sale legally binding?

A bill of sale binds both the seller and the buyer to the terms outlined in the document. As a result, it is critical that both parties understand what the document contains.

The seller is responsible for providing accurate information, including the price for which the item is being sold. If the seller misrepresents the item’s price, they may be held liable for any damages resulting from the misrepresentation.

The buyer is also responsible for adhering to the terms of the bill of sale. If the buyer does not follow the terms, they may be held liable for the debt incurred while purchasing the item.

How to write a bill of sale

A bill of sale can be written by anyone as long as certain conditions are met. In order for it to be legally binding, it must contain specific information. This information is important because it will help you understand how much sales tax you may have to pay.

Certain components should be included in your bill of sale. These are some examples:

Transaction date: Your bill of sale should include the date of sale.
A detailed description of the item being sold: It is crucial that you include a detailed description of the item being sold. If you’re selling a car, for example, your bill of sale should include the year, make and model, vehicle identification number, current mileage, and license plate number.
Warranty: In your bill of sale, private party sales are generally considered “as is” or “no warranty” sales. If your agreement includes a warranty, include it in the bill of sale document.
Price of sale: When writing your bill of sale, include the price for which the item is being sold. If your item is a gift or a partial gift, the reduced price can be stated on the bill of sale.
Details about the parties involved: The names, addresses, and signatures of the buyer and seller should be included in your bill of sale document. It should also include a signature above the statement acknowledging that, to the best of their knowledge and belief, both parties have provided true and correct information.
Previous Owners: In the case of a private sale of used property, such as a used car, the bill of sale should name previous owners known to the seller.
The method of payment is: The method of payment should be specified in the bill of sale document (i.e. in installments or in full, cash, check, credit card, or bank deposit)

Tips to ensure your bill of sale is accurate and complete

There are a few things to keep in mind when writing a bill of sale.

First, be sure to include all required information, such as a description of the asset, the date of the sale, and the names and addresses of both parties involved.
Second, make sure that both you and the buyer sign and date the bill of sale.
Third, keep a copy of the signed bill of sale for your records.

By following these simple tips, you can ensure that your bill of sale is accurate and complete and that it serves as a helpful record for both you and the buyer.

How to write a bill of sale for a car

You may be able to write your own bill of sale for a car if your state does not require a specific form.

You will want to include certain components in your bill of sale when writing it. these include:

Seller’s information: full name, address, and phone number
Buyer’s information: full name, address, and phone number
Date of transaction: the date on which you accept the buyer’s money and sign over the title to the car.
The transaction’s cost
The make, model, year, current mileage, VIN, and license plate number of the vehicle
Any warranty information: if no warranty information is provided, the vehicle is assumed to be in “as-is” condition. If any warranties are transferable, make a note of them on the bill of sale form.
Contact information for the seller: full name, address, and phone number
Write an oath: You should write an oath above the signature line stating that the information provided by the seller was provided in good faith and without any attempt to deceive the buyer.
Signatures: The buyer and seller must both sign the document. However, in many states, the seller is only required to sign the document. Signatures should be obtained only after funds have been transferred from the buyer to the seller.
Notarization: If your state requires it, leave space for a notary to verify your signatures. Even if it is not required by your state

How to write a bill of sale for a house

If you are selling your house and want to provide the buyer with a bill of sale, you should include the following information:

Date of sale – The date that the buyer and seller agree to sell and purchase the house.
Buyer’s name and address – The information of the person who is buying the house.
Seller’s name and address – The information of the person who is selling the house.
The price paid – The amount that the buyer is paying the seller for the house.
The amount owed – The total amount the buyer owes the seller after the purchase, including interest and taxes.
Description of property – The description of the property that is being sold, including the address.
Signatures of buyer and seller – The signatures of both the buyer and seller are required at the end of the bill of sale.

How to write a bill of sale for a boat

If you are buying a boat and want to have a bill of sale, you should include the following information:

Date of sale – The date that the buyer and seller agree to sell and purchase the motorcycle.
Buyer’s name and address – The information of the person who is buying the motorcycle.
Seller’s name and address – The information of the person who is selling the motorcycle.
The price paid – The amount that the buyer is paying the seller for the motorcycle.
The amount owed – The total amount the buyer owes the seller after the purchase, including interest and taxes.
Description of property – The description of the property that is being sold, including the type of motorcycle.
Signatures of buyer and seller – The signatures of both the buyer and seller are required at the end of the bill of sale.

How to sign a bill of sale before payment

Before paying for a product, the seller may request that you sign a bill of sale. The seller will most likely have a standard form that you can use in this case. It is still critical that you carefully read the terms of the bill of sale before signing it.

If you have any questions, you can ask the seller. You can also request that the bill of sale terms be incorporated into your purchase agreement. You can also have the buyer sign a bill of sale before payment if you are selling a car to a private party. The buyer may be required to pay a deposit before signing the bill of sale.

Conclusion

If you are buying or selling a used item, it is important to have a bill of sale. This document outlines the terms and conditions of the sale and provides protection in case anything goes wrong. It is important to have a written agreement between the buyer and seller so that both parties are on the same page.

Further, a bill of sale can also help to avoid misunderstandings in the future. Both the buyer and seller should sign and date the bill of sale. Keep a copy for your records.

FAQs

Can a bill of sale be handwritten?

While it is common to present a bill of sale in digital format, this type of contractual agreement can also be created as a handwritten document on paper. The most important thing is to include all relevant details in the bill of sale to protect both parties.

Can a bill of sale be handwritten in Massachusetts?

While the state of Massachusetts provides a form, you can also hand-write your own or use a custom item bill of sale template.

Is a handwritten bill of sale legal in Texas?

There are standard form bills of sale available online and from your local county tax collector’s office, but handwriting your own is perfectly acceptable.