A bill of sale documents the transfer of a title of ownership from a seller to a buyer. Bills of sale are used in various transactions, mainly for larger items such as a car. The document identifies the item being sold, the seller, the buyer and the terms of the transaction. The benefits of using a bill of sale include documentation for tax purposes and protection for both the seller and buyer against future disputes regarding the sale.
Date the bill of sale document.
Include the seller's and owner's name, address and phone number. Indicate which party is the seller and which is the owner.
Provide a detailed description of the item being sold. For example, a bill of sale for a car should include the car model and serial numbers, as well as other distinguishing details. State any pertinent articles not included in the sale, such as a remote control that is not sold with a television.
State that the seller confirms the accuracy of the description of the item's condition and provides no other warranty or guarantee. The buyer, in turn, should acknowledge the item's condition and the lack of additional warranties or guarantees.
Include the sale price of the item. Indicate whether the payment amount was received in full by the seller or whether the buyer has put down a deposit and will pay the balance in installments. In the case of the latter, specify late payment fees, interest rates and the date by which the balance must be paid.
Ask both the buyer and seller, as well as witnesses if applicable, to sign and date the document.
- Type the bill of sale on a computer and print it out for the parties to sign. Save the copy on your computer as a template that you can alter as necessary for other documents. Although not required, having the document signed in the presence of a solicitor or legal executive is recommended.
Tips and Warnings
- Type the bill of sale on a computer and print it out for the parties to sign. Save the copy on your computer as a template that you can alter as necessary for other documents.
- Although not required, having the document signed in the presence of a solicitor or legal executive is recommended.