A bill of sale is a written record that you and another person have exchanged money for an item, and that the item now belongs to the buyer
A bill of sale documents a transaction. It states who sold something, who bought it, what the item is, how much was paid, and the date. Both parties sign it. The seller uses it to prove they no longer own the item. The buyer uses it to prove they own it now. It is not a legal requirement in most everyday sales — you can sell a used bicycle or kitchen table without one — but it protects both people if questions arise later about who owns the item or what was promised at the time of sale.
Bills of sale matter most when the item is valuable, when ownership needs to be registered with a government body, or when the sale involves a loan. A car sale almost always requires one because the state motor vehicle department needs proof of the transfer before it will issue a new title. A boat, motorcycle, or piece of heavy equipment often does too. A private sale of a used phone, furniture, or tools usually does not, though having one is still a good idea if the price is high.
Key Takeaways
- A bill of sale is a signed document between a buyer and seller that records what was sold, for how much, and on what date.
- For vehicles, boats, and other registered property, a bill of sale is required by your state or local government before you can transfer ownership.
- For personal items like electronics or furniture, a bill of sale is optional but protects both parties if a dispute arises later.
- A bill of sale should include the names and contact information of both parties, a description of the item, the sale price, the date, and signatures from both the buyer and seller.
When a bill of sale is legally required
State law determines whether a bill of sale is mandatory. For motor vehicles, every state requires one before the Department of Motor Vehicles will process a title transfer. The seller must provide it to the buyer, and the buyer must submit it along with an process for a new title. Some states call this form a "bill of sale"; others call it a "notice of transfer" or "assignment of title." Your state's motor vehicle department website lists the exact form and what information it must contain.
Boats, motorcycles, ATVs, and recreational vehicles follow similar rules in most states, though the specific agency varies — sometimes it is the motor vehicle department, sometimes the fish and wildlife agency or the county recorder. Mobile homes and manufactured homes typically require a bill of sale filed with the county or state. Check the agency that handles registration for the type of property you are buying or selling.
For personal property — used phones, computers, furniture, tools, jewelry — no state law requires a bill of sale. However, some private sales do benefit from one. If you are selling something expensive and want proof you no longer own it (to protect yourself if it is stolen or used in a crime), a bill of sale is useful. If you are buying something expensive and want proof of the price you paid (for insurance or warranty purposes), a bill of sale serves that purpose.
What information must be included
A bill of sale should contain the names, addresses, and phone numbers of both the buyer and the seller. It should describe the item in enough detail that there is no confusion about what was sold — for a car, that means the year, make, model, color, and vehicle identification number (VIN); for a used phone, the brand, model, and serial number if available; for furniture, a clear description of what it is.
The bill of sale must state the sale price and the date of the sale. It should note whether the price was paid in full or whether any payment is still owed. If payment is still owed, some bills of sale include terms — for example, "$500 due on delivery, $500 due 30 days later." Both the buyer and seller must sign and date the document. Some states require the signatures to be notarized for certain types of property, particularly vehicles; check your state's requirements before you sign.
For vehicle sales, your state's motor vehicle department provides an official form that includes all required fields. For personal property, you can write a bill of sale yourself or use a template. The key is that both parties agree to what is written and both sign it. Keep a copy for your records.
How a bill of sale protects the seller
A signed bill of sale proves that the seller transferred ownership on a specific date. If the item is later damaged, stolen, or used to commit a crime, the seller has documentation that they no longer owned it at that time. This is especially important for vehicles — if a car is involved in an accident or a crime after it is sold, the seller can show the bill of sale to prove they were not the owner when the incident occurred.
A bill of sale also protects the seller if the buyer later claims the item was defective or does not work. By signing the bill of sale, the buyer acknowledges receipt of the item in its current condition. This does not eliminate the buyer's rights under consumer protection laws or warranty laws, but it does create a clear record of what was agreed to at the time of sale.
How a bill of sale protects the buyer
A signed bill of sale proves that the buyer paid for the item and now owns it. For registered property like a vehicle, the bill of sale is the document the state uses to transfer the title into the buyer's name. Without it, the buyer cannot legally register the vehicle or prove ownership to an insurance company.
For personal property, a bill of sale creates a record of the purchase price and date, which can be useful for insurance claims, warranty registration, or resale. If the seller later claims the item was not actually sold or demands payment again, the bill of sale is proof that the transaction is complete.
How to write a bill of sale for a private sale
Start with a heading: "Bill of Sale." Write the date at the top. Then write the seller's full name, address, and phone number, followed by the buyer's full name, address, and phone number. Use a clear, straightforward format — you can type it or write it by hand.
Write a sentence that states the seller is selling the item to the buyer. Describe the item in detail. For example: "The seller sells to the buyer one used Apple iPhone 14, silver, serial number [number], in working condition." Then write the price: "The buyer pays the seller $600 in full payment for the item." Add the date of sale. At the bottom, leave space for both parties to sign and print their names.
Both the buyer and seller should keep a copy. If your state requires notarization for the type of item being sold, take the signed document to a notary public before the transaction is complete. The notary will verify the identities of both parties and add their seal to the document.
State-specific requirements for vehicles and registered property
Vehicle bills of sale vary by state. Some states provide an official form on the motor vehicle department website; others accept any written bill of sale as long as it includes the required information. Common requirements include the VIN, the odometer reading, the sale price, and the date. Some states require the seller to note whether the title is clear (no liens) or whether there is an outstanding loan on the vehicle.
A few states require the bill of sale to be notarized before the buyer can register the vehicle. Others do not. Check your state's motor vehicle department website for the specific form and instructions. If you are buying a vehicle from a private seller, ask them which form your state requires and whether notarization is needed.
For boats, motorcycles, and other registered property, the agency that handles registration will specify what form to use and what information it must contain. Do not assume the same form works for all types of property — a boat bill of sale may differ from a vehicle bill of sale.
Frequently Asked Questions
Do I need a bill of sale if I am buying something used from a private person?
For vehicles, boats, and other registered property, yes — your state requires it before you can transfer the title. For personal items like furniture or electronics, no law requires it, but having one protects both you and the seller if a dispute arises about ownership or condition.
What if the seller will not sign a bill of sale?
For a registered vehicle or boat, you cannot complete the purchase without one — the state will not transfer the title. For personal property, you can proceed without one, but you lose the protection a signed document provides. Consider whether you trust the seller and whether the item is valuable enough to warrant the risk.
Can I use a bill of sale template I find online?
For personal property, yes — a straightforward template works fine as long as it includes the names of both parties, a description of the item, the price, the date, and space for signatures. For vehicles and registered property, check your state's motor vehicle department first; many states have an official form you must use or that they prefer.
Does a bill of sale need to be notarized?
For personal property, notarization is optional. For vehicles and registered property, it depends on your state. Check your state's motor vehicle department or the agency that handles registration for that type of property. Some states require it; others do not.
What if I lose my copy of the bill of sale?
For registered property, the state keeps a copy once you submit it with your title process. You can request a copy from the motor vehicle department. For personal property, ask the other party for their copy. If neither of you has it, you lose the written proof of the transaction, though you may still have bank records or other evidence of the sale.