Bill of Sale Template: What It Is and What to Include
A plain-English bill of sale template: what it does, the fields to include for vehicles, equipment and goods, a filled example, and when notarization applies.
Quick answer: A bill of sale template is a form that records the transfer of ownership of an item from seller to buyer. It should include both parties' names and addresses, the sale date, a detailed description of the item with any serial number or VIN, the price and payment method, condition or as-is terms, and both signatures.
Selling a car, a boat, a piece of machinery or even a horse privately? A bill of sale is the simplest way to prove the deal happened, at what price and on what terms. It protects the buyer, who needs proof of ownership, and the seller, who needs proof they no longer own the item. This guide explains what a bill of sale is, how it differs from a title, invoice and receipt, what to include in your bill of sale template, and where state rules such as notarization come in. It is general information, not legal advice.
What is a bill of sale?
A bill of sale is a written document that transfers, or evidences the transfer of, ownership of personal property from a seller to a buyer. It names the parties, describes the item precisely, states the price and the date, and carries the signatures of the people involved.
It is most often used for:
- Vehicles: cars, motorcycles, trailers, RVs
- Watercraft: boats, jet skis, outboard motors
- Equipment: tractors, tools, machinery, business assets
- Animals: horses, livestock, breeding animals
- Valuable goods: firearms where legal, furniture, electronics, art
- Business assets: inventory, fixtures and equipment sold as part of a business sale (usually alongside a full purchase agreement)
Bill of sale vs title, invoice and receipt
| Document | What it proves | Who issues it |
|---|---|---|
| Certificate of title | Legal ownership of a titled vehicle or vessel | State agency |
| Bill of sale | That a specific item was sold, to whom, for how much and when | Seller, signed by both parties |
| Invoice | That payment is requested for goods or services | Seller |
| Receipt | That payment was received | Seller |
A business that sells goods regularly normally uses invoices and receipts; see what a sales invoice is and how an invoice differs from a receipt. The bill of sale is the document for one-off, titled or high-value transfers where ownership itself needs to be proven.
What to include in a bill of sale template
The parties
- Seller's full legal name, address and phone or email
- Buyer's full legal name, address and phone or email
- If either party is a business, its legal name and the name and title of the person signing
The item
- General goods: description, brand, model, serial number, quantity, distinguishing features
- Vehicles: year, make, model, body style, color, VIN, odometer reading, title number
- Boats: hull identification number, registration number, engine details and serials, trailer VIN if included
- Equipment: make, model, serial number, hours meter reading, included attachments
- Animals: name, breed, age, sex, color, markings, registration or microchip number
The deal
- Sale date and, if different, the date of delivery or possession
- Purchase price, in figures and words
- Payment method and whether the price is paid in full, by deposit or in installments
- Trade-in or gift details, if any
- Condition statement: as-is, or the specific warranty given
- Statement that the seller owns the item and that it is free of liens, or details of any lien
Signatures
- Seller signature, printed name and date
- Buyer signature, printed name and date
- Witness or notary block, where required or wanted
Filled bill of sale example
Here is an illustrative bill of sale for a used compact tractor sold with an installment arrangement. Names and figures are examples only.
| Field | Entry |
|---|---|
| Seller | Daniel Reyes, 14 Mill Lane, Springfield |
| Buyer | Hannah Cole, 902 County Road 6, Springfield |
| Date of sale | 27 October 2026 |
| Item | 2019 compact tractor, model CT-25, serial no. CT25-0047812, 640 hours, with front loader |
| Condition | Sold as is, where is, with no warranty |
| Liens | Seller states the tractor is free of all liens and encumbrances |
The payment section:
| Line | Amount |
|---|---|
| Agreed purchase price | $14,500.00 |
| Deposit paid by bank transfer on 20 October 2026 | $2,500.00 |
| Paid today by cashier's check no. 55190 | $8,000.00 |
| Balance remaining | $4,000.00 |
| Balance terms | 2 payments of $2,000.00 due 27 November and 27 December 2026 |
The arithmetic: $14,500 − $2,500 − $8,000 = $4,000; $4,000 ÷ 2 = $2,000 per installment. When a balance remains, spell out what happens if a payment is missed and whether the buyer takes the item now or after final payment. A separate payment plan agreement can set those terms in detail, and you can issue a payment receipt for each installment as it arrives.
How to fill out a bill of sale, step by step
- Check whether your state has an official form. For vehicles, boats and trailers, look on the state agency's website first. If there is a form, use it.
- Gather the identifying details. Copy the VIN, hull number or serial number from the item itself, then compare it with the title or registration. Note the odometer or hours reading on the day of sale.
- Confirm ownership and liens. The seller should have the title or proof of purchase, and any loan secured on the item should be paid off or disclosed.
- Agree and write the price and terms. Include the payment method, any deposit, any balance and its due dates, and the condition statement.
- Fill in both parties' details exactly as on their IDs. Registration offices compare names, so avoid nicknames.
- Sign and date two copies. If notarization is required or wanted, sign in front of the notary.
- Complete the follow-up steps. Sign over the title, file any release of liability, remove plates where your state requires it, and keep your copy.
Vehicle bills of sale: extra points
Vehicles are the most common use of a bill of sale, and they have the most rules:
- State forms. Many states publish their own bill of sale form for vehicles or vessels. If yours does, use it, because the registration office will recognize it.
- Odometer disclosure. US federal rules require an odometer disclosure on ownership transfers for most vehicles. According to NHTSA's consumer alert on odometer disclosure, since January 1, 2021, vehicles from model year 2011 onward need a disclosure for the first 20 years, while model year 2010 and older vehicles kept the earlier 10-year exemption. The disclosure is usually made on the title or a separate form, but recording the reading on the bill of sale is good practice.
- Title transfer. The bill of sale does not replace signing the title over. Check how your state wants both documents handled.
- Release of liability. Many states let or require sellers to notify the agency of the sale, which helps protect the seller from tickets or tolls after handover.
- Sales or use tax. The buyer may owe tax on the purchase price at registration. A realistic stated price matters, because some states compare it with market value. For background on how sales tax works on business sales, see sales tax on US invoices.
Does a bill of sale need to be notarized?
Most private bills of sale do not need a notary. Some states require notarization of the bill of sale, the title or both for certain vehicle or vessel transfers, and requirements change, so lists you find online often disagree. The safe approach is to check your state motor vehicle or boating agency's website before the sale, or simply notarize anyway for high-value items: it adds proof that the signatures are genuine. If you notarize, both parties must sign in front of the notary, not beforehand.
Can you create a bill of sale with our invoice generator?
Not as a true bill of sale. Our free invoice generator produces invoices: the heading is fixed as "Invoice", and there are no fields for VINs, odometer statements, as-is clauses or a buyer's signature. For the bill of sale, use your state's official form or a word processor template with the fields above. If you are a business selling equipment, though, the invoice generator is the right tool for billing the sale: add the item as a line, set your tax rate, record the deposit in "Amount already paid" so the balance is correct, add your signature image, and give the invoice a unique number from the invoice number generator.
Common bill of sale mistakes
- Vague item description. "Blue truck" can describe thousands of vehicles. Use the VIN or serial number.
- Typos in identifying numbers. A single wrong digit in a VIN can stop registration. Copy it from the vehicle and the title and compare.
- Understating the price. Writing a lower price to reduce tax can be illegal and can cause trouble with registration or insurance.
- Not mentioning liens. A buyer who later discovers a lender's claim on the item has a dispute with you.
- Unclear condition terms. State as-is or the exact warranty; silence invites argument.
- Only one signed copy. Both parties should keep a signed original.
- Ignoring state forms. Where the state has its own vehicle or vessel form, a generic template may not be accepted.
Bill of sale checklist
- Seller and buyer full names, addresses and contact details
- Date of sale and date of possession
- Detailed item description with serial number, VIN or HIN
- Odometer or hours reading where relevant
- Purchase price in figures and words
- Payment method, amount paid and any balance with due dates
- As-is statement or warranty terms
- Ownership and lien statement
- Signatures and printed names of both parties, with dates
- Notary or witness block if required
- Two signed copies, one for each party
Keep your copy with your financial records for as long as the sale could matter for tax or liability; our guide to document retention periods gives typical timeframes. For other templates, browse our design and templates section.
Frequently asked questions
What is a bill of sale?
A bill of sale is a written record that a seller transferred ownership of a specific item to a buyer for an agreed price on a specific date. It identifies the parties, describes the item, states the price and payment, and is signed by the seller and usually the buyer. It is common for private sales of vehicles, boats, trailers, equipment, animals and valuable personal property.
Does a bill of sale need to be notarized?
Usually not, but it depends on the state and the item. Most US states do not require notarization for an ordinary private sale. A few states require a notarized bill of sale or title for certain vehicle transfers, and some agencies ask for one when the title is missing. Check with your state motor vehicle agency or the office that will register the item before signing.
Is a handwritten bill of sale legal?
Generally, yes. A handwritten bill of sale can be valid as long as it is legible, contains the key details and is signed by the parties. Where a state requires its own official form for vehicles or boats, use that form instead or in addition. Typed or printed versions are easier to read and less likely to be questioned by a registration office.
Is a bill of sale the same as a title?
No. For vehicles and many boats, the certificate of title is the official ownership document issued by the state, and ownership is transferred by signing the title over and registering the change. A bill of sale is supporting evidence of the transaction and the price. Many states require both for a private vehicle sale, and some require a bill of sale only in certain situations.
What does selling as is mean on a bill of sale?
An as-is clause says the buyer accepts the item in its current condition and the seller gives no warranty about its quality or future performance. It is common in private sales. As-is wording does not protect a seller who lies about the item or hides a known defect, and consumer rules for business sellers may limit warranty disclaimers, so check local rules if you sell regularly.
Who keeps the original bill of sale?
Ideally both parties keep a signed original. Print two copies, have both sign both, and each keep one. The buyer usually needs it for registration or proof of ownership, and the seller needs it as proof of when the item left their ownership, which matters for liability, parking tickets or tolls incurred after the sale.
What is the difference between a bill of sale and a receipt?
A receipt confirms that money was paid. A bill of sale confirms that ownership of a specific item passed from seller to buyer, usually with identifying details such as a serial number or VIN, the condition, any warranty terms and both signatures. A bill of sale often includes the payment details too, so it can serve as a receipt, but a receipt alone rarely proves ownership transfer.
Can a business use an invoice instead of a bill of sale?
For ordinary sales of goods, a business usually issues an invoice and, once paid, a receipt. A separate bill of sale is mostly used for titled or high-value items, private sales, or when the buyer needs ownership proof for registration, financing or insurance. Dealers selling vehicles typically must use the state's required dealer forms.
Invoice Creator Editorial Team
Guides on invoicing, cash flow and small-business finance from Invoice Creator, operated by Next Software Development Company. Content is reviewed for accuracy against the fields our own invoice generator produces.
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