How to Write a Bill of Sale: A Step-by-Step Guide

Whether you're selling a used car, a boat, a piece of furniture, or a horse, a bill of sale is the simple document that proves the sale actually happened. This guide walks you through what a bill of sale is, exactly what to put in one, and how to write a solid one in a few minutes — with a free tool that does the formatting for you.

What is a bill of sale?

A bill of sale is a written record that ownership of an item has passed from a seller to a buyer in exchange for payment. Think of it as a receipt with teeth: it doesn't just show that money changed hands, it documents who sold what, to whom, for how much, and on what date and terms.

That record protects both sides. The seller has proof they no longer own the item (which matters if, say, a car gets a parking ticket the week after it's sold). The buyer has proof they're the rightful new owner — often exactly what a state DMV wants to see before transferring a title.

Do you legally need a bill of sale?

It depends on what you're selling and where you live. For most everyday items — furniture, electronics, appliances — a bill of sale isn't legally required, but it's smart to have one so there's no dispute later. For higher-value or titled property, it's often expected or required:

• Vehicles, boats, and trailers: Many states require or strongly recommend a bill of sale as part of the title-transfer and registration process. Requirements vary, so always check your state's DMV.
• Animals and livestock: A bill of sale documents the health disclosures and terms of the sale, which can matter a great deal later.
• Anything expensive: If the item is worth enough that you'd be upset to lose the money, put the sale in writing.

What information goes in a bill of sale?

A complete bill of sale answers a predictable set of questions. Here's the anatomy of a good one:

1. The parties. Full legal names and addresses of both the seller and the buyer.
2. A clear description of the item. The more specific, the better. For a car, that means year, make, model, VIN, and odometer reading. For general goods, include brand, model or serial numbers, and a plain description.
3. The purchase price. The agreed amount, in dollars.
4. The payment method and terms. Cash, cashier's check, bank transfer, and so on — and whether it was paid in full or with a deposit and balance owed.
5. The condition and an "as-is" statement. Most private sales are "as is," meaning the buyer accepts the item in its current condition with no warranty. Noting known defects protects the seller from a later claim.
6. A statement about liens. The seller confirms the item is free of loans or claims (or discloses any that exist).
7. The date of sale and signatures. Both parties sign and date. Printed names underneath make it unambiguous.

How to write a bill of sale, step by step

1. Identify the buyer and seller

Write out both parties' full names and addresses. This establishes exactly who the agreement is between.

2. Describe the item precisely

Vague descriptions cause disputes. Include every identifying detail you can — serial numbers, VINs, hull numbers, or unique markings. If you're selling a vehicle, the VIN and odometer reading are essential.

3. State the price and how it's being paid

Record the agreed price and the payment method. If the buyer is putting down a deposit and paying the rest later, spell out the balance and the due date so there's no confusion.

4. Add the protective clauses

This is where a good template earns its keep. Standard clauses include an "as-is" disclaimer, a warranty of title (the seller confirms they own the item and can sell it), a lien statement, and who bears the risk of loss. You don't need to write these from scratch — a generator fills in tested language automatically.

5. Sign, date, and keep copies

Both parties sign and date the document, and each keeps a copy. That's it — the sale is on the record.

Does a bill of sale need to be notarized?

In most states and for most sales, no. A bill of sale is generally valid once both parties sign it. There are exceptions — for example, Louisiana requires a notarized bill of sale for vehicle transfers, and a few states may ask for notarization or a witness in specific situations. When in doubt, check your state's DMV or add a notary block to be safe. A good template lets you include an optional notary acknowledgment and witness line when you need them. For the full breakdown, see when a bill of sale needs to be notarized.

Common mistakes to avoid

• Being vague about the item. "One car" isn't enough — include the VIN and odometer.
• Leaving out the "as-is" language. Without it, a buyer may later argue the seller promised the item was flawless.
• Forgetting the date. The sale date determines when responsibility (and risk) shifts to the buyer.
• Not keeping a copy. Both parties should walk away with their own signed version.
• Accepting risky payment for a big-ticket item. For high-value sales, insist on verified funds — personal checks and peer-to-peer app payments can bounce or be reversed.

The fastest way to create one

You can absolutely write a bill of sale by hand or in a word processor. But the reason people reach for a template is speed and completeness — a good generator asks the right questions for your specific item, includes the standard legal clauses, and hands you a clean PDF to print and sign.

Frequently asked questions

Related reading: Do You Need a Bill of Sale for a Used Car? →  ·  Bill of Sale vs. Title →  ·  When Does a Bill of Sale Need to Be Notarized? →  ·  What Does a Bill of Sale Look Like? →  ·  Horse Bill of Sale: What to Include →

Ready to put this into practice? Create your free bill of sale now →