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Bill of Sale Forms

Have you ever purchased a vehicle? Which document do you think is the most important for you? A bill of sale, isn’t it? Bills of sale have been used over the centuries by people who wish to buy goods such as cars, boats and horses to name a few. A bill of sale form is most commonly used for vehicles. A bill of sale template is helpful in stating that an item was sold by an individual (seller) on a specific place and on a specific date in exchange for an amount of money or valuable property.


A bill of sale is a very important legal document because it transfers the title of ownership and is an evidence for the transaction. If you want to know more about the ins and outs of a bill of sale, then here is all you need to know about a bill of sale template.

What Exactly is a Bill of Sale?

According to Investopedia, a bill of sale is a legal document which determines sale or transfer of goods and property in writing from one individual or party to another. Also, a bill of sale template serves as a legal proof highlighting that a seller has transferred all the rights to the assets written in the bill of sale to the buyer and full consideration has been exchanged in a transaction.

Furthermore, a bill of sale template is most often for vehicles. However,  they are also for boats, trucks, motor bikes and guns. Though, always remember that you cannot use a bill of sale form for real estate. The name of bill of sale varies with respect to the objects being transacted such as a boat bill of sale, gun bill of sale and so on.

In addition to this, an auto bill of sale can be quite complicated or simple depending upon the type of transaction. Even a single small receipt can be considered as a bill of sale determining the specific goods sold to the buyer at a specific price. When making a car bill of sale, you need to ensure you put everything in the auto bill of sale.

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What is the Difference Between a Bill of Sale and Sales Contract?

People often get confused between a bill of sale and a sales contract. It usually happens because there is not much difference between the two of them. However, both still differ with respect to the purpose and approaches. Let’s see the difference between the both of them.

Bill of Sale

It is a legal document highlighting the transfer of goods to the buyer. The bill of sale form is used during the exchange of goods to transfer the right of ownership from the seller to the buyer. Also, it focuses more on determining the exact goods that the buyer is receiving at the moment, ensuring that the seller holds the rights to transfer the title to the buyer. By having this right, a seller can also give guarantees and warranties about the goods and their performance. Also, they have all the right to disclaim those warranties.

Sales Contract

On the contrary, a sales contract is an agreement between a buyer and a seller regarding the future sale of goods unlike the bill of sale. In addition to this, the goods are immediately exchanged after the parties sign the sales contract while the most important element that differentiates a sales contract with a bill of sale is that it is used prior to the goods getting exchanged. For this reason, the terms and conditions of the contract determine that the seller has agreed upon selling their goods while the buyer has agreed upon the purchase of the goods.

Now that you know about the definitions, you would have understood that a sample bill of sale and sales contract differ in timings and approaches only while the purpose and terms and conditions are the same.

Features of a Vehicle Bill of Sale Template

Since transactions between individuals began, there has always been a requirement for a document determining the ownership of the property exchanged or transacted among individuals. This is why a bill of sale was created to confirm the transfer of ownership for the properties. Covering all the specific information like item sold to the buyer, seller’s information, location and date of the transaction and the amount paid by the buyer for the property, everything is covered under the bill of sale form.

Check out the features covered in a bill of sale.

Proof of Transfer of Ownership to the Buyer

One of the most important aspects covered by a bill of sale template is the proof of transfer of ownership to the buyer. This form of document is mostly used for cars and other vehicles, making it a car bill of sale, auto bill of sale or vehicle bill of sale. However, it is also often used even for the smallest of goods providing a proof of transfer of ownership of the property. Proving the transfer of ownership, a bill of sale forms a legal contract between a buyer and a seller. This document can always be put forward in case of claims as it is recognized in the court of law.

Broad Customization for Situations

A sample bill of sale can be customized according to the requirement of both of the parties, either a buyer or a seller. The customization is done on the basis of warranties being offered by the seller to the buyer. Also, if the product or good has any stipulation to be met to complete the transaction, customization can be done. Guaranteeing about the authenticity and history of an item being sold, you need not worry about the modifications.

Why Do You Need a Bill of Sale?

When an owner assigns you the rights and interests for the vehicle, your position is actually secured and you are protected from the potential problems. Having a bill of sale can literally save you from a nightmare down the road. Also, this document comes in handy for the selling process. Moreover, templates of a free bill of sale are also available online. If you do not want to deal with the hassle of making a bill of sale form on your own, you can download bill of sale templates from our website for free.

Coming back to the why you need an auto bill of sale, this form actually proves that buyer now has the ownership for the property. Also, you may need a bill of sale template to perform the accounting and taxation. Moreover, a used vehicle is not registered without an auto bill of sale form. That is why it is able to prevent frauds. If the seller avoids recording the sale in a vehicle bill of sale, then you should try not to make any deals with them; instead, try to convince them. No matter what, you must always create a bill of sale for your goods.

When and When Do Yon Not Need a Car Bill of Sale?

You would need a bill of sale form in the following situations;

  • When you own a motor cycle or any other property (not a real estate) which you would like to sell and record the details of the good.
  • When you plan to purchase a vehicle or any other item from a private seller having evidence of purchase along with the record of agreement.

You do not need a car bill of sale form in the following situations;

  • You do not need it when you are purchasing real estate. Purchasing real estate property is a big property agreement having complicated requirements which is why a bill of sale must not be used in it.
  • You must also not use a bill of sale template when you are rendering services. If you are to render services for babysitting, woodworking or anything else, you should go for another contract and not a bill of sale.
  • When buying or selling small items which are cheap. This form of document should not be used for these type of sales because they might put you into complications.

What are the Elements Included in a Bill of Sale Template?

If you are buying a vehicle in anytime soon, then you should understand that you would require a bill of sale in this regard. Protecting both the buyer and the seller by determining the terms and conditions, a bill of sale is one of the appropriate documents required in any transaction. If you are preparing to make your own bill of sale template, then you need to ensure about the following elements in the auto bill of sale.

The Date

The date in a bill of sale template is a very important element. The date written in the bill of sale will be the date of the actual purchase of the vehicle. Also, this date should be signed by both the buyer and the seller.

Detailed Description of the Vehicle

One of the most important elements that you must not forget to include is the detailed description of the vehicle. You should start by providing the type of vehicle; for example, is it a boat, vehicle, car, scooter, bike cycle or any other form. Also, if the car has a tattoo or anything else such as the brand mark that is visible clearly, you must include that too. Next, you need to put the specific vehicle information such as the model number, make, year, vehicle identification number (VIN), odometer reading and the color of the vehicle.

Names of the Buyer and Seller

The bill of sale is needed to specify the legal names of the parties which are the buyer and the seller. Along with the names, the section must also highlight that the seller is the first owner of the vehicle and they have the right to sell the vehicle and transfer the right of ownership to the buyer.

Purchase Price or Amount Paid for the Vehicle

Next in the list comes the purchase price of the vehicle or the amount that will be paid for the vehicle. It is likely that the buyer will pay the full amount for the car. As such, you must ensure to mention that the amount of the vehicle was paid in full on that date. Also, you need to specify which method they used to pay for the vehicle or if the buyer wishes to pay in installments.

Signatures of the Buyers and Sellers

In the end, you must ensure that both parties sign the bill of sale. A bill of sale template will not be considered complete and official until it is signed by both the parties.

How to Make a Bill of Sale Template?

Here is the way to make a bill of sale template;

  • Firstly, you must obtain all your up to date documents.
  • Add the description of the vehicle.
  • Search some bill of sale rules before taking the plunge of creating your own.
  • Write the full legal name of the buyer as well as the seller.
  • Write the agreed payment price and method between both the parties.
  • Mention the warranties or stipulations for the purchased item.
  • Use statement like, “I (seller’s name) hereby convey, sell or transfer the mentioned item for (price) to (buyer’s name and address).”
  • Ask a lawyer or some other party to review your bill of sale.
  • Sign and fill out the information together.
  • Get a print out of the copies and keep one or two with you and give the other to the buyer.

Now that you know how important it is to form a bill of sale template, you must never forget to have one while making purchases. Also, we have many types of blank bill of sale forms available such as a boat bill of sale, gun bill of sale and vehicle bill of sale on our website. You can download any of them for free, edit them and save your time!


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