Bill of Sale Template (Free): General and Vehicle

What is a bill of sale?

A bill of sale is a short document in which a seller confirms that they have sold an item of personal property to a buyer. It identifies the seller and buyer, describes the item, states the price and the date, and is signed by the seller (and usually the buyer). It is evidence that the sale happened and of its terms. It is used for things you can move, such as cars, boats, equipment and furniture, not for land or buildings, which transfer by deed.

For most private sales of goods, a simple bill of sale is all the paperwork the parties sign. For larger or more complicated deals, such as a business buying equipment with delivery, inspection and warranty terms, a fuller purchase agreement is usually better, and the bill of sale is then the closing document that confirms the transfer.

Bill of sale vs title

For vehicles and other titled property, the certificate of title is the main ownership document. Ownership is transferred by signing the title over to the buyer and having the buyer apply for a new title with the state, under that state's rules. A bill of sale does not replace that step. It is supporting evidence of the sale, the price and the date and time of transfer, and many motor vehicle agencies ask for one, especially when the title has no space for the price, when the vehicle is not titled, or when the title has been lost.

When you need a bill of sale

• Car, truck or motorcycle. Private-party vehicle sales are the most common use. Many state motor vehicle agencies publish their own bill of sale form, and some require one in specific situations. Check your state's agency before the sale.
• Boat and trailer. Titling and registration rules for boats and trailers vary widely by state. Some states title them and some do not, and a bill of sale is often what the buyer shows to register them. Vessels documented with the US Coast Guard use the Coast Guard's own bill of sale form.
• Equipment and tools. Machinery, farm equipment, computers and business assets sold between individuals or small businesses.
• Livestock and horses. Sales of animals often use a bill of sale. Some states also require a brand inspection or other paperwork when cattle or horses change hands, so check your state's livestock rules.
• General personal property. Furniture, instruments, jewelry, collectibles and other higher-value items where either side may later need proof of the sale, the price or the condition at sale.

A bill of sale also helps the buyer with registration and sales tax, and helps the seller show when they stopped owning the item if something happens after the sale.

What a bill of sale should include

• Parties. Full legal names and addresses of the seller and the buyer. If a company is selling or buying, use its exact legal name and an authorized signer. If two people own the item, both should usually sign as sellers.
• Date (and, for vehicles, time) of sale. When ownership and possession pass. The time matters for vehicles because it shows who was responsible for parking tickets, tolls or an accident around the handover.
• Description of the item. Enough detail to identify it: make, model, year, color, serial number and condition. For a vehicle: year, make, model, body type, the 17-character vehicle identification number (VIN) for most modern vehicles, title number and odometer reading. For a boat: the hull identification number (HIN) and any engine serial numbers.
• Price and payment. The purchase price in words and figures, and how it was paid (cash, check, transfer). If the price is a gift or a trade, say so. If the buyer is paying over time, record that and use a separate promissory note.
• "As is" or warranty terms. Whether the item is sold "as is", or what the seller promises about its condition.
• Seller's statement of title. That the seller owns the item, has the right to sell it, and is transferring it free of liens and claims, or naming any lien that remains and how it will be paid off.
• Signatures. The seller signs. Having the buyer sign as well shows that the buyer accepted the terms, including any "as is" clause. Each party keeps a signed copy.
• Notary block (only if needed). Add one only if your state or the agency you are filing with requires it.

"As is" vs warranty

Most private sales of used items are made "as is". Under the Uniform Commercial Code (UCC) section 2-316, which most states have adopted for sales of goods, words such as "as is" or "with all faults" generally exclude the implied warranties, such as the implied warranty of merchantability (which applies only when the seller is a merchant dealing in goods of that kind) and the implied warranty of fitness for a particular purpose, unless the circumstances show otherwise.

"As is" has limits:

• It does not cancel promises you make. If the seller states facts about the item, such as "the engine was rebuilt last year" or "the mileage is accurate", those statements can be express warranties, and "as is" will not reliably protect a seller who misrepresents the item.
• It does not cover title. The seller's warranty that they own the item and can transfer it free of undisclosed liens (UCC section 2-312) is not excluded by "as is". It can be excluded or modified only by specific language or by circumstances that show the buyer knew the seller did not claim full title.
• It does not cover fraud. Hiding a known defect or lying about the item's history can lead to liability whatever the bill of sale says.
• Dealers face extra rules. The FTC Used Car Rule generally covers dealers who sell or offer for sale more than five used vehicles in a 12-month period, subject to the Rule's vehicle and seller exemptions and approved state alternatives. Covered dealers must display a Buyers Guide before offering a covered vehicle for sale and give the buyer a copy at the sale; it explains the vehicle's warranty status, including whether it is sold "as is" where allowed. Some states limit or prohibit "as is" sales of certain consumer goods or used vehicles by dealers. A private individual selling their own car is usually not a dealer, but check your state's rules.

Vehicle bill of sale: extra rules for cars and other vehicles

• The title transfers ownership. Complete the title transfer exactly as your state requires, using the signed title or the state's electronic title process, and obtain any required lien release if there was a loan. A lien release clears the lender's claim; it does not by itself replace the required ownership-transfer documents. The buyer then applies for a new title and registration. The bill of sale supports this; it does not replace it.
• Federal odometer disclosure. When ownership of a motor vehicle is transferred, federal law (49 U.S.C. 32705 and the rules at 49 CFR Part 580) generally requires the seller to give the buyer a written disclosure of the mileage, signed by both, and to state whether the reading is the actual mileage, exceeds the odometer's mechanical limits, or is not the actual mileage. For a titled vehicle, the disclosure is generally made on the title itself, or on a state-approved secure form or electronic system, not just on a bill of sale. Writing the mileage on the bill of sale is still useful as a record, but it may not satisfy the federal requirement on its own.
• Odometer disclosure exemptions. Under 49 CFR 580.17, the main exemptions are vehicles with a gross vehicle weight rating over 16,000 pounds, vehicles that are not self-propelled (such as trailers), vehicles of model year 2010 or older that are at least 10 years old, and vehicles of model year 2011 or newer that are at least 20 years old. In practice, as of 2026 a model year 2011 or newer car or light truck still needs an odometer disclosure; model year 2011 vehicles reach the 20-year exemption on 1 January 2031. Some states have their own odometer rules, so check your state's requirements too.
• State forms and steps. Many state motor vehicle agencies publish a bill of sale form, a notice of sale or release of liability that the seller files after the sale, and rules on whether the license plates stay with the seller or the vehicle. Some states do not title older vehicles or certain trailers, and a bill of sale may then be one of the main documents the buyer uses to register. Use your state's form if it has one, or make sure your own document contains everything the form asks for.
• Liens. Check the title for a lienholder before you pay. If the seller still owes money on the vehicle, the lender must release its lien before a clean title can issue to the buyer.
• Sales tax. The buyer usually pays sales or use tax when registering the vehicle. States calculate it differently, and some use a standard value rather than the price you write down, so record the true price.

Does a bill of sale need to be notarized?

Usually not. A general bill of sale between two private parties is generally valid when signed, without a notary. Vehicle and boat transfers are the main exception: a few states require a notarized bill of sale for some vehicle or vessel transfers, and others require the seller's signature on the title to be notarized. The rules depend on the state, the type of vehicle and sometimes the circumstances of the sale. Check your state's motor vehicle agency (or the agency that registers boats) before you sign. If you are not sure, signing in front of a notary costs little and removes doubt about who signed.

Free bill of sale templates (sample text)

Copy the text below into Word and fill in the brackets. Both samples are original, general US samples, not tied to any state. They are starting points, not finished documents. If your state's motor vehicle agency publishes its own form, use that form or make sure yours covers everything it asks for.

Sample 1: general bill of sale (completed fictional example)

This example shows what a finished bill of sale for a used item can look like. The people and details are fictional.

Copy general bill of sale text

Sample 2: vehicle bill of sale (fill-in template)

For a private sale of a car, truck or motorcycle. Use it alongside the required title-transfer documents and any required federal odometer disclosure. The installment option below assumes an unsecured promissory note: it gives the seller no lien on the vehicle. If the seller wants the vehicle as collateral, have qualified counsel prepare the financing documents and confirm the state's lien-recording and title-transfer requirements before using this sample.

Copy vehicle bill of sale text

Not legal advice. These samples are not tailored to any state or transaction. Check your state's rules on vehicle title transfer, odometer disclosure, notarization, sales tax and dealer sales, and use your state's official form where one is required.

Common mistakes with a bill of sale

• Treating the bill of sale as the title. For a titled vehicle or boat, the buyer still needs the signed-over title. A bill of sale alone usually will not get a new title issued.
• Skipping the odometer disclosure. For vehicles that are not exempt, make the federal disclosure where your state requires it, usually on the title.
• Not checking for liens. A buyer who pays without checking the title for a lienholder may end up with a vehicle the seller's lender can still claim.
• Vague descriptions. "One car" or "one guitar" proves little. Use the VIN, HIN or serial number.
• Writing a false price. Understating the price to reduce sales tax can be unlawful and leaves both sides without a reliable record.
• Relying on "as is" after making promises. Statements about mileage, accidents or repairs can still bind the seller. Disclose known problems in writing.
• Forgetting the seller's after-sale steps. Where your state has a notice of sale or release of liability, file it promptly, and follow your state's rule on the license plates.

How to draft or review a bill of sale in Word with LexDraft

LexDraft is a Word add-in from Microsoft AppSource. It opens as a side panel in Word 365 (Windows and Mac), Word 2021 and Word on the web, so the bill of sale stays in the document you are already editing.

What LexDraft does not do: it does not give legal or tax advice, fill in or file state motor vehicle forms, make the federal odometer disclosure for you, or check a title for liens. You check every output before anyone signs.

Reviewing a sale document someone else drafted?

• Purchase agreement review (UCC Article 2)
• Warranty clause review
• Asset purchase agreement review
• Contract review checklist: 20 points