To write a bill of sale, put five things on the page: the date of the sale, the full names and addresses of the buyer and seller, a precise description of what’s being sold, the purchase price in both numerals and words, and the signatures of both parties. That’s the core of the document. Everything else — odometer readings, as-is language, warranty terms, notarization — either applies because of what you’re selling or because you want extra protection against a dispute later.
A bill of sale is a written receipt for the transfer of personal property. It records who sold what to whom, for how much, and when. Done right, it protects both sides. Done sloppily, it creates registration headaches, tax problems, and arguments that cost more to resolve than the item was worth.
The Five Things Every Bill of Sale Must Contain
A stranger reading your bill of sale months after the sale should be able to reconstruct exactly what happened. At a minimum, include:
- The date of sale. This is the day ownership changed hands. It anchors tax reporting, warranty periods, and liability for anything that happens after.
- Full legal names and current addresses for both the buyer and the seller. First names only, or missing addresses, make the document much harder to enforce.
- A description of the property detailed enough to identify it specifically. For a vehicle, that means year, make, model, color, and VIN. For other property, use serial numbers, model numbers, or distinguishing features.
- The purchase price, written in both numbers and words — for example, “$5,000 / Five Thousand Dollars.” When those don’t match, the written-out amount typically controls, so get both right.
- Signatures of both the buyer and the seller, dated. Some states only require the seller to sign, but having both signatures strengthens the document as evidence that both sides agreed to the terms.
Parties, property, price, date, signatures. Cover those and you have a working bill of sale.1Legal Information Institute. Bill of Sale
Extra Requirements for Vehicle Sales
Vehicles are the most common reason people write a bill of sale, and they bring requirements that don’t apply to other property.
Odometer Disclosure
Federal law requires anyone transferring ownership of a motor vehicle to give the buyer a written odometer disclosure. The seller must state the cumulative mileage on the odometer, or, if the seller knows the reading is inaccurate, disclose that the actual mileage is unknown.2Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles A vehicle cannot be licensed in any state without this disclosure attached to the title application.
Many state title forms include a dedicated space for the odometer reading, so completing the title transfer may satisfy the federal requirement. Putting the reading on your bill of sale as well gives you a second layer of documentation. Don’t fudge the number. A person who commits odometer fraud with intent to deceive is liable for three times the buyer’s actual damages or $10,000, whichever is greater, plus attorney’s fees.3Office of the Law Revision Counsel. 49 USC 32710 – Civil Actions
VIN and Vehicle Details
Write the full 17-character VIN on the bill of sale. “2019 Honda Civic, blue” describes thousands of cars. The VIN describes one. If the vehicle is currently registered, include the license plate number, and note the general condition of the vehicle at the time of sale.
Liens
If there’s still a loan against the vehicle, a lien exists on the title. Selling without disclosing it is asking for trouble. The buyer may not be able to register the vehicle until the lien is cleared, and a buyer who was kept in the dark may have grounds to sue to recover their losses.
If the lien has been paid off, give the buyer written proof of satisfaction from the lender, typically a release letter on official letterhead signed by an authorized officer. If the lien is still active, say so, and document in the bill of sale how the payoff will be handled — often the buyer’s payment goes directly to the lender, with any surplus going to the seller.
Optional Clauses Worth Adding
The elements above make the document functional. The clauses below aren’t required, but each one addresses a problem that regularly blows up in private sales.
As-Is
An as-is clause tells the buyer they’re taking the property in its current condition, with no promises about how well it works or how long it will last. Under the Uniform Commercial Code, which every state has adopted in some form, language like “as is” or “with all faults” excludes the implied warranties that would otherwise apply.4Legal Information Institute. UCC 2-316 – Exclusion or Modification of Warranties
This matters most in used vehicle sales. Without the clause, a buyer can argue the seller implicitly promised the car was roadworthy. With it, the seller has a clear defense. One caveat: an as-is clause does not protect a seller who hides known defects. If the transmission is slipping, say so.
Warranty Terms
If the seller is willing to stand behind the property, write out exactly what’s covered, for how long, and what happens if something goes wrong. “Guaranteed to work” invites disputes. A useful warranty clause names the covered components, the time or mileage limit, and whether the remedy is repair, replacement, or refund.
Dispute Resolution
A dispute resolution clause sets out how the parties will handle disagreements — through mediation, arbitration, or both in sequence — rather than going straight to court. Arbitration is usually faster, cheaper, and private, but binding arbitration decisions are generally final with limited rights of appeal. For a used car or piece of equipment worth a few thousand dollars, filing a lawsuit often costs more than the item in dispute, so agreeing in advance on a cheaper path makes sense for both sides.
Governing Law
If the buyer and seller live in different states, name which state’s laws apply if things go wrong. Without that, sorting out jurisdiction adds expense and delay to any later dispute.
Payment Terms
Document the payment arrangement whenever the deal isn’t a straight cash-for-property exchange. If the buyer is paying in installments, state the total price, the payment schedule, what happens if a payment is missed, and whether the seller keeps a security interest in the property until paid in full. For lump-sum payments, record the method — cash, certified check, wire transfer — so there’s evidence the buyer actually paid.
Signing, Witnessing, and Notarizing
A bill of sale with blank fields is worse than no bill of sale, because empty space invites someone to fill it in later. Review every field before signing. If something doesn’t apply, write “N/A” rather than leaving it blank. If the document is handwritten, print clearly.
Both parties should sign and date the document in each other’s presence. A witness isn’t legally required in most situations, but a witness who can testify that both parties signed voluntarily becomes valuable if the sale is later challenged.
Notarization is a separate step: a notary public verifies the signers’ identities and witnesses the signatures. Whether you need a notarized bill of sale depends on your state and the type of property. Roughly ten states require notarization for vehicle title transfers, and some extend the requirement to the bill of sale. Even where it isn’t required, notarization makes it much harder for either side to later claim they didn’t sign. For any transaction worth more than a few thousand dollars, the notary fee is worth paying.
Keep a Copy
Make at least two signed copies, one for each party. The buyer typically keeps the original. Store your copy somewhere secure — a fireproof safe, a locked file, or a scanned digital backup. You may need the document years later for insurance claims, to prove you no longer own the property, or for tax purposes.
That last point matters more than people realize. If you ever sell a collectible, classic car, antique, or artwork for more than you paid, the gain is a capital gain and has to be reported.5Internal Revenue Service. Publication 544 (2025) – Sales and Other Dispositions of Assets Your bill of sale is the primary evidence of what you paid, which is what sets your cost basis. Lose the document and you can end up paying tax on a larger gain than you actually realized. On the other side of the transaction, many states charge sales tax on private-party vehicle purchases and use the price on the bill of sale to calculate it. Understating the price to lower the buyer’s tax bill is fraud, and states track the fair market value of common vehicles.
Bill of Sale vs. Title
One last thing worth being clear on: a bill of sale is not a title. A title is a state-issued document that declares legal ownership. A bill of sale is a receipt that records the terms of the transaction. For a vehicle or any other titled property, you need both. The title transfers ownership; the bill of sale documents the sale. A buyer who leaves with only a bill of sale cannot register the vehicle, and a seller who hands over only a signed title has no written proof of what the buyer agreed to pay or when the sale happened.