To write a bill of sale, put the date at the top, name the seller and buyer with their addresses, describe the item precisely enough that a stranger could identify it, state the price in numbers and words, include a sentence transferring ownership, add any disclosures the sale requires (odometer reading for vehicles, lien status, as-is language), and have both parties sign. A blank sheet of paper works as well as a printed template so long as those elements are present.
One thing to understand before you start: a bill of sale is a receipt, not a title. For cars, boats, and other titled property, the government-issued title is what proves ownership. The bill of sale documents that the transaction happened and supports the title transfer; it does not replace the title.
What the Document Needs to Contain
Gather these details before you sit down to write. Missing information slows down registration and creates ambiguity you may have to argue about later.
- Full legal names and addresses of buyer and seller, matching government-issued ID. For a business, use the registered business name.
- A specific item description. For vehicles: year, make, model, color, body style, and Vehicle Identification Number (VIN). For other property: brand, model number, serial number, and condition.
- The purchase price, in both numerals and words. If a trade-in or services are part of the deal, describe each component and assign a dollar value.
- The date of sale.
- Odometer reading, for most vehicle sales (see below).
- Lien status: whether any outstanding loan or security interest exists on the item.
Putting the Document Together
Header and Parties
Title the page “Bill of Sale.” Below it, identify both sides in a single sentence: “This Bill of Sale is entered into on [date] between [Seller’s Full Legal Name], residing at [Seller’s Address] (‘Seller’), and [Buyer’s Full Legal Name], residing at [Buyer’s Address] (‘Buyer’).” Labeling the parties up front lets you use the short terms throughout.
Item Description
Describe the property in enough detail that someone who has never seen it could identify the exact unit. For a vehicle, the VIN is unique on its own, but include year, make, model, and color anyway because those are easier to verify by eye. For other property, include manufacturer, model name or number, serial number if there is one, and a note on condition.
Price and Payment
State the price clearly: “The Buyer agrees to pay the Seller $4,500.00 (Four Thousand Five Hundred Dollars).” Writing it twice eliminates argument. If payment is split between cash and a trade-in, spell out each piece and its value. The figure matters beyond the transaction, because most states use the bill of sale price to calculate sales or use tax when the buyer registers a vehicle. Understating the price to shave the tax bill is both detectable and illegal.
Transfer of Ownership
Include a sentence that actually transfers the property. Something like: “The Seller hereby transfers and conveys all right, title, and interest in the above-described property to the Buyer.” This is the sentence that gives the document its legal function. Without it, you have a description of an item and a price, not a transfer.
Signatures
Both parties should sign and print their names, with the date, at the bottom. Some states only require the seller’s signature; others require both. Getting both regardless is the safest approach and costs you nothing.
The As-Is Clause and What It Does Not Cover
Most private sales happen “as-is”: the buyer accepts the item in its current condition, and the seller makes no promises about function, lifespan, or hidden problems. Say so explicitly in the document. Under the Uniform Commercial Code, language like “as is” or “with all faults” eliminates implied warranties, the unspoken guarantees the law would otherwise assume the seller is making about basic functionality.1Legal Information Institute. UCC 2-316 Exclusion or Modification of Warranties
Here is the limit most people miss. An as-is clause only wipes out implied warranties. It does not erase express warranties. If the seller said “the engine was rebuilt last year” or “the roof doesn’t leak,” those specific statements survive the as-is language, and if they turn out to be false the buyer may still have recourse. If you’re selling, don’t make specific claims unless they’re true. If you’re buying, get any verbal promises written into the document, because proving later what someone said is much harder than pointing to a page.
Odometer Disclosure for Vehicle Sales
Federal law requires the seller of a motor vehicle to give the buyer a written odometer disclosure as part of the ownership transfer. It must include the cumulative mileage on the odometer, and the seller must certify whether that reading reflects the vehicle’s actual mileage or whether the actual mileage is unknown.2Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles Both seller and buyer sign and print their names.
You can fold this into the bill of sale rather than using a separate form. Add a section stating the odometer reading, the date it was read, and whether the mileage is actual, exceeds the odometer’s mechanical limits, or is not the actual mileage. Both parties sign below that section.
Since January 1, 2021, odometer disclosures are required for every transfer of vehicles less than 20 model years old, starting with model year 2011. A 2011 vehicle, for example, needs the disclosure on every transfer through 2031.3National Highway Traffic Safety Administration. Consumer Alert – Changes to Odometer Disclosure Requirements Vehicles from model year 2010 and older fall under the previous rule and are exempt after 10 model years.
Rolling back an odometer or lying on the disclosure exposes the seller to a federal civil lawsuit. A buyer who proves intentional fraud can recover three times the actual damages or $10,000, whichever is greater, plus attorney’s fees and court costs. The suit must be filed within two years of discovering the fraud.4Office of the Law Revision Counsel. 49 USC 32710 – Civil Actions by Private Persons
Liens on the Property
If the item still has a loan against it, the lender holds a lien. Vehicles are the common case. A seller who still owes money cannot cleanly transfer the title until the loan is paid, because the lender’s name appears on the title as the lienholder. Buying a vehicle with an unresolved lien is risky: the lender can repossess from the new buyer, who is then left chasing the seller for a remedy.
The bill of sale should say where things stand. If the item is clear, a sentence like “The Seller warrants that the property is free from all liens, encumbrances, and security interests” works. If a lien does exist, describe how it will be satisfied. For vehicles, the safest arrangement is closing at the lender’s office or having the seller pay off the loan before you hand over money, so the lien release can be verified in real time.
Notarization and Witnesses
Whether the document needs to be notarized depends on your state and what you’re selling. Louisiana, Montana, Nebraska, Maryland, New Hampshire, and West Virginia require notarization for vehicle bills of sale before a title transfer can go through. Most states do not. Check with your state’s motor vehicle agency if you’re unsure.
Even where it isn’t required, notarization helps. A notary verifies the identity of the signers, which makes it much harder for either party to later deny the sale. For a high-value transaction, the cost (typically under $15) is worth it. A witness signature works similarly: an independent person who can confirm the sale took place if a dispute arises.
If You Receive More Than $10,000 in Cash
If you receive more than $10,000 in cash from a single sale or a series of related payments, and you’re acting as part of a trade or business, federal law requires you to file IRS Form 8300 within 15 days.5Office of the Law Revision Counsel. 26 USC 6050I – Returns Relating to Cash Received in Trade or Business6Internal Revenue Service. Instructions for Form 8300 The form requires the buyer’s name, address, taxpayer identification number, the cash amount, and the nature of the transaction.
“Trade or business” is the key phrase. A one-time private sale of your personal car probably doesn’t trigger the rule, because you’re not in the business of selling cars. If you regularly buy and resell vehicles or equipment, you likely are, and the reporting obligation applies. Cashier’s checks, bank drafts, and wire transfers are not treated as “cash” for this purpose and don’t trigger filing.7Internal Revenue Service. Report of Cash Payments Over $10,000 Received in a Trade or Business Splitting a transaction to stay under the threshold (two $6,000 payments instead of one $12,000 payment) is a federal crime.
After Both Sides Sign
Print at least two copies. Both parties sign every copy, and each keeps one. If the document was notarized or witnessed, those signatures appear on all copies. Some sellers make a third copy for tax records, which is a good habit if you sell often.
Store your copy where it won’t be lost or destroyed. A fireproof safe, a safe deposit box, or a scan saved to cloud storage all work. For a vehicle sale, the buyer needs the bill of sale when applying for the title transfer at the local motor vehicle office; most states require that application within 30 days of the sale date, so don’t let the paperwork sit. The seller should also notify the state’s motor vehicle agency that the vehicle has been sold, which protects them from liability if the new owner picks up parking tickets or has an accident before registering the car.