How to Write Bills of Sale
A bill of sale is an official document that conveys, or transfers, personal property from one party to another. Often, it is the only document between a buyer and seller that defines all of the terms of the sale, including the rights and responsibilities of both parties. The bill of sale states the price that will be paid, and the terms under which the sale will be completed, as well as any warranties for the item or special financing terms involved. In many states, the bill of sale is the document that determines the sales tax due on an item.
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Instructions
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Negotiate the terms of the sale with the other person. Determine the price of the property, as well as if the property is sold with any type of warranty or if it is sold as is. Decide if the product will be delivered, or if the item will be picked up in its present location by the buyer. Negotiate the type of payment, if it will be all cash or by personal check. Also, decide if the purchase price must be paid in full at the time of sale or if payments are to be made over time. If payments are involved, define what happens if the person does not pay for the item.
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Write the bill of sale, including all of the negotiated terms. Name the buyer and seller in the bill of sale, and also include each person's address. Describe the property to be sold carefully, including any identifying information. You must include a vehicle identification number (VIN) if the transaction involves a vehicle. If a trade is involved, all traded property should be clearly identified and named. The bill of sale can be written in simple English prose, or you can use a downloaded template. Technical-legal language is generally not necessary, as long as everything is written and explained clearly and precisely.
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Sign the bill of sale, and have the other party sign as well. It is a good idea to exchange identification, such as a driver's license, and indicate the number of the identification on the bill of sale. Complete the transaction according to the agreement that you have detailed in the bill of sale.
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Tips & Warnings
If the property being transferred is expensive, or the agreement complex, you may want to have your bill of sale notarized. Most banks have a notary available to notarize documents for their customers. If notarizing a bill of sale, both parties should sign the document in front of the notary, who will then put her seal on the document and sign it herself.
Be certain that all terms of the sale are legal, or your bill of sale will not be valid, and you could have committed fraud. Be careful of scams when selling any property that you advertise.
