How do i write out a bill of sale

Whenever you sell something of value, it’s a good idea to provide your customer with documentation of the transaction. If you are the buyer, it’s in your best interest to have evidence that the item now belongs to you. A bill of sale is the type of written document that has been used for centuries to achieve this purpose, according to Nolo.com.

Function

1. A bill of sale serves to provide a written record of the terms and circumstances of a sale and to furnish the buyer with proof that ownership has been transferred to her. When your business makes a sale, the bill of sale is helpful as a record for accounting and tax purposes. Bills of sale are used -- and sometimes required by state law -- when a business sells cars, boats and a variety of other properties such as appliances, computers, electronics and furniture.

Basic Information

1. There is no single format for a bill of sale, but it needs to clearly state that your business is transferring ownership of the property to the buyer. In general, the item plus a description is included along with identifying information such as the product serial number. Your business's name, the price, the date and the location of the sale must be written on the bill of sale. You may need to include the buyer’s name. A bill of sale needs to state if the sale includes a warranty or if you are selling the item “as is.”

Procedure

1. You can write out a bill of sale by hand. However, when you run a business and provide bills of sale on a regular basis, using a printed form is easier and saves time. General-purpose bills of sale are available at office supply stores. Alternatively, you can find bill of sale templates online and usually print them for free. A bill of sale should be made out at the time of sale and given to the customer after payment is received. As the seller, you must sign the bill of sale. For small items, your customers may not need to sign, but may have to for large transactions such as transferring ownership of a car. Give the buyer a copy of the completed bill of sale and keep another copy for your records.

Considerations

1. Some transfers of ownership, such as selling a car or boat, are regulated by state agencies. Typically, these sales involve property that requires a title. In some states, the title itself serves as a bill of sale. In others, a separate document is needed. States may require that a bill of sale meet specific criteria, so you should check with the appropriate state department of licensing for the type of property involved. You may also need to have your signature as a seller notarized. When you sell cars, vans and other motor vehicles, the mileage and a description of the vehicle’s condition or history should be written on the bill of sale. In some states this is mandatory.

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   If you’re selling your car to an individual, creating a bill of sale is a wise move. A bill of sale is a legal document that outlines the terms of the deal and serves as proof that the vehicle was sold. The document usually includes identifying information about the buyer and seller, conditions attached to the sale, the date of the transfer, and the car’s purchase price. 

   Key Takeaways

   • A bill of sale is a legal document that outlines the terms of your agreement with the buyer.
   • Bills of sale are required to sell a car in 16 states.
   • Bills of sale may be required to register a new car.
   • In some states, a bill of sale must be notarized.

   What Is a Bill of Sale? 

   Bills of sale are used for a range of transactions but are especially common in car, truck or recreational vehicle sales. The bill of sale is a record of the transaction, serving as an invoice and receipt, and outlines any guarantees or conditions attached to the sale. For the seller, a bill of sale can prove that you’re no longer liable for the vehicle if it’s involved in an accident. If any disputes go to court, the bill of sale will be reviewed to see the terms both parties agreed to honor. 

   Bills of sale are legally required in the following states: 

   • Alabama
   • Arkansas
   • Colorado
   • Connecticut
   • Hawaii
   • Idaho
   • Maine
   • Nebraska
   • New York
   • Ohio
   • Rhode Island
   • South Dakota
   • Vermont
   • Washington
   • West Virginia
   • Wyoming

   
   In some states, the bill of sale must be notarized to be recognized as valid. Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana all require a notary public to witness both parties signing the bill of sale.

   Even if your state doesn’t require a bill of sale, consider creating one to provide you with extra protection. 

   What to Include

   If you’re creating your own bill of sale, it should include the following: 

   • Vehicle details: List identifying information about the vehicle, such as year, make, model, and color. 
   • VIN: The vehicle identification number (VIN) acts as your car’s fingerprint, its unique identifier. 
   • Odometer reading: Check the odometer at the time of the sale and record its mileage. 
   • Payment details: Write down the sale price and how you agreed to be paid. In most cases, the buyer will pay a lump sum. However, if you agreed to installments, describe the agreed-upon terms. 
   • Terms and Cconditions: Make sure the bill of sale includes language that the car is being sold “as is”—that you make no guarantees about its condition or offer any form of warranty. 
   • Buyer and seller information: The names, addresses and phone numbers of both parties should be on the bill of sale. 
   • Signatures: Buyer and seller should sign and date the bill of sale. 

   In some states, the department of motor vehicles or highway safety will have bill of sale templates for you to download. For example, Florida, California, and New York all have PDF bills of sale you can use. 

   Other Necessary Documents

   Though the bill of sale is a useful document, ownership of the car doesn’t legally change hands until the title is transferred to the new owner. Typically, you and the buyer can go to the local DMV and complete the necessary paperwork together. 

   The buyer usually has 10 to 30 days after buying the car to apply for a title transfer, pay the necessary title fees, and register the vehicle. After that, late fees may be imposed. 

   Selling Your Car

   If you plan on selling your car, a bill of sale protects you and prevents misunderstandings with the buyer. Even if your state doesn’t require you to have a bill of sale, having one will only help. 

   Is a handwritten bill of sale OK?

   Can a bill of sale be handwritten? While it is common to present a bill of sale in a digital format, you can also create this type of contractual agreement as a handwritten document on paper. What's most important is to include all of the pertinent details in the bill of sale in order to protect both parties.

   Can a bill of sale be handwritten in Alabama?

   Can a Bill of Sale be handwritten in Alabama? Technically, yes although most people dont do this. It should have the basic vehicle information like the year, make, and model plus the odometer reading, the purchase price, date of sale, VIN and signatures from both the buyer and the seller.

   Can bill of sale be handwritten in Iowa?

   To complete a bill of sale in Iowa, you can either use a template as found online or at your local DOT office, or you may write up your own. Your document should be considered valid as long as all of the information is complete, including the signatures.

   Can you hand write a bill of sale in Georgia?

   Is a handwritten bill of sale legal in Georgia? In Georgia, a bill of sale for a car does not need to be notarized. Like the state form provided, any hand-drafted bill of sale will have to contain the following information: The names, contact information, and signatures of the seller and the buyer.