Free Bill of Sale Template
A bill of sale transferring ownership of equipment, vehicles, inventory or business assets, with price, condition, title warranty and liens.
A bill of sale is a document that transfers ownership of personal property, such as equipment, a vehicle or business assets, from seller to buyer. It records the price, what is sold, its condition and whether the seller guarantees clear title.
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BILL OF SALE
Date: [DATE]
1. SELLER. [SELLER NAME], [ADDRESS] ("Seller").
2. BUYER. [BUYER NAME], [ADDRESS] ("Buyer").
3. PROPERTY SOLD. Seller sells and transfers to Buyer the following property ("Property"):
[DESCRIBE IN DETAIL, e.g., make, model, year, serial number or VIN, quantity. For multiple items, attach Schedule A.]
4. PRICE. Buyer pays $[AMOUNT], [receipt of which Seller acknowledges / payable as follows: [TERMS]].
5. TITLE. Seller warrants that Seller is the lawful owner of the Property, has the right to sell it, and that the Property is free of all liens, security interests and claims [except: LIST ANY LIENS, AND HOW THEY WILL BE PAID OFF].
6. CONDITION. [Choose one:]
(a) The Property is sold "AS IS, WHERE IS," with no warranties about its condition, including any implied warranties of merchantability or fitness for a particular purpose, to the extent permitted by law.
(b) Seller warrants that the Property [is in good working order / meets the following description: [DESCRIBE]] on the date of sale.
7. DISCLOSURES. Seller has disclosed the following known defects: [LIST OR "None known"]. [For motor vehicles: Odometer reading: [MILES], which to Seller's knowledge reflects actual mileage, as required by federal odometer disclosure law.]
8. DELIVERY AND RISK. The Property will be delivered [at [LOCATION] on [DATE] / collected by Buyer]. Risk of loss passes to Buyer on [delivery / payment].
9. TAXES AND REGISTRATION. Buyer is responsible for any sales or use tax, and for title transfer and registration where required, unless stated otherwise: [TERMS].
10. GOVERNING LAW. This Bill of Sale is governed by the laws of [STATE].
SELLER: ______________________ Date: __________
BUYER: _______________________ Date: __________
[NOTARY ACKNOWLEDGMENT, IF REQUIRED FOR VEHICLES OR VESSELS IN YOUR STATE]
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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.When to use this template
- Selling or buying used equipment, furniture, a vehicle or business assets.
- Transferring assets as part of a small business sale.
- Documenting a private sale for tax or insurance records.
How to fill it in
- Describe the property precisely, with serial numbers or VIN.
- Enter the price and payment terms.
- List any liens and how they will be cleared.
- Choose "as is" or a specific condition warranty.
- For vehicles, include the odometer disclosure and check whether your state requires notarization or its own form.
Key clauses to check
- Title warranty
- Protects the buyer if someone else claims the property or a lender has a lien.
- As-is
- Excludes implied warranties, where state law allows.
- Liens
- Unpaid loans secured on the property can follow it to the buyer.
- Odometer disclosure
- Federal law requires mileage disclosure on most vehicle transfers.
Frequently asked questions
Is a bill of sale legally binding?
Yes, as evidence of a transfer of ownership, when signed by the seller and ideally the buyer.
Does a bill of sale need to be notarized?
Usually not, but some states require notarization or a specific form for vehicles and boats.
What does "as is" mean in a bill of sale?
The buyer accepts the property in its current condition without warranties, subject to any state-law limits.
What should a bill of sale include?
A bill of sale should include the names and addresses of buyer and seller, date of sale, a detailed description of the item with serial or VIN numbers, purchase price and payment method, any warranties or an as is statement, and signatures. Vehicle sales may also need an odometer disclosure and title transfer under state rules.
Can I write my own bill of sale?
Yes. A handwritten or typed bill of sale is generally valid if it includes the key details and both parties sign. Some states provide official forms for vehicles, boats or trailers and may require them for registration. Check your state motor vehicle agency for specific requirements before selling a vehicle.
Want to check if a contract is fair before you sign?
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Read before you sign
- Asset Purchase Agreement Checklist for Small Business BuyersAn asset purchase agreement checklist for small business buyers: assets, liabilities, price, allocation, consents, reps, indemnity and closing steps.
- Asset Purchase Agreement vs Bill of Sale: Do You Need Both?Asset purchase agreement vs bill of sale: what each document does, why buying a business usually needs both, and when a bill of sale alone is enough.
- What Happens to Employees When You Buy a Business in an Asset Sale?Does an asset purchase agreement include employees? How hiring, final pay, accrued vacation, WARN, COBRA, I-9s and payroll work when you buy assets.
- Earnout Clauses When Buying or Selling a Small Business: How They Work and Where They Go WrongEarnout clauses in a small business sale explained: how payments are measured, who controls the business, and the wording that leads to disputes.
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This free template is general information, not legal advice, and is no substitute for a qualified attorney. Laws vary by state; have it reviewed by a lawyer before you use or sign it.