How to Create a Bill of Sale

Q: What makes a bill of sale legally valid?

A legally valid bill of sale must include: an accurate description of the item (with identifying numbers like VIN or serial number), the full names and addresses of both buyer and seller, the agreed sale price, the date of sale, and signatures from both parties. Some states also require notarization for vehicle sales.

Q: Does a bill of sale need to be notarized?

It depends on the state and the type of property. Louisiana, Maryland, Montana, Nebraska, New Hampshire, and West Virginia require notarization for vehicle bill of sale documents. For high-value transactions of any type, notarization adds credibility even when not required.

Last updated: March 6, 2026 · 8 min read · Free bill of sale templates →

A bill of sale is a legal document that transfers ownership of an item from a seller to a buyer. It documents what was sold, for how much, and when — protecting both parties from future disputes.

This guide walks through every field that belongs on a bill of sale, how to handle AS-IS clauses, when you need notarization, and state-specific requirements for vehicles.

What Is a Bill of Sale?

A bill of sale is not just a receipt. While a receipt confirms that money changed hands, a bill of sale:

Legally transfers ownership from seller to buyer
Documents the item's condition and identifying details at the time of sale
Records that the buyer accepted the item (usually AS-IS)
Provides legal protection if ownership is later disputed
May be required by a government agency to register or title the property

Required Fields on a Bill of Sale

Every bill of sale should contain these elements:

1. Both Parties' Information

Full legal name of the seller
Full legal name of the buyer
Mailing addresses for both parties
Contact information (phone, email)
For vehicles: driver's license numbers for both parties

2. Item Description

The description should make the item uniquely identifiable. Include:

Vehicles: Year, make, model, color, VIN, odometer reading, title number
Boats: Make, model, year, HIN (Hull Identification Number), engine serial number, any included trailer
Equipment/Machinery: Manufacturer, model, serial number, year, condition
Electronics: Make, model, serial number, IMEI (for phones), condition
General property: Detailed description, color, size, condition, any unique features

3. Sale Terms

Purchase price (write out in both numbers and words: "$8,500.00 (Eight Thousand Five Hundred Dollars)")
Payment method (cash, wire transfer, cashier's check, etc.)
Date of sale
Whether any additional items are included (trailer, accessories, documents)

4. AS-IS Clause

The AS-IS clause is one of the most important parts of a bill of sale. It states that the buyer accepts the item in its current condition, with no warranty from the seller. After both parties sign, the seller is not responsible for any defects, damage, or issues discovered after the sale date.

A standard AS-IS clause reads:

"The [item] is sold AS-IS, WHERE-IS, with no warranties expressed or implied by the Seller. The Buyer has had the opportunity to inspect the [item] and accepts it in its current condition."

5. Seller's Representations

The seller should represent that they own the item free and clear:

They are the lawful owner
The item is free from all liens and encumbrances
They have full authority to sell

For vehicles: always verify there's no lien on the title before buying. A vehicle with a lien means the seller still owes money on it — that lien follows the vehicle, not the seller.

6. Signatures

Both parties must sign and date the bill of sale. Print at least two copies — one for the seller, one for the buyer. Both parties should sign both copies.

Vehicle Bill of Sale — Special Requirements

Vehicles require additional fields beyond the basics:

Odometer Disclosure Statement — federally required for vehicles under 10 years old. The seller certifies the odometer reading is accurate and hasn't been tampered with.
Title number — the existing title number (the buyer will surrender this to get a new title in their name)
State of title — which state issued the current title

State	Specific Requirement
California	Smog cert required; seller must file Notice of Release of Liability within 5 days
Texas	6.25% motor vehicle tax on SPV or sale price (higher); Form 130-U required
Florida	HSMV 82050 optional; 6% sales tax + county surtax; 30-day title transfer
New York	DMV Form MV-912 recommended; 8%+ combined sales tax; 30-day registration
Illinois	RUT-50 form required; flat-rate private party use tax; 20-day title transfer

State-specific templates: Use our California, Texas, Florida, New York, or Illinois vehicle bill of sale templates — each includes state-specific disclosure sections.

Notarization

Notarization adds a layer of legal credibility — a notary public witnesses the signing and applies their seal, making it significantly harder to dispute later.

When notarization is required:

Louisiana, Maryland, Montana, Nebraska, New Hampshire, and West Virginia require notarization for vehicle title transfers
Some states require notarization for boat registration
High-value personal property transactions (jewelry, antiques, collectibles)

When notarization is recommended (even if not required):

Any transaction over $5,000
Firearms transfers
Out-of-state transactions where parties can't meet in person
Any transaction where you have reason to expect a future dispute

Step-by-Step: Creating a Bill of Sale

Choose the right template — select a template specific to what you're selling (vehicle, boat, equipment, general property)
Fill in both parties' information — use full legal names and current addresses; for vehicles include DL numbers
Describe the item precisely — include all identifying numbers (VIN, serial number, HIN); be thorough
Write the sale price in full — both numerals and words
State the payment method — cash, cashier's check, wire transfer
Include the AS-IS clause — don't skip this; it's your protection as a seller
Print two copies — both parties sign both copies
Get notarized if required — check your state's requirements before the meeting
File with the relevant agency if applicable — vehicles go to DMV; boats to maritime registry or equivalent

Frequently Asked Questions

What makes a bill of sale legally valid?

A legally valid bill of sale must include an accurate description of the item (with identifying numbers like VIN or serial number), the full names and addresses of both parties, the agreed sale price, the date of sale, and signatures from both buyer and seller. Some states also require notarization for vehicles.

Do I need a bill of sale for a private car sale?

Most states require a bill of sale to complete a vehicle title transfer at the DMV. Even where not legally required, it's strongly recommended — it documents the VIN, odometer reading, and that the buyer accepted the vehicle AS-IS, protecting both parties from future disputes.

Does a bill of sale need to be notarized?

It depends on the state and type of property. Louisiana, Maryland, Montana, Nebraska, New Hampshire, and West Virginia require notarization for vehicle bills of sale. For high-value transactions of any type, notarization adds credibility even when not required.

How many copies of a bill of sale do I need?

Print at least two copies — one for the seller and one for the buyer. Both parties should sign both copies so each has an original. For notarized transactions, the notary may also keep a copy or certify the originals.

Can a bill of sale be handwritten?

Yes — a handwritten bill of sale is legally valid as long as it includes all required information and is signed by both parties. However, a printed or typed document is less prone to legibility disputes and looks more professional for high-value transactions.