Bill Of Sale: What It Is And When You Need One (2026)
Contributor
Reviewed By Adam Ramirez, J.D.
Editor
Summary
- A bill of sale functions like a receipt
- It offers information on the item and on the parties involved
- A bill of sale helps protect you in a dispute
If you’re purchasing or selling any type of large or expensive item, a bill of sale is an important document. It’s similar to the receipt you get every time you purchase something because it displays what the item costs and that you paid for it
Take a closer look at what a bill of sale is and when you may need to get one.
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What Is a Bill of Sale?
A bill of sale is a document that records the transfer of goods from one person to another. Perhaps the most common example is a vehicle bill of sale. They offer a wealth of information, including the date of the transaction, the contact information of all of the parties involved, a description of the car and even an as-is clause.
How a Bill of Sale Works
A bill of sale legally records the moment ownership transfers from one person to another. For the seller, it also reduces liability in the event that the item causes harm to others. That’s one of the reasons why a bill of sale for a car is so vital.
Types of Bills of Sale
There are a few types of bills of sale. Absolute bills of sale are straightforward and final transactions, while a conditional one will depend on certain requirements being met. An example would be loan repayment.
You can also have a quitclaim. This type of bill of sale is necessary when the seller doesn’t have a title or other proof of ownership.
Bill of Sale vs. Receipt
A receipt is considered to be a bill of sale. The traditional bill of sale, however, will contain more information on the parties involved and the item.
Why You Need a Bill of Sale
A bill of sale can protect you in the event of a dispute. You could prevent issues from escalating into lawsuits if you have proof that both parties agreed to the transaction as written in the bill of sale.
In some instances, you may be required to have a bill of sale. This is especially the case with private vehicle sales. Georgia, for example, requires this type of document for cars that are from 1985 or earlier. In Vermont, however, all private vehicle sales must include this document.
The History and Evolution of Bills of Sale
Although bills of sale have existed since the Middle Ages, they began to look more like modern documents in the Victorian era. It wasn’t until the 21st century that they became more functional, offering vital information on all parties involved and not just on the item being sold.
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Bill Of Sale Knowledge Base
Read the latest information on Bill Of Sale and find answers to your questions. Currently there are 6 topics about Bill Of Sale .
How To Transfer Title
How To Write For Car
How To Sell Car Privately
Frequently Asked Questions
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Yes. As long as all legal requirements are met, the bill of sale can be handwritten.
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Any party involved in the sale should keep a copy for their records. Usually, this means the buyer and seller.
