How to Prepare a Bill of Sale?

Answer 1

A bill of sale is often prepared between parties who are buying and selling used vehicles or personal property that have any significant monetary value. The bill of sale contains the details of the purchase and is a legal document that is often prepared without the assistance of an attorney.

First, you will want to gather all of the information you need to prepare the bill of sale. You need the item’s description and any serial numbers. If you are selling a vehicle, all of the information needed will be on the title.

You will also need the names of the sellers and purchasers, the amount that the property or service is being sold for and any warranties that are included with the property.

Next, the bill of sale should include all of this information. Simply, indicate that on _____ (date)____ who is the seller is selling the _____ to ________, who is the buyer for ________ amount of money. Include the full description of the property.

Have signature lines with dates for all parties and have the document signed in front of a notary public and provide copies of the bill of sale to all parties.

It is important to include specific details of the sale, especially of the property being purchased. If you are selling a used car, you will need to include all of the information regarding the car; the year, make, model, mileage and even color. You may also want to include disclosures such as “sold as is” or if there are repairs that need to be made. Most states also require when selling vehicles that there is a statement on the bill of sale indicating that the seller has good title to the vehicle and that it is free of all liens and security agreements.

Check your states Department of Motor Vehicles for any additional requirements that are needed for a legal bill of sale. You may also find free forms at the DMV or online that can be filled in and signed. If you have any complications with any part of the bill of sale, check with an attorney to make sure you have all bases covered.