Usually, this is used to sell to give property to close friends and family.īill of Sale with Warranty: This type of bill of sale provides additional protection for the buyer What to Include in a Bill of SaleĪ bill of sale includes information about the item being sold as well as information about the seller and new owner. Like an absolute bill of sale, it proves the transaction occurred and the buyer owns the property, but the seller offers no guarantees. Quitclaim Bill of Sale: A quitclaim bill of sale is used to transfer ownership without a warranty of any kind. For example, if the buyer borrows money from a lender to purchase the item, they will only retain the asset if they make their payments. Types of Bill of SaleĪbsolute Bill of Sale: An absolute bill of sale is when the asset is being sold as is and the seller has no responsibility once a sale is complete.Ĭonditional Bill of Sale: A conditional bill of sale outlines criteria that must be completed in order for the sale to be complete. However, in the state of California, the DMV only needs the bill of sale if the owner’s name isn’t included on the title. In many places, such as New York, the department of motor vehicles (DMV) requires a bill of sale and title to prove ownership of a car. Of course, this varies from state to state, so if you’re unsure whether or not you need to create a bill of sale, you should check your local laws. When Do You Need a Bill of Sale?įor businesses, a bill of sale is helpful for tax purposes, but is absolutely necessary if you’re selling:Īs a rule, companies should create a bill of sale whenever the law requires a proof of purchase. Buyers can then use the bill of sale to obtain a certificate of title if needed or register their purchase.Ĭheck out top law firms in your area by filtering by location, services offered, and your budget.

For example, a motor vehicle bill of sale is required in most states if someone sells their car.Ī bill of sale certifies the sale by recording the transfer of ownership between a seller and the new owner and protects both parties in case a disagreement regarding the asset arises in the future.Īs such, it frees the seller from any liabilities while providing proof of ownership for the buyer. While a simple receipt could be considered a bill of sale, it usually refers to the transaction of a very valuable asset. A bill of sale is a legal document that acts as a proof of purchase or proof of payment when someone sells or trades an asset.

Simple car bill of sale example