Bill Of Sale Templates


What is a bill of sale? How can you generate one on your own? What are the contents mentioned in the bill of sale? Is it different than that of a receipt? If these questions pop up in your mind, then keep reading. Our experts have made deep research to answer all your queries regarding the bill of sale.

What is a bill of sale?
A bill of sale is an official document that contains the records of sales made to a customer. A simple bill of sale can be used for the exchange of goods as well. It may also contain a monetary record in return for a purchase or even may contain the details of goods used as a mortgage for a loan taken from a party. The bill of sales can serve more than one purpose. It can also be considered as a receipt in some cases. We can say that a bill of sales is simply an agreement for the change of ownership of some product. This document contains information about transferring the ownership to some other party. There can be monetary exchanges as well as some product exchanges too. A bill of sales is of much importance that it can be served as a record in front of the court whenever some dispute between two parties occurs. Note that, a bill of sales is more of a record than an agreement.

Keep in mind that, bills of sales and receipt are two different terms, and these should not be intermixed with each other. We will explain both terms in detail in the incoming paragraphs so stick with us. 

Is Bill of Sale a receipt?
A bill of sale may serve to be a receipt, but it is the case in all conditions. If we go deep into the difference between a bill of sale and receipt then we get to know that each receipt is a bill of sale, but each bill of sale is not a receipt. 

A receipt is a written request document which a company issue to a customer for the amount he owes to the company to purchase a product from the company. On the other hand, a bill of sale can be amount-based, or it also may be a recorded document for the exchange of solid products instead of monetary exchange for the buying purpose. These two definitions make us sure that a bill of sale and a receipt are two different documents, and these should not be intermixed with each other. Hence a bill of sales can be considered as a receipt, but a receipt cannot be considered as a bill of sales each time a purchase of a product is made between two parties.   

How to write a bill of sale?
As we know that a bill of sale is an official record document for change of ownership between two parties. So, it must be written with much care. Here we will provide a complete guide about how you can write a professional document for the bill of sales on your own without getting it customized by some person. Keep reading the below-mentioned guidelines for your help:

  • Find out rules of your state; some states in the world have defined a specific document as an official bill of sales agreement. While in some states you may not be required to do so. In those states, which do not require an official document for the bill of sales, they may consider a simple document with the main header named “bill of sales” as a bill of sales. That is why you must check the required conditions of your state and proceed in accordance with that. Since an official bill of sales does not need much guidance in its creation. Hence, we will guide you about writing a bill of sales from scratch, especially for the people of those states who do not have an official bill of the sales document. 
  • Write main header; The main header of the document must be written as a “bill of sales” so that it is officially considered as a legal document.  This is the first and foremost part while writing a bill of the sales document.
  • Write the name of the seller and his address; if you are the buyer and writing a bill of sales, then write down the name of the buyer at the top of the bill of the sales document. Include the address of the buyer as well since it is an official requirement. 
  • Write the buyer’s name and his address; both parties must mention their name and address on the bill of sales. Hence, same as you mentioned the name and address of the buyer, it is complimentary for you too, to mention your name and address. 
  • Description of the product; this is the most crucial part of a bill of sales document. This is the part over for which you are struggling and doing all this work. Here you need to mention the name of the product which is being sold/exchanged/mortgaged. Mention all the necessary information of that specific product, for example, the serial number of goods, unique product number, color, design, and all the relevant information that could be necessary in your regard. 
  • Special conditions if any; narrate the conditions of the product when it is sold or exchanged. These conditions can be like; the product warranty, discount price, or if it is sold as it is. Do not forget this part since it is one of the most important parts of a bill of sales document. 
  • Date of transaction; After mentioning the necessary product details, write about the date on which the sale is being made. Mention the time of contract as well for record purposes. Make sure to include the signatures of both parties between which the sale of the product is made. Do not get confused with the word “transaction”. Since the sales return can be monetary it can be an exchange of product as well. 
  • Product’s previous owner; Write the name of the previous owner of the product. either It is you, or it’s the other party. 
  • Product’s current owner; Since now the deal has been made between the parties, write down the name of the current owner of the product. 
  • What is the condition of the bill of sales? This section contains information about the actual sale. As you know that, a bill of sales may also be written for the exchange of products as well. So, you need to mention the return for which a product is being sold. This return could be monetary as well as some other product as well. If this bill of sales is being written over a mortgage product for some loan or other condition. Then you need to briefly explain all the conditions and terms of the sales in such a way that no necessary information is left out to mention.
  • Agreement terms and conditions (if any); As you know that a bill of sales is more of an agreement type of legal document. So, write about the conditions on which the sale is being made. These conditions maybe like the return of the product after a specific time or double the money if the product is not returned on the agreed date. These are just examples for your concern and better understanding.
  • End the bill of sales with signatures; at the end of a bill of sales document, you must have the signatures of both parties. These signatures will reflect the meaning that both parties are officially agreed on the terms and conditions mentioned on the legal document.
Multiple websites on the internet will offer you to get a ready-made bill of sale word template. You can get their aid in writing this official document if you are not in a condition to write it on your own. You can also download the bill of sale form from multiple websites as well as get a printable bill of sale.

Is bill of sale important?
A Bill of sales is a much important document that is complimentary to be written if a big purchase or exchange of a product is being made between two parties for record purposes. So, we highly recommend that you must write a bill of sales whenever you make a purchase. It is also necessary to avoid any confusions that could result from misunderstandings as well. 
Sometimes, if a purchase is big enough that some tax becomes applicable on it, then you may have to show it to the governmental authorities for record and confirmations. So, it is highly advised for you to write a generic bill of sales with the agreement of both parties.

Is a handwritten bill of sales legal?
Yes, as any legal document can be handwritten so a bill of sales may also be handwritten. But, in this advanced world, everything has become computerized and it is also easy as well, so we will recommend that you make a soft (computerized) bill of sales instead of getting it handwritten. Professionalism is always preferred over simplicity and ease, that is why a professional legal document will have much more influence.

Can a bill of sale expire?
No, a bill of sale is more of a recorded document than more of an agreement. Hence it cannot be canceled or expired. It is a document that will stay forever in the records of a buyer and seller. 

How binding is the bill of sales agreement?
A bill of sales a legal document that binds a buyer and seller over a product. since this document is officially signed by both parties on special terms and conditions that is why it is of much a lot of importance. Keep in mind that, both parties must sign the bill of sales otherwise it is not official until it is signed. 

Hence, a bill of sale can be shown up in the court if some issue or dispute occurs between two parties over some unlucky conditions. 

Is a purchase agreement the same as a bill of sale?
The purchase agreement is the actual contract that is signed by both parties before proceeding with the contract. While a bill of sales is written only after the work has been done and the actual ownership has been passed to the other person. That is why these two legal documents are completely different from each other and must not be considered the same. 

We conclude by saying that a bill of sales is a legal document that is written when ownership of a product changes from one party to the other. The return can be monetary as well as the exchange of some product too. Keep in mind that, a bill of sales and receipt are two different documents that must not be mixed up with each other. You can have a handwritten bill of sales as well, but it is professional to use a computerized document as a legal document. Bill of sales is of high significance and it can be presented as proof too when some dispute occurs between two parties. A bill of sales must be considered as more of a record instead of an agreement hence it cannot be canceled or terminated by any party. If you like this information, then share it with your friends as well. We are always up for suggestions and ideas. If you have any questions, then write them down in the comments section below. Head towards our main website to get some useful content and information. 

Check out several Bill of Sale templates here:

template preview imageVehicle Bill of Sale

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Generic Bill of Sale Template

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template preview imageBill Of Sale for Automobile

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How to create a Bill of Sale Automobile ? Download this Bill of Sale Automobile template now!

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How to write a Bill of Sale or Letter of Gift? Download this Printable Bill of Sale or Letter of Gift template now!

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How to create a Bill of Sale? Download this Printable Blank Bill of Sale template now!

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Florence Burns Florence Burns

Whatever the mind of man can conceive and believe, it can achieve. Thoughts are things! And powerful things at that, when mixed with definiteness of purpose, and burning desire, can be translated into riches. | Napoleon Hill