Legal Definitions - bill of sale

A bill of sale is a written document that confirms the purchase of property from a seller by a buyer. It is similar to a receipt and includes information about the transacting parties, a description of the item sold, warranties made by the seller, conditions attached to the sale, date of transfer, price, payment schedule, and signatures of both parties.

• When you buy a car from a private seller, they will give you a bill of sale that shows you are now the owner of the car.
• If you sell your boat to someone, you will need to provide them with a bill of sale that includes the details of the transaction.

The examples illustrate how a bill of sale is used to document the transfer of ownership of property from one person to another. It is a legal document that protects both the buyer and seller by providing a record of the transaction.

There are two main types of bills of sale:

• An absolute bill of sale is used for the sale of goods and completely conveys property without any restrictions or scheduled payments. It is ideal for transactions that involve payment in full and items sold in "as is" condition.
• A conditional bill of sale is used for borrowing and financing and conveys property with conditions on the buyer's ownership. It is most appropriate for transactions involving loans, like the purchase of a house.

The types of bills of sale illustrate how they can be used in different situations, depending on the nature of the transaction.