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Bill of Sale

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Bill of Sale of Motor Vehicle - With Encumbrances

State of

County of

For and in consideration of $ , and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the undersigned Seller does hereby grant, bargain and sell to (Name of Buyer), the Buyer, the following described Motor Vehicle (automobile):

 Make

 Model

 Year

 VIN

 Color

1. Seller covenants, warrants and represents that:

A. Seller has good and marketable title to the Motor Vehicle, free and clear of any mortgage, charge, security interest, lien, claim, charge or other encumbrance of any nature or kind whatsoever, save and except the encumbrance referred to in Paragraph 2 below;

B. Seller has the authority to sell the Motor Vehicle to the Buyer;

C. Buyer shall, immediately after execution and delivery of this Bill of Sale, have quiet and peaceful possession and enjoyment of the Motor Vehicle for his own use and benefit without any manner of hindrance, interruption, molestation, claim or demand whatsoever of, from or by the Seller or any person;

D. Seller will, from time to time and at all times hereafter, on every reasonable request of the Buyer, make, do and execute or cause to be made, done and executed all further acts, deeds or assurances as may be reasonably required by the Buyer to more effectually and complete vesting title to the Motor Vehicle in the Buyer, including but not limited transferring to Buyer the certificate of title to the Motor Vehicle and making such filings and registrations with governmental authorities as are necessary or desirable to transfer ownership of the Motor Vehicle to the Buyer; and

E. Seller will indemnify and save harmless the Buyer from all costs, damages, expenses and other losses resulting or arising from the breach or untruth of any covenant, warranty or representation made or given by the Seller hereunder.

2. Buyer agrees to assume the existing indebtedness of the Seller to (Name of Person to having an encumbrance on the Motor Vehicle) which indebtedness is in the amount of $ as of the date hereof and acknowledges that such debt is secured by an encumbrance over the Motor Vehicle, which shall remain over the Motor Vehicle until such indebtedness is repaid in full. Buyer covenants to repay such indebtedness in accordance with its terms, and to otherwise do and perform all of the obligations of the Seller pursuant to said indebtedness.

Witness our signatures this (date).

(Acknowledgment may vary by state)

Seller Acknowledgment

State of

County of

Personally appeared before me, the undersigned authority in and for the said County and State, on this (date), within my jurisdiction, the within-named (Name of Seller), who acknowledged that he executed the above and foregoing instrument.

My Commission Expires:

Buyer Acknowledgment

State of

County of

Personally appeared before me, the undersigned authority in and for the said County and State, on this (date), within my jurisdiction, the within-named (Name of Buyer), who acknowledged that he executed the above and foregoing instrument.

My Commission Expires:

Enter text✕

What a Bill of Sale Is and When it Matters

A Bill of Sale is a written record documenting the transfer of ownership of tangible property or certain goods from a seller to a buyer. It typically identifies the parties, describes the item being sold, states the sale price or consideration, and records the effective date of transfer. For vehicles, boats, equipment, and business assets, a Bill of Sale supports title transfer, tax reporting, and proof of change in ownership. While not always required by law, the form reduces disputes by establishing clear terms of the sale and supporting subsequent filings with government agencies or lenders.

Why a Clear Bill of Sale Protects Both Parties

A Bill of Sale creates a contemporaneous record of the transaction that helps prevent ownership disputes and documents consideration.

Why a Clear Bill of Sale Protects Both Parties

Who Commonly Prepares and Signs a Bill of Sale

Bills of Sale are used by individuals and businesses transferring tangible goods, vehicles, or equipment.

  • Private sellers and buyers of vehicles or vessels — confirm title and DMV requirements.
  • Dealers and brokers transferring inventory or used equipment — track consideration and disclosures.
  • Small businesses selling assets during acquisitions or disposals — document dates, amounts, and warranties.

Use a tailored Bill of Sale when ownership, tax reporting, or title documentation must be clear and reproducible.

Core Elements to Include in a Professional Bill of Sale

A complete Bill of Sale contains identification, an accurate description of the item, consideration, representations, transfer language, and signature blocks for all parties.

Parties

Full legal names and addresses for buyer and seller, including business entity type and state of formation when applicable.

Item Description

Make, model, serial/VIN number, year, odometer reading (for vehicles), and any distinguishing marks or accessories included in the sale.

Consideration

Exact dollar amount or other agreed consideration, payment method, and whether sale is cash, check, wire, or trade.

Condition & Warranties

Statement of condition (for example, "sold as-is"), any express warranties, and whether the seller discloses known defects.

Transfer Language

Clear clause transferring ownership and title interest from seller to buyer effective on the stated date or upon payment.

Signatures

Signature and printed name for each party, date signed, and space for notarization or witness information when required.

Step-by-Step: Completing a Bill of Sale

Follow these steps to create a clear, enforceable Bill of Sale and prepare for any government filings.

  • 01
    1. Gather details: Collect IDs, VIN/serial numbers, title documents, and full names for all parties.
  • 02
    2. Describe the item: Record make, model, year, VIN/serial, and current condition or odometer reading.
  • 03
    3. State consideration: Enter the exact sale price, payment terms, and whether funds cleared before signing.
  • 04
    4. Sign and notarize: Have parties sign, date, and obtain notarization or witnesses if required by state or DMV.

Typical Workflow for Creating and Delivering a Bill of Sale

A clear process reduces friction: prepare the form, collect signatures, and deliver copies to required parties and agencies.

  • Prepare Document: Draft with complete fields, include exhibits like receipts or title assignments.
  • Sign: Obtain signatures from seller and buyer; notarize if state or DMV requires.
  • Deliver Copies: Provide copies to buyer, seller, lender, and any filing agency as needed.
  • Retain Records: Keep originals for retention period and supply digital copies to tax preparers if needed.

Configuring an Efficient Digital Bill of Sale Workflow

Use a consistent digital workflow to speed completion, reduce errors, and capture audit information.

Field Configuration
Seller Name Required text field with identity validation prompt
Buyer Name Required text field; conditional fields for business entity
VIN / Serial Structured field with character limit; validation for correct length
Signature Signer-attached signature field with timestamp and audit trail

Delivery and eSignature Options for Bills of Sale

Electronic signing and secure delivery simplify execution and recordkeeping.

  • Email Delivery: Simple and widely accepted
  • Signing Link: Good for guest signers
  • Remote Notarization: Available in many states

eSignature Vendor Comparison for Signing a Bill of Sale

Compare basic pricing and compliance features when selecting an eSignature provider for Bill of Sale workflows; signNow is listed first per platform comparison convention.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and Compliance Considerations for Electronic Bills of Sale

Encryption: TLS 1.2/1.3 and AES-256
Audit Trail: Timestamped signing history
Access Controls: Role-based permissions
HIPAA Support: BAA available
21 CFR Part 11: Supported on appropriate plans
SOC 2: Report available on request

Risks and Consequences of an Inaccurate Bill of Sale

Title Problems: Delayed or rejected DMV transfers
Tax Exposure: Incorrect basis or reporting issues
Liability: Buyer may face undisclosed defect claims
Forgery Risk: Unsigned or unauthenticated forms are challengeable
Enforceability: Missing signatures can void the transfer
Penalties: State fines or administrative fees possible

Common Errors to Avoid When Preparing a Bill of Sale

  • Using informal or incomplete descriptions that omit VIN or serial numbers and create ambiguity in ownership.
  • Failing to record the exact consideration or relying solely on verbal payment terms without written confirmation.
  • Not verifying the seller has clear title, leading to hidden liens or encumbrances after the sale.
  • Skipping notarization or witness requirements where state law or the receiving agency requires them, causing delays.

Frequently Asked Questions About Bills of Sale

Answers to common questions about legal validity, notarization, title transfer, and using electronic signatures for Bills of Sale.


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