Bill of Sale
This Bill of Sale made on ____________ (Date), by and between ______________ (“Seller”) and _______________________________ (“Buyer”).
Whereas the Seller wishes to sell and the Buyer wishes to buy the property, assets and undertaking described in Exhibit 1 attached (collectively the “Assets”) for the consideration and on the terms and conditions set forth below:
Therefore, this Bill of Sale witnesses that for good and valuable consideration now paid by the Buyer to the Seller at or before the execution and delivery of this Bill of Sale, the receipt and sufficiency of which is acknowledged, the Seller grants, bargains, sells, assigns, transfers, conveys and sets over to the Buyer the Assets, upon and subject to the following terms and conditions:
1. The Seller covenants, warrants and represents that:
(a) Seller has good and marketable title to the Assets, free and clear of any mortgage, charge, security interest, lien, claim, charge or other encumbrance of any nature or kind whatsoever;
(b) Seller has the authority to sell the Assets 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 Assets for its 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 for more effectually and completely vesting in the Buyer the Assets;
(e) Seller to 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. This Bill of Sale shall inure to the benefit of the successors and assigns of the Buyer.
____________________ ____________________
Seller BuyerDate: _______________
Exhibit 1: The Collective Assets Referenced in this Bill of Sale
Bill of Sale
Review ListThis review list is provided to inform you about the document in question and assist you in its preparation. Bills of Sale are often forgotten in many transactions that are very important to us such as the purchase of cars, boats, art work, and similarly expensive objects that you later need, or would prefer, to have clear title to. The Bill of Sale provides this audit trail. Make copies and have them available for signature when you buy or sell objects of significant value to you.
1. Make multiple copies with two for yourself and two for the other party. Keep one in your records pertaining to the subject matter and the other in your home safe.
Frequently Asked Questions
What is a bill of sale?
A bill of sale is a legal document that transfers ownership of property, assets, and undertaking from a seller to a buyer. It serves as evidence of the sale and outlines the terms and conditions of the transfer. The document typically includes details of the parties, the assets being sold, and the consideration paid.
What should be included in a bill of sale?
A bill of sale should include the date of the agreement, the names of the seller and buyer, a description of the assets being sold (often attached as an exhibit), and the consideration paid. It also contains warranties from the seller regarding title and authority to sell. The document should be signed by both parties to be effective.
What warranties does the seller make in a bill of sale?
The seller warrants that they have good and marketable title to the assets, free and clear of any liens or encumbrances. They also warrant that they have the authority to sell the assets to the buyer. Additionally, the seller warrants that the buyer will have quiet and peaceful possession of the assets after the sale.
Is a bill of sale legally binding?
Yes, a bill of sale is a legally binding contract when it meets the requirements of a valid contract, such as offer, acceptance, and consideration. It is enforceable in court and serves as proof of the transfer of ownership. However, it must be properly executed and may need to comply with specific legal requirements depending on the jurisdiction and the type of assets.
What does 'good and marketable title' mean in a bill of sale?
Good and marketable title means the seller owns the assets outright and there are no mortgages, liens, or other encumbrances on them. This ensures the buyer receives clear ownership without any third-party claims. The seller warrants this in the bill of sale to protect the buyer's interests.
What is the consideration in a bill of sale?
Consideration is something of value exchanged between the buyer and seller, typically money. It is the price paid for the assets being transferred. The bill of sale acknowledges receipt of consideration, making the contract legally binding.
Can a bill of sale be used for vehicles?
Yes, a bill of sale is commonly used for vehicles to transfer ownership from the seller to the buyer. It serves as proof of purchase and is often required for registration and titling purposes. The document should include the vehicle's details, such as make, model, year, and VIN.
What is the difference between a bill of sale and a receipt?
A bill of sale is a formal legal document that transfers ownership of assets and includes warranties and terms, while a receipt is simply proof of payment. A bill of sale provides more comprehensive protection for both parties. It serves as evidence of the transfer of title, whereas a receipt only acknowledges that payment was made.
Do I need a bill of sale for selling personal property?
While not always legally required, a bill of sale is highly recommended for selling personal property to document the transfer and protect both parties. It provides proof of ownership and can help resolve disputes. For high-value items, it is especially important to have a written bill of sale.
How do I fill out a bill of sale?
To fill out a bill of sale, enter the date, the full names and addresses of the seller and buyer, and a detailed description of the assets being sold. Specify the consideration paid and include any warranties or conditions. Both parties should sign and date the document, and each should keep a copy.
