Bill of Sale is a document that details in writing a sale of goods or transfer of property from one party to another. It is a record of a sale, stating that an item was sold by a specific seller on a specific date, at a specific place, and for a specific amount of money or other valuable property. It serves as legal evidence that full consideration has been provided in a transaction and that the seller has transferred the rights to the assets detailed in the bill of sale to the buyer.
The document is commonly used to record the sale of aircraft, autos, motorcycles, and watercraft; however, it also can be used to record the sale of personal property, such as animals or furniture.
The bill of sale records all of the specific information regarding the transfer of the property including:
the item that was sold;
the seller's information;
the date of the transaction;
the location; and
the amount of compensation the buyer paid for the property.
A bill of sale with warranties means that you assure the buyer that the property is yours and that you have the right to transfer the property and will defend the buyer from other persons who may claim the property. A bill of sale wthout warranties means that you quitclaim the property and do not warrant title. A quitclaim is used in several situations, such as where the seller cannot prove ownership in the seller, or where the seller just does not want to warrant title to the property. This is similar to a quitclaim deed vs. a warranty deed.
“As-is” means that you do not guarantee the condition of the property or that the property is free from defect. Unless you add a provision to the bill of sale that you warrant the condition for a certain number of days, the transfer is generally without warranties. However, the "as-is" language clarifies that no written or verbal warranties were made to the buyer and is used to protect the seller.
The requirements of how the bill of sale must be signed is governed by State law and varies from State to State. Some States require that a bill of sale by witnessed, others require that it be notarized and some do not require witnessing or a notary. The forms provided comply with the laws of your State. This is one of the main reason many free forms are declared invalid.