What is a Bill of Sale?
A bill of sale is a document issued by the seller/assignor of an asset, personal property or real estate to the purchaser as legal evidence that the purchaser/assignee has paid the full consideration for the title. A bill of sale operates as a receipt or proof of title of ownership of an asset, goods, personal property or even a house/real estate.
A bill of sale can also be defined as a legal instrument that conveys or transfers the proprietary interests of the owner/seller in a property to the buyer.
A bill of sale is issued after a transaction to purchase real estate property. It can be tendered to a subsequent buyer or in the court as proof of transfer of title. It may also be tendered by way of security for mortgage transactions.
Contents of the bill of sale usually include, but are not limited to:
• Identity and addresses of the seller and buyer
• Date of issuance
• Description of the assets or property
• Amount paid or consideration provided for the transfer of title
• Guarantees by the seller
• Representations or warranties/further assurances
• Signatures or seal of the seller and buyer
• Seal or signature of a Notary Public
Requirements for a valid bill of sale vary from state to state. Some states require notarization of a bill of sale while some states do not require this. Upon execution, the terms and conditions in the bill of sale become conclusive proof of transfer and are binding on both parties.