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Bill of sale

For selling a vehicle, a domain, equipment, or any used asset between two private parties.

1 documentsAbout 5 minutes7 questions to answer
What's in the pack
Bill of sale
Agreement, 1 page
01
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A handshake and a Venmo transfer is a deal. A bill of sale is the receipt that survives the buyer's regret, the seller's memory, and a DMV clerk who needs paper.

Who this pack is for

You're selling — or buying — a used vehicle, boat, trailer, motorcycle, business equipment, livestock, domain name, or any other tangible or intangible asset between two private parties. The transaction doesn't go through a dealer, marketplace, or escrow service. You want a written record that proves who owned what and who paid what, on what date, for tax reporting (sales tax, capital gains), DMV title transfer, insurance changes, or simply to settle later disagreements about what was sold and 'as-is' condition.

When to use it

Sign the bill of sale at the moment of payment and asset transfer — both parties present, both signing. For a vehicle, you'll need it for the DMV title transfer in most states (and the state may require a specific state-issued bill-of-sale form, in which case use this one as a backup). For high-value items ($500+), getting it notarized adds an extra layer of proof and is required in some states for vehicles. Sign two copies — one for each party. The bill of sale should be dated the day of payment, not earlier (no 'we agreed in principle three weeks ago'); pre-dating creates legal complications.

What it doesn't cover

This is a transfer document, not a warranty. The bill in this pack sells the asset 'as-is,' which means the buyer accepts the asset in its current condition with no recourse against the seller for defects discovered later (except for fraud or undisclosed liens). It does not cover real estate — those require a deed, not a bill of sale, and trigger title insurance, recording fees, and usually attorney involvement. It does not cover the sale of an entire business (which involves asset purchase agreements, non-competes, and employee transition planning). It does not handle stocks, securities, or cryptocurrency transfers — those have their own legal frameworks. And it does not by itself transfer DMV title for a vehicle; the state's title transfer form must also be filed.

State-specific notes

Rules vary by jurisdiction. Below are notes for the states where bill of sale runs into the most variance. If your state isn't listed, default to your state's tenant-rights handbook or local legal aid.

California (CA)
California does not require a notarized bill of sale for vehicles, but does require the title (pink slip) signed over by the seller and a smog certificate (most cases). The DMV's REG 135 'Bill of Sale' form is optional but accepted. Sales tax is collected by the DMV at title transfer based on the purchase price.
New York (NY)
New York vehicle sales require Form DTF-802 (Statement of Transaction) for sales tax, signed by both parties. The state also requires Form MV-82 for registration. Notarization not required for vehicles but recommended. Sales tax (typically 8–8.875% depending on county) is paid at registration based on purchase price.
Texas (TX)
Texas vehicle sales require Form 130-U, signed by both parties, plus the title properly assigned. Texas sales tax (6.25% state + local) is calculated on either the sale price or the standard presumptive value (whichever is higher) — the state will reject a bill of sale showing an artificially low price.
Florida (FL)
Florida requires the seller to sign over the title and the buyer to file Form HSMV 82040 within 30 days. Sales tax (6% + local) is paid at registration. Florida does not require notarization for the bill of sale itself but does require the title transfer to be notarized in some counties.

Common questions

Does 'as-is' actually protect the seller?
Mostly yes. 'As-is' disclaims implied warranties of merchantability and fitness, meaning the buyer accepts the asset's current condition. It does not protect against fraud (intentional misrepresentation), undisclosed liens, or violations of express warranties (anything the seller specifically promised). For a used car, 'as-is' means the buyer can't sue you because the transmission failed two weeks later — but if you knew about the transmission issue and hid it, that's fraud, and 'as-is' won't save you.
Should I notarize the bill of sale?
Notarization is required for vehicle sales in some states (Louisiana, Maryland, Montana, West Virginia, others) and for high-value items in many others. For everything else, notarization is optional but strongly recommended for transactions over $1,000. A notary's seal makes the document much harder to dispute later. Most banks and UPS Stores notarize for $5–$15.
What about sales tax — who pays?
Sales tax is generally the buyer's obligation, paid to the state at registration (for vehicles) or via the buyer's tax filing (for other purchases, depending on state). The seller does not collect sales tax in private-party transactions in most states; the state collects directly from the buyer. Some states' DMVs use the bill of sale to verify the purchase price for tax calculation; reporting an artificially low price to dodge tax is fraud.
What if the buyer pays in installments?
Use a promissory note or payment plan agreement instead of (or in addition to) a bill of sale. The bill of sale transfers title; the promissory note documents what's still owed. For vehicles, the seller usually keeps the title until paid in full and only signs it over at final payment — this is what dealerships do. Hand a buyer a signed title before payment is complete only if you're prepared to forgive the unpaid balance.
What if the buyer claims the asset is defective after the sale?
If you sold it 'as-is' and didn't misrepresent its condition, you're protected. If the buyer claims you knew about a hidden defect, the analysis becomes 'did you know and intentionally hide it.' For high-stakes transactions, take dated photos before sale, save the listing description, and keep any inspection reports. The bill of sale's 'as-is' clause plus that documentation makes a fraud claim very hard to win.
Can I sell something I don't fully own?
Not in most situations. The bill of sale's 'free and clear of liens' clause is a representation that you have the right to sell. If the asset is financed (car loan), you usually have to pay off the loan before transferring title — or the buyer pays the lender directly at closing and the lender releases the title. Selling a financed asset without disclosing the lien is fraud, and the lender can repossess from the new owner, leaving you and the buyer to fight it out.
Do I report this on my taxes?
If you sold for more than your basis (what you paid for it, adjusted for depreciation), you have a capital gain — reportable. Personal property sold below basis is generally a non-deductible loss (unlike stocks). Vehicles are almost always sold at a loss for individuals. Talk to a CPA for high-value items, equipment depreciation, or if you're a regular seller (which can convert capital gains into ordinary income).

Pike provides plain-language legal information, not legal advice. State and local rules change. If money, custody, or your housing is on the line, talk to a licensed attorney or your local legal aid office.