A Manual for Bill of Sale

Bill of sale


Buying and selling of automobiles have never been easy. Selecting a suitable and most perfect car might take more time than you can think. Satisfaction is always the key. Once you completed the search and done with the selection of a suitable vehicle, do you think that's all? No, you are wrong.

A lengthy legal process is waiting for you to confirm that the two parties have actually completed this buying and sale process. But what's the proof that this actually happened?

For this particular reason, a method of documentation is maintained which includes all the necessary requirements needed for completing the contract between the two. This document is known as the BILL OF SALE. 

Bill of sale is actually a legal proof that the transaction is actually being done. It highlights the transfer of ownership from one person to the other.

The following passage will discuss some of the key features in order to complete the process of the bill of sale. Vehicle receipt is actually the basic bill of sale that holds the proof of the business done between the two.

Basic Things Initially Required

1- Name and address of the seller

2- Name and address of the buyer

3- Date of the agreement

4- Detailed location of the place where the agreement is being done

5- Agreed Price

6- Payment method

7- Description of the vehicle ( Model, Year of manufacturing, color, design, body type )

8- Previous Owner (If any)

9- Terms of Sale

10- Signatures

These are quite some of the most basic things which are required for every such agreement. Some important instructions must also be kept in mind while making a bill of sale for any buy/sale agreement. These are listed below and discussed in detail.

Things to Remember

1- Writing the correct names and properly detailed addresses of both the parties is really important. The name if written wrongly even by a mistake, it can cause problems of one or more parties. The name is the first proof that this person is part of the deal.

2- One suggestion is that always try to bring a third person into the agreement who might be a mutual friend of both or any other trustworthy person. This will help in the future in case of any misunderstandings or problems. This person himself will be proof of the agreement between the two. It is not compulsory but still highly appreciated.

3- The payment process is off course the most important part of this bill. This requires the utmost attention. The method of payment must be decided. If the cash is to be delivered at that exact time then transaction copies with a “paid” stamp must be given to both groups.

4- If the payment is to be provided after some time, then the dates should be properly mentioned with signatures from both.

5- It is recommended that the details of the previous owner must also be included in the bill as a part of the record.

6- Proofreading the document of the bill of sale must be done by both the buyer and the seller.

7- If you are a seller and have successfully completed the sale then you should immediately inform the concerned department about this transaction. This shall be helpful in case of an accident or any other mishap during the time of retitling of the car.

8- The legal bill of sale must be authorized by the concerned authorities.

9- A complete description of the vehicle must be entitled to this bill of sale. It might include the following:

        • Model

        • Manufacturers

        • Color

        • Design

        • Vehicle identification number

Are Sales Contract and Bill of Sale The Same Things?

If we have to decide by mere looking at the names of these two terms we might end up ranking them as similar things. Although these two are similar to some extent as both these types act as documentation proof during buying and selling of some product.

But the difference lies in the time of delivery that is being sold.

A sales contract comes into place when the sale is to be done in the future. The delivery could be done right after signing the sales contract but still, it will not be called a bill of sale. For example, the car bill of sale is mostly being documented once the buying and selling are complete.

The sales contract is documented before the purchase and sale while the bill of sale is always documented after the purchase is done.


Although this documentation is being done by the professionals under the supervision of both groups still one must have basic knowledge and requirements about how a bill of sale is written and what are the important things needed for this process.

And if you are a new driver and looking for a vehicle for a very first time, then before going to but something and have a bill of sale you must visit Easy Drivings Tests at least once in order to test yourself as far as your driving skills are concerned.

Share this post


Your Car's VIN Explained in Detail
Your Car's VIN Explained in Detail

Posted on 06 05, 2021

What Are the 5 Best-Kept Secrets On Cutting Back Gas Costs?
What Are the 5 Best-Kept Secrets On Cutting Back Gas Costs?

Posted on 05 17, 2021

How Do Automated Car Washes Work?
How Do Automated Car Washes Work?

Posted on 04 20, 2021

10 Car Care and Maintenance Tips To Minimize Car Shop Visits
10 Car Care and Maintenance Tips To Minimize Car Shop Visits

Posted on 03 09, 2021

How to Prep a Car for Paint: Best Auto Painting Tips
How to Prep a Car for Paint: Best Auto Painting Tips

Posted on 10 31, 2019