Bill of Sale for Personal Property Instructions
First Paragraph: Enter the date of the sale, enter it as the day, then the month and then the year. For example, 5th day of May, 2023.
Next enter the Buyer’s name and the address of the Buyer after the words “residing at.” Next, do the same for the Seller’s name and address. Make sure to use the Buyer’s and Seller’s full legal name. If the Buyer or Seller is a corporation, use the incorporated name of the company.
Section I –Personal Property Details: Enter a description of the personal property that you are selling. The personal property can be items such as: bicycle, jewelry, tablecloths, furnishings, appliances, etc.…, but not real property. It is best to describe the item in as much detail as possible. For jewelry include carat amount and if any certificates are available. If the item has a serial number include that, as well as a model number if available.
Section II – Purchase Price: Enter the Purchase Price of the item. Then state how the buyer will pay the Purchase Price to the Seller. Examples may include: internet banking, check, cash, money order, Venmo etc.….
If you are transferring the item as a gift to someone, then enter a nominal amount for the purchase price such as $1.00 or $10.00.
Section III – Seller’s Representations: If there is a loan or lien of some sort on the Item you should identify it in subsection ii. Enter the amount of the lien and who it is held by and then state whether or not the Seller will pay the lien at the time of the sale. For example, except for a $300 lien held by Morton Stanley that the Seller will pay at the time of the transfer or another example as to when the Buyer may assume the lien: except for a $5,500 lien held by Abe Fleishman that the Buyer will assume and pay and will hold harmless and indemnify the Seller from any claim related herein.
You can transfer some liens or loans to the Buyers, however some types of loans-like a bank loan is not typically transferable. If a loan or a lien is passed on to the Buyer, usually the purchase price is reduced by the amount of the lien or loan.
Section VII – Delivery of the Item: Here the details of the delivery of the item are identified. Enter the location (address), date and approximate time which ownership of the item will be transferred.
Section IX – Additional Terms: Here you may enter any additional information or clauses, though most times no additional terms are needed. In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length. Also, use any predefined terms such as Seller, Buyer, etc. in your clauses.
Section X – Governing Law: Enter your state here. You should pick the state where the item you are selling is located, which is usually where the Seller is located.
Signature Section: Here the Seller and Buyer must sign and enter their phone numbers.
Notary Acknowledgment: In the following states: Louisiana, Maryland, Montana, Nebraska, New Hampshire and West Virginia a Bill of Sale to transfer title MUST BE notarized. If no title is being transferred, as is the case with most items of personal property then no notarization is required. Other states do not require notarization, but it may be a good idea to do notarize the Bill of Sale in case the parties ever end up suing one another regarding the sale.
If you do not live in the above-named states and do not want to Notarize the Bill of Sale, remove the notarization page.
**It is important to note if you are taking title to an item from another state than where you reside it is a good idea to have your Bill of Sale notarized.