How to Create a Bill of Sale

Property Being Sold

Begin by specifying the exact property being sold. With LegalNature’s form builder, you can create a bill of sale for the sale of virtually any type of good. Be sure to be as detailed as possible in identifying which goods are being sold.

Party Information

Next, include the party names and addresses. If a party is an individual and not a business, then enter that party’s full legal name.

Payment Details

Here you specify the total purchase price as well as whether or not there are any encumbrances on the goods. An encumbrance is any type of:

• lien,
• loan,
• other restriction on the title to the goods, or
• the seller’s right to sell the goods to the buyer.

For example, the seller may still be paying off a loan secured by the goods. This would mean that the seller has to pay off the loan before selling to the buyer unless the buyer agrees to assume the seller’s responsibility to pay off the rest of the loan.

Most goods are unencumbered, but if they are encumbered, it is important to note this in the bill of sale as well as which party will be responsible for paying off the encumbrance. This will ensure that either the seller gives the buyer clear title or that the buyer understands it is assuming liability on any encumbrances that remain after delivery of the goods.