27+ Free Bill of Sale Templates [Word]

A bill of sale template is a legal document between a buyer and a seller for the purchase of something especially a vehicle or personal property. It states the transfer of ownership of the personal property and vehicles to someone else in exchange for cash or trade. Most states require it to register a vehicle.

How to create a bill of sale?

Let us discuss step-by-step how to create a bill of sale;

Step#1: Bill of sale statement:

  • Include the bill of sale date that when this paperwork is created.
  • County of sale
  • State of sale

Step#2: The parties:

  • Provide the full name of the buyer i.e. the individual who will arrange for and submit payment for the vehicle.
  • Mailing address of the buyer.
  • Then, write the name of the seller who is usually the owner of the vehicle.
  • Mailing address of the seller.
  • You may also like Template of Sales Invoice.

Step#3: The Exchange:

  • Cash payment: Here you have to indicate the method of payment by which the buyer will pay for the vehicle.
  • Trade-In payment: Sometimes the owner of the vehicle will agree to accept the buyer’s vehicle as a trade-in. For the Seller’s automobile, a buyer can trade in his or her vehicle as full payment.
  • Trade-In vehicle: A basic detail of the trade-in vehicle provided by the Buyer should be included like the name of the trade-in vehicle’s manufacturer, the model name of the trade-in vehicle, and its body type.
  • Determining the Trade-In:  After that, include a year when the buyer’s trade-in vehicle was manufactured, its body color, and the odometer reading. By inspecting vehicle’s exterior and interior, you can get this description.
  • Gift: Put a statement that the Seller is releasing ownership of the Vehicle to the Buyer as a gift. Also, write the amount of gifted vehicle.

Step#4: Vehicle Description:

  • Vehicle of sale: The primary purpose of this document is to include a reasonable description of the vehicle being sold. For this, include the following details;
  1. Mention the make model
  2. Body type of the vehicle
  3. Name of the vehicle’s manufacturer
  4. The product or model name of the vehicle
  5. Title
  6. The type of vehicle being sold
  • Vehicle’s additional information: Locate the year of the vehicle and the color of the vehicle. The odometer reading because it appears on the dashboard display at the time of sale.
  • VIN: Every vehicle has an identification number known as the vehicle identification number VIN; you should mention it in your bill of sale.

Step#5: Taxes:

  • Sales tax Status: The municipalities, counties, and States impose taxes on the transaction when a vehicle is sold. Some sellers include this in their purchase price. So, create two check boxes and state that sales taxes are included or not included in the purchase price.

Step#6: Authorization:

  • Affix the signature of the buyer and the exact date the buyer signs this document.
  • Also, place the buyer’s printed name.
  • In the end, affix the signature of the seller and his printed name.

Different types of bill of sale templates:

Below are the different types of bill of sale templates;

  • Car bill of sale template
  • Vehicle bill of sale template
  • Automobile bill of sale template
  • Boat bill of sale template
  • Trailer bill of sale template
  • Motorcycle bill of sale template
  • Equipment bill of sale template
  • You may also see Quote Template.


In conclusion, a bill of sale template is a very important document to avoid legal issues. To register a vehicle, it should be signed by the seller. It should contain all the above details. There is a huge collection of bill of sale templates that have all the basic mandatory requirements.