A bill of sale is a legal document that records the transfer of ownership of personal property (not real estate) from a seller to a buyer. It shows that the seller has given the item to the buyer in exchange for payment or another agreed-upon value. Remember that personal property cannot be real estate.
A bill of sale is basically receipt with legal significance. It typically describes the item being sold (such as a vehicle, equipment, or furniture), identifies the buyer and seller, states the purchase price, and includes the date of transfer. Bills of sale are commonly used for cars, boats, and business equipment, and they help protect both parties by providing written proof that ownership has changed hands.
