What Is a Bill of Sale? [ How to Fill, Benefits, Components, Purpose ]

A bill of sale is a type of sales document that is used as a means of proving who the purchaser or the receiver is in regards to the purchase of a certain object or material. The function of both a receipt and a bill of sale is somewhat similar but the purpose is something else entirely. To write a bill of sale, you will need to be able to understand the format of the said document as well as what it should contain.

Every company needs bill of sales forms to identify the receiver or the purchaser of the companies goods or services as well as provide means of communicating and confronting the purchaser with any issues that may occur later on. The bill of sales is commonly used by companies who would like to ensure that the products their customers are buying is not used for any purpose aside from its intended use.

How to Fill Out a Bill of Sale

Filling out a General Bill of Sale Form will require minimal effort, but will require you to input information that is up to date from the receiver and some specific information from the sender or giver of the bill of sale. The information that must be inputted are:

• If you’re using a sample bill of sale form, then you will just need to fill in the necessary fields.
• A unique identification number for each bill of sale must be made so as to specify and identify the individual owners of a product.
• A full physical description of the product must be included.
• Then begin indicating the details of the parties involved in the transaction.
• Indicate the transaction date.
• Specify the cost and the nature of the transaction.
• Have both parties sign the bill of sales.

What Are the Benefits of a Bill of Sale?

The primary benefits of using a bill of sales in any transaction is that it will serve as a proof that the product was indeed purchased by a certain individual. It also serves as a method of identifying the individual who has purchased the said product which will prove invaluable when it comes to proving a person’s claim on the product.

A blank bill of sale form, or a bill of sale form template is used by most companies as a method of creating their own unique bill of sales. In some companies, a bill of sale can be used as a warranty for the product as well.

What Are the Components of a Bill of Sale?

A bill of sale as of all documents that are used in transactions that involve the transfer of ownership of a certain piece of property to another person has certain requirements to be added to the actual bill of sale. These components being:

• The complete name and details of the seller and the property to be sold.
• The complete information of the purchaser.
• Specific or accurate information about the current status of the object or property being sold.
• A formal statement indicating that the seller is willing to relinquish all rights and claims they may have on the property to the buyer.
• Signatures of both the seller and the buyer affixed to the bill of sale.

What is the Purpose of a Bill of Sale?

A bill of sale has one main purpose, and that is to authorize the transfer of all rights and claims of ownership of a certain piece of property to another individual by either the means of selling or giving to the receiver or buyer.

The most common example of a bill of sale form would be the Vehicle Bill of Sale Forms where the seller will transfer ownership of the vehicle to the buyer. When the transaction cannot be done in person, a bill of sale form in PDF will usually be submitted to the buyer so as to allow them to review the said bill of sale.