What is a Bill of Sale?

A Bill of Sale is a written document that confirms that a seller has transferred ownership of property to a buyer. It’s most often used for selling vehicles, but can also apply to equipment, animals, and other valuable items. 

Use a Bill of Sale form when you transfer ownership of personal property and want proof of the transaction. It acts like a receipt for valuable items sold “as is.” If you need to include warranties or payment terms before the purchase, use a Sales Agreement instead. 

A Bill of Sale may also be known as a proof of purchase or sales receipt.

Our Bill of Sale template is suitable for all Canadian provinces and territories.

When can I use a Bill of Sale?

You can use a Bill of Sale when buying or selling items of value, or shortly after, to document the exchange of goods much as you would use a receipt or proof of purchase.

If you need particular conditions documented and set in writing before a purchase, such as warranties, inspection rights, or detailed payment terms, a Sales Agreement may be the more appropriate option. 

Our Bill of Sale template can be customized for use cases across multiple kinds of personal property, like:

• Motor vehicles, such as cars, trucks, and motorcycles

• Travel vehicles, such as trailers, motorhomes, RVs, and campervans

• Boats and other water vehicles, such as jet skis

• Off-road vehicles, such as bicycles, dirt bikes, golf carts, and snowmobiles

• Equipment, such as tractors, tools, appliances, and exercise equipment

• Animals, such as horses, cats, and dogs

• Personal property, such as clothing and jewelry

• Electronics, such as phones or computers

Remember that you cannot use a Bill of Sale to buy or sell real estate. Instead, you may use a Real Estate Purchase Agreement to outline transactions for homes or land.

Additionally, you cannot use a Bill of Sale to document the sale of a business or company shares. Instead, use aPurchase of Business Agreement or a Share Purchase Agreement.

Bill of Sale vs Sales Agreements 

A Bill of Sale and a Sales Agreement work together in many transactions, but apply at different stages of the sales process. 

When the transaction occurs, and you want to keep a record of the exchange for proof that the item was sold and accepted “as-is,” consider a Bill of Sale. 

ASales Agreement is used for complex transactions where more details about the sale are required before the transaction occurs, such as warranties for the item. A Sales Agreement can also cover any services related to the item, such as installation fees. 

If services are the only thing being paid for, use aService Agreement instead.

Purpose of a Bill of Sale

A Bill of Sale protects the seller's and buyer's interests and can prevent future disputes. For example, an enforceable Bill of Sale:

• Documents the transaction: A Bill of Sale shows that a transaction occurred on a specific date, proving that both parties intended a transfer of ownership as evidence of the transaction.

• Establishes as-is condition: A Bill of Sale proves that an item was sold as seen, with the buyer accepting the item’s condition. 

• Records payment terms: A Bill of Sale establishes the agreed-upon sales price and payment terms between the buyer and seller.

• Satisfies legal requirements: A Bill of Sale is required in certain provinces and territories, such as Alberta, when buying and selling certain items, including vehicles and trailers.

How to create a Bill of Sale

We make creating a Bill of Sale seamless with the following steps:

1. Describe the item

Provide the property's details. For example, if you are selling a used vehicle, you will need the following information:

• Location

• Make

• Year

• Model

• Body type

• Vehicle identification number (VIN)

• Whether the item is a gift

• Odometer reading, accuracy, and whether it’s been replaced or repaired

The details you provide will depend on the item type (i.e., if you’re selling a horse, you’ll specify the breed, sex, age, and colour, plus any distinctive features.)

2. Provide each party's information

List the names and addresses of both the seller and the buyer. If necessary, you can add more than one seller or buyer to your Bill of Sale.

3. Outline payment details

State the item's sale price and specify if sales tax will apply to the sale. Also, include the payment method. Common payment methods that you can use in a Bill of Sale include:

• Cash

• Bank drafts

• Cheques

• Electronic transfers

• Other payment methods (e.g. money orders, etc.)

4. Note any loans or liens

If there are any loans or liens on the item, be sure to note them and describe the repayment arrangements. Mainly, you need to specify whether the buyer or seller will pay off the loans.

If a loan or lien is going to pass to the buyer, the seller should reduce the purchase price by the corresponding amount.

3. Additional clauses

You may add up to four additional clauses to your Bill of Sale. For example, details about any accessories a vehicle may come with, such as tires or rims.

4. Sign your Bill of Sale 

Specify the date you plan to sign your Bill of Sale, and note whether any witnesses will be present at the signing.

Although witnessing or notarization isn’t legally required to make your Bill of Sale valid, having the document notarized can add an extra layer of verification.

You can sign your Bill of Sale electronically through LawDepot's eSign service, which keeps the process simple, convenient, and fully digital. 

If you prefer a notarized document, NotaryPro allows you to sign and notarize your document online without an in‑person appointment. 

Online notarization of a Bill of Sale is typically permissible, but you should confirm with your local registry office that they accept online notarization when the transaction involves a motor vehicle or other registrable property.