Bill of sale

What it means

A bill of sale documents a transfer. For vehicles some states require one and some do not; where it is not required, it is still the clearest evidence a sale happened.

It is not the same as a title. A title is the state's record of ownership; a bill of sale is the parties' record of the transaction.

For estate purposes it also evidences what an item sold for, which matters for the accounting.

Why it matters

Where an estate sells a vehicle or personal property, the bill of sale is what shows a beneficiary later that the sale was real and at what price.

It also protects the seller: it fixes the date after which parking tickets and liability are somebody else's.

When you are likely to meet it

• When an estate sells a vehicle.
• When a motor vehicle agency asks for one alongside the title.
• When personal property is sold and the proceeds have to be accounted for.

How this varies by state

Whether a bill of sale is required for a vehicle transfer, and whether it must be notarized, are set by state law.

Related terms

• Certificate of titleThe state-issued document that proves who owns a vehicle — and whose issuing state decides the procedure after a death.
• Estate accountingA statement of everything that came into the estate and everything that went out, presented before the estate can be closed.
• Fair market valueWhat a willing buyer would pay a willing seller, neither under pressure and both knowing the facts.
• Motor vehicle agencyThe state office that issues titles and registrations. It goes by a different name and a different set of initials in almost every state.
• Odometer disclosureA statement of a vehicle's mileage at the moment of transfer, required by federal law for most transfers.
• RetitlePutting an asset into a new owner's name on the official record.
• Salvage titleA title branded to record that a vehicle was declared a total loss. The brand stays with the vehicle permanently.
• Title jumpingSelling a vehicle on a title signed by somebody else without ever putting it in your own name. It is illegal everywhere.
• Vehicle transfer taxes and feesWhat a state charges to put a title into a new name — a title fee, a transfer fee, and sometimes a tax on the value of the vehicle.
• Vehicle identification numberThe unique code identifying a specific vehicle. Every title, registration and transfer form is matched against it.

Sahvelo guidance that uses this

• Vehicle title transfer
• Personal property