Bill of Sale
Definition and meaning of Bill of Sale in real estate.
A bill of sale is a legal document that transfers ownership of personal property from a seller to a buyer, serving as written evidence of the transaction.
In more detail
In real estate transactions, a bill of sale is used alongside the deed to transfer ownership of items that are not permanently attached to the real property. While the deed transfers ownership of the land and buildings, the bill of sale transfers personal property, also known as chattels, such as free-standing appliances, furniture, or lawn equipment.
This document protects both parties by confirming the transfer of ownership, documenting the sale price, and stating that the items are free of liens. Lenders often require a copy of the bill of sale to ensure that personal property is not improperly financed as part of the home loan.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Applies to | Personal property, furniture, appliances, and mobile homes not attached to land |
| Required by | Buyers and sellers to prove ownership transfer of non-real estate items |
| Key information included | Descriptions of the items, sale price, signatures, and date of transfer |
During a home purchase, the buyer agrees to buy the seller's ride-on lawnmower, and both parties sign a bill of sale to document the transfer of the mower.
Frequently asked questions
What is the difference between a deed and a bill of sale?
A deed transfers ownership of real property, such as land and structures, while a bill of sale transfers ownership of personal property, such as furniture and loose appliances.
Can a bill of sale be used to buy a house?
No, real estate must be transferred using a deed. A bill of sale is only used for the personal property items included inside or around the house.
Does a bill of sale need to be notarized?
Notarization requirements vary by state and local laws, but notarizing a bill of sale is recommended to prevent future disputes over ownership.
Related terms
Sources & references
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