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Bill of Sale

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Frequently Asked Questions
Does the buyer have to sign?While some jurisdictions may not require a Bill of Sale to be signed by the buyer in some circumstances, it is usually required to provide proof that the buyer acknowledges the transfer of ownership of the property being sold. If you are unsure as to your jurisdiction's requirements, then it is best to have the buyer sign the Bill of Sale to ensure the sale is valid.Must we sign in front of witnesses?Most jurisdictions do not require that a Bill of Sale contain witness signatures, but having at least one objective witness when the Bill of Sale is signed is better evidence that the parties entered into the Bill of Sale if the matter goes to litigation. Having at least one witness is a good idea especially if the parties are individuals (not corporations) and you are not signing in front of a notary public.Do we need to sign in front of a notary public?A notary public is a provincially appointed official who is authorized to authenticate certain legal documents, such as declarations, affidavits, acknowledgments, deeds, mortgages, and other contracts. Most attorneys are a notary public for their local jurisdiction.

Signing a Bill of Sale in front of a notary public is only required in a few very specific situations. But many banks and other institutions have their own policies about signing requirements. You may need to check the requirements for your situation.
When should I deliver the Bill of Sale to the buyer?You should not deliver the Bill of Sale to the buyer until you have received full payment of the purchase price from the buyer. Full payment could include the provision of a promissory note for the outstanding balance owed. They can be the same jurisdiction, but do not necessarily have to be. The jurisdiction for signing refers to the location where the seller or buyer will sign the Bill of Sale.


Your Bill of Sale

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Motor Vehicle Bill of Sale

IN CONSIDERATION of ___________________ of ____________________ (the 'Purchaser') providing $____________  CAD (the "Purchase Price"), the receipt and sufficiency of which consideration is hereby acknowledged to ______________________ of ____________________ (the 'Seller'), the Seller SELLS AND DELIVERS the Motor Vehicle to the Purchaser.

PAYMENT METHOD: The Purchaser will pay the Purchase Price to the Seller by cash.

MOTOR VEHICLE: The Seller will sell and deliver to the Purchaser the following motor vehicle (the 'Motor Vehicle'):

  • Make: ________________________
  • Model: __________
  • Year: __________
  • Body Type: __________
  • Vehicle Identification Number (VIN): ________________________
  • Odometer Reading: __________ kilometres

WARRANTIES: The Seller warrants that the Motor Vehicle is free of any liens and encumbrances and that the Seller is the legal owner of the Motor Vehicle. The Seller also warrants that the Seller has the full right and authority to sell and deliver the Motor Vehicle and that the Seller will defend the title of the Motor Vehicle against any and all claims and demands.

'AS IS' CONDITION: The Purchaser acknowledges that the Motor Vehicle is sold 'as is'. The Seller expressly disclaims any implied warranty as to fitness for a particular purpose and any implied warranty as to merchantability. The Seller expressly disclaims any expressed or other implied warranties.

WORKING ORDER: Any warranty as to the condition or working order of the Motor Vehicle is expressly disclaimed by the Seller.

MANUFACTURER'S WARRANTY: Any disclaimer of warranties by the Seller in this Bill of Sale will not in any way affect the terms of any applicable warranties from the manufacturer of the Motor Vehicle.

LIABILITIES: The Seller does not assume, nor does the Seller authorize any other person on the behalf of the Seller to assume, any liability in connection with the sale or delivery of the Motor Vehicle.

INSPECTION: The Purchaser accepts the Motor Vehicle in its existing condition given that the Purchaser has either inspected the Motor Vehicle or was given the opportunity to inspect the Motor Vehicle but chose to not inspect it.

GOVERNING LAW: This Bill of Sale will be construed in accordance with and governed by the laws of the Province of Alberta.

SIGNED, SEALED, AND DELIVERED
this ________ day of ________________, ________ in the presence of:

   



_____________________________
______________________
(Seller)



_____________________________
___________________
(Purchaser)

     


Most legal jurisdictions require that the Seller state the Mileage upon transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

Odometer Disclosure Statement

I, ______________________ of ____________________ (the 'Seller'), STATE AND DECLARE that the odometer of the following vehicle (the 'Motor Vehicle') reads as follows:

  • Make: ________________________
  • Model: __________
  • Year: __________
  • Body Type: __________
  • Vehicle Identification Number (VIN): ________________________
  • Current Odometer Reading: __________ kilometres

I CERTIFY that to the best of my knowledge the odometer reading as stated above reflects the actual mileage of the Motor Vehicle. I CERTIFY that the odometer of the Motor Vehicle was not altered, set back, or disconnected while in my possession, and I have no knowledge of anyone else doing so.

SIGNED, SEALED, AND DELIVERED
this ________ day of ________________, ________ in the presence of:

   

___________________________
Seller: ______________________
Address: ____________________

     


Receipt of original copy
is hereby acknowledged by
___________________.

   

___________________________
Purchaser: ___________________
Address: ____________________

     

What is a Bill of Sale?

A Bill of Sale records a transaction and transfers ownership of an item from a seller to a buyer. Even though people mostly use Bills of Sale for selling used cars, they are suitable for many different assets, including trailers, boats, animals, and more.

Bills of Sale are suitable for transactions where a buyer pays in full and accepts an item as is, also known as ‘sold as seen.’ If you need a contract that allows you to include warranties or outline a payment plan, a Sales Agreement may be a better option.

A Bill of Sale is also known as a:

  • Proof of purchase
  • Sales receipt

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

Looking for a Bill of Sale in French?

Use our Acte de Vente.

What is an "as is" Bill of Sale?

"As is" means that an item is sold in its current condition, meaning the buyer accepts the item with all its flaws. Therefore, a Bill of Sale with an as-is clause doesn’t include any warranties. The seller isn't liable for any item flaws, provided they haven't hidden or lied about them.

Therefore, a Bill of Sale protects the seller from having to provide a refund for any item-related issues after the buyer pays and receives the item. Our Bill of Sale template automatically includes an "as is" clause.

When should I use a Bill of Sale?

Anyone buying or selling items of value should use a Bill of Sale. Our Bill of Sale template can be customized for different types of personal-use property, such as:

  • 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 jewellery
  • 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 a Purchase of Business Agreement or Share Purchase Agreement.

Purpose of a Bill of Sale

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

  • Documents the transaction: A Bill of Sale shows that a transaction took place on a specific date, proving that both parties wanted a transfer of ownership.
  • Creates a paper trail: Without a written Bill of Sale, you may not have 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: Using a Bill of Sale is required when buying and selling certain items, such as vehicles and trailers. In Canada, you can’t register a motor vehicle with a properly executed Bill of Sale.

How to create a Bill of Sale

To create a Bill of Sale using our template, complete the following steps:

1. Describe the item

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

  • Make
  • Year
  • Model
  • Body type
  • Vehicle identification number (VIN)
  • Odometer reading

The item details you provide will depend on the item type. 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 name 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 form of payment. Common payment methods that you can use in a Bill of Sale include:

  • Cash
  • Bank drafts
  • Cheques
  • Electronic transfers

4. Note any loans or liens

If there are any loans or liens against the item, be sure to note them and describe the arrangements for loan or lien repayment. 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.

What is the difference between a Bill of Sale and a Sales Agreement?

Generally, a Bill of Sale is used for straightforward transactions where money is exchanged, and the ownership of the item transfers from the seller to the buyer.

A Sales Agreement is used for more complex transactions where more details about the sale are required, such as information about any warranties on the item. A Sales Agreement can also be used to cover any services relating to the item, such as installation fees. If services are the only thing being paid for, use a Service Agreement instead.

Do I need to have the Bill of Sale witnessed by a third party?

Most jurisdictions do not require that a Bill of Sale contain witness signatures, but having one or two witnesses when the Bill of Sale is signed is better evidence that the parties entered into the Bill of Sale if the matter goes to litigation.

Who keeps the Bill of Sale?

In general, it’s a good idea for a buyer and seller to print and sign two copies of a Bill of Sale. By executing two copies, both parties can retain proof that the transaction occurred.

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