What is a bill of sale used for?

A bill of sale is a legal document that serves as a receipt, providing proof of the transfer of ownership of personal property from one party to another. This is particularly relevant for items that are not affixed to real estate, such as vehicles, furniture, machinery, and other tangible assets. The document typically includes details about the item being sold, such as a description, the sale price, and the identities of both the seller and the buyer.

In this context, personal property encompasses all movable items that can be owned, distinguishing it from real property, which refers to land and anything permanently attached to it, like buildings. Therefore, while documents related to real property—such as deeds—are important for transferring ownership in real estate transactions, a bill of sale specifically addresses the ownership of personal property.