Bill of Sale
A legal document that transfers ownership of personal property from seller to buyer, providing written proof of the sale and change of ownership. In real estate transactions, bills of sale typically cover personal property items like appliances, furniture, or equipment that are sold separately from the real property.
Example
“The seller provided a bill of sale for the refrigerator and washer-dryer that were included with the house purchase.”
Memory Tip
Bill of Sale = 'Bill for Sale' - it's like a receipt that bills (documents) what was sold and to whom.
Why It Matters
Bills of sale protect both buyers and sellers by clearly documenting what personal property was sold, the price paid, and the transfer of ownership rights.
Common Misconception
Many people think a bill of sale is the same as a deed, but bills of sale only transfer personal property while deeds transfer real property (land and buildings).
In Practice
If you're buying a home and the seller is including their washer, dryer, and patio furniture in a separate transaction, you'll receive a bill of sale for these items in addition to the deed for the house.
Etymology
Originating from medieval commerce, 'bill' comes from Latin 'bulla' (seal) and referred to any official document, while 'sale' comes from Old Norse 'sala' (act of selling).
Common Misspellings
Compare today's mortgage rates
More in real estate
Other real estate terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.