A bill of sale should include the seller's and buyer's name and address, transaction date, description of the item being sold and any special conditions of the sale. Previous owners should also be listed, along with the amount paid, payment method and the vehicle identification number.
The item description should include any serial numbers, identification numbers, make and model, color and any faults. The amount paid should also show the method of payment, the amount owed, payment amount and any interest on payments.
A bill of sale verifies a purchase of a valuable asset for proof of ownership. The bill of sale confers legal ownership to the purchaser and releases the previous owner from liability in any future disputes over the item. The bill of sale can also be used to determine how much the new owner has to pay in taxes.
Due to the legal nature of the bill, all information on it should be 100 percent accurate and verified. If the note is handwritten, the writing should be legible in case it ever needs to be produced for proof. Extra copies are always great for a backup in case the original bill is accidentally misplaced, lost or destroyed.