What is the purpose of a bill of sale?

The purpose of a bill of sale is specifically to transfer ownership of personal property, such as furniture, equipment, or other tangible items, from one party to another. It serves as a legal document that provides proof of the transfer, detailing what items are being sold and the agreed-upon price. In the context of real estate transactions, personal property included in the sale must be documented separately; hence, the bill of sale plays an essential role in conveying items that are not attached to the property itself.

This distinguishes it from other documents such as deeds, which are used to transfer title of real estate. A bill of sale does not create leases or cancel contracts, making it essential for ensuring that buyers and sellers have a clear record of what personal property is included in the transaction.