Bill of sale definition
/What is a Bill of Sale?
A bill of sale is a document that describes the sale of goods or property by a seller to a buyer. This is a legal document that clarifies the existence of an asset transfer in exchange for consideration paid by the buyer. A bill of sale can take the form of a receipt for a purchase at a store, or it can be a much more detailed document that describes a significant sale, such as the transfer of ownership in an office building.
Both parties to a sale should retain their copy of the bill of sale. This can then be used as a source document for the recordation of the related accounting transaction.
The Conditional Bill of Sale
A variation is the conditional bill of sale, in which the document is not finalized until some additional event occurs. For example, if a buyer were to borrow $50,000 from a seller in order to purchase a plot of land, the land would remain in the buyer’s possession as long as he made ongoing loan payments to the seller under the terms of the agreement.