A bill of sale is used to legally document, and protect you when selling any personal property to another person. If you don't legally document the transaction in writing then there's no record of the transaction, and therefore nothing to prove you have or had any right over the item. Using a bill of sale will protect the consumer rights of both the seller and the buyer. Using a bill of sale is especially important when your the buyer, but still important for the seller too.

Some things a bill of sale should cover is the date of the transaction, who sold what, who bought it, and how much he or she paid for it. For example, in Arizona both the seller(s) and buyer(s) must notarize all signatures. If the Arizona bill of sale is not notarized then it is void and not legally valid. All parties must also appear before the same notary all at the same time. Although, Arizona state does allow a separate notary acknowledgement to be attached for additional signatures.

Some important things to remember when filling out the legal form is to use "OR" or "AND" in between the specified names if there is more than one name for the owner. Also, if ownership of the property is being transferred to a business entity then the signatures of two authorized persons are required. A copy of the business organizational papers must also be provided. Business organizational papers may include things like Articles of Incorporation, Partnership Agreement, Articles of Organization, ect.

Preparing your own bill of sale is pretty simple, a lawyer is not required. You could hire a lawyer though, but finding a bill of sale form for your state on the Internet is simple and easy. Since every state varies, I could only provide you with a guide to complete a legal Arizona bill of sale, but if you live in Arizona, follow it and you'll be just fine.