A bill of sale is a legal document that transfers ownership of personal property from the seller to the buyer. In real estate transactions, a bill of sale is used when the purchase includes items that are not permanently attached to the property — known as personal property or chattels. Common examples include appliances (refrigerator, washer, dryer), furniture, window treatments, storage sheds not on a permanent foundation, hot tubs, and equipment or tools.
The distinction between real property and personal property is important in real estate law. Real property includes the land and everything permanently attached to it — the house, built-in cabinets, attached light fixtures, plumbing fixtures, and landscaping. These items transfer automatically with the deed. Personal property, on the other hand, is movable and does not automatically transfer unless specifically included in the purchase agreement and conveyed through a bill of sale.
Disputes over what is included in a home sale are surprisingly common. Is the wall-mounted television included? What about the built-in bookshelves? The outdoor pizza oven? To avoid conflicts, the purchase agreement should clearly list all personal property items included in the sale. At closing, the bill of sale formally documents this transfer, providing legal proof that the buyer now owns these items. The bill identifies the items being transferred, the parties involved, and the consideration paid (often stated as "for $10 and other good and valuable consideration" since the main value is in the real property).
Unlike a deed, a bill of sale does not need to be recorded with the county because it involves personal property, not real property. However, it should be signed by the seller and kept by the buyer as part of their closing records. In some cases, the bill of sale may also address any warranties — whether the items are being sold "as-is" or with some guarantee of working condition.
At Beycome Title, we prepare bills of sale as part of the closing package when personal property is included in the transaction. Our team reviews the purchase agreement to identify all items that need to be conveyed and ensures the documentation is complete. Whether you are buying a fully furnished vacation home or a property with included appliances, we make sure every item is properly documented. Visit beycometitle.com for your free closing estimate.