Last Updated March 12, 2024
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What is a Bill of Sale?
A Bill of Sale is a document that a buyer and seller use to record the sale of an item, such as a car or boat. Creating one provides proof that an item's ownership was transferred from the seller to the buyer.
Bills of Sale are only useful for transactions in which the buyer accepts the item's condition at the time of the sale. This is called selling an item “as-is.”
A Bill of Sale is also known as an:
- Absolute Bill of Sale
- Sales receipt
- Proof of purchase
What does "as-is" mean in a Bill of Sale?
"As-is without any warranties" means that the seller does not guarantee the item's quality. Therefore, the seller cannot be held liable for any flaws found in the item as long as they have not purposely hidden any of this information from the buyer.
What items can I sell with a Bill of Sale?
Our Bill of Sale can be customised for a variety of items, such as:
- Motor vehicles, such as cars, trucks, and motorcycles
- Travel vehicles, such as trailers, RVs, and campers
- Watercrafts, such as boats, yachts, and ships
- Off-road vehicles, such as bicycles, dirt bikes, and golf carts
- Equipment, such as tractors, tools, appliances, and exercise equipment
- Animals, such as horses, cats, and dogs
- Personal property, such as clothing and jewellery
- Electronics, such as phones or computers
What is Singapore's Bills of Sale Act?
The Bills of Sale Act 1886 governs Bills of Sale in Singapore. It outlines the rules for properly completing a Bill of Sale and the circumstances in which a Bill of Sale is void. This act has been revised in recent years, so the most up-to-date version incorporates all amendments up to and including December 1, 2021.
Using a Bill of Sale for a vehicle
If you are selling or buying a vehicle in Singapore, record the transfer with a Bill of Sale. However, to actually register the transfer of a vehicle, the Land Transport Authority (LTA) usually requires the use of another prescribed form. The BOS can be used as evidence of the sale, but it is not a replacement for the LTA's prescribed form or official process.
Think of creating a Bill of Sale as a preliminary step in the sale process before registering the actual sale with the LTA. The LTA allows registration to occur up to seven days after a sale.
In addition to a Bill of Sale and any prescribed forms from the LTA, a buyer needs a Certificate of Entitlement (COE) to register a vehicle in Singapore. A COE is a licence that gives you the right to own and use a vehicle on the road. If the previous owner already had the vehicle registered, it will have a Certificate of Entitlement (COE) and it will transfer with the car during the sale.
A COE only lasts for 10 years before it must be renewed or the vehicle must be deregistered. If you are considering buying a car from a private seller, consider the years left on the COE when deciding. The more years left on a COE the better.
If you buy a vehicle that is not registered, you will need to bid for a COE before you will be able to register the car. This bidding process occurs twice a month. Consult the LTA for more information on COE bidding. A COE can be quite expensive, so be sure to consider this when determining the price of the car.
Using a Bill of Sale for a boat
If you are selling or buying a boat or other watercraft in Singapore, you need to record the transaction with a Bill of Sale. Buyers need a properly executed Bill of Sale so they can complete the registration process.
Boats used for both pleasure and commercial purposes must be registered in Singapore. Pleasure craft must be registered in the register of Singapore pleasure craft. Commercial boats must be registered with the Singapore Registry of Ships. To complete registration for either type of boat you need a valid Bill of Sale.
How to write a Bill of Sale
The easiest way to create a Bill of Sale is by using a template. You can create your document by entering the following information into our Bill of Sale template:
- The seller's and buyer's information
- A description of the item being sold
- The sale price, sales tax, and form of payment
- Any loans and liens on the item
Once you enter all the necessary information, you and the other party can sign your Bill of Sale in the presence of a witness to execute it.
How to register a Bill of Sale in Singapore
In Singapore, you may have to register a Bill of Sale depending on what item you are buying. For example, if you are buying a boat, you need to register your Bill of Sale during the boat registration process.
In addition, you may need an authorised individual to attest to its authenticity. If it is not attested by an authorised individual, it may be unenforceable.
To register your Bill of Sale, follow these steps:
- Prepare your Bill of Sale
- Get your Bill of sale attested/notarised
- Register your Bill of Sale with the appropriate office or court
Bill of Sale versus receipt
A Bill of Sale is different from a sales receipt. Sales receipts show proof of purchase but do not bind sellers and buyers to any specific terms. In fact, sales receipts usually do not have any identifying information about the buyer and seller.
In contrast, a Bill of Sale is a legally binding document that transfers ownership. It binds both parties to specific terms, such as the condition and price of the sold item. Bills of Sale have more in-depth information about the seller and buyer.
Is a Bill of Sale legally binding?
Yes, when properly executed, a Bill of Sale is legally binding. Once you sign a Bill of Sale you can be held to its terms by the other party. Therefore, be very sure that you agree to the document's terms before signing.
