Bill of Sale

A bill of sale is a written document that records the transfer of ownership of personal property from a seller to a buyer. It serves as proof of the transaction and protects both parties by documenting the terms, sale price, and condition of the property at the time of sale.

In Minnesota, a bill of sale is not required by statute for most private-party sales of personal property, but it is strongly recommended. For vehicles, boats, snowmobiles, and ATVs, a bill of sale is required as part of the title transfer process.

When to Use This Template

• You are selling or buying personal property such as furniture, electronics, tools, equipment, livestock, or other goods
• You are selling or buying a vehicle, boat, snowmobile, or ATV in a private-party transaction
• You need a written record of the sale price, condition, and date of transfer
• The buyer needs proof of purchase for insurance, registration, or warranty purposes
• You want to document that the sale is “as-is” with no warranties

How to Use This Template

1. Download the template in your preferred format (PDF or DOCX).
2. Fill in the seller’s full legal name and address exactly as it appears on any title or registration document.
3. Fill in the buyer’s full legal name and address.
4. Describe the property being sold in specific detail. Include make, model, year, color, serial number, VIN (for vehicles), hull identification number (for boats), and any other identifying information. The more specific you are, the better the document protects both parties.
5. State the sale price and how payment was made (cash, check, money order, etc.).
6. Describe the condition of the property. If the sale is “as-is” (no warranties), say so clearly.
7. Include any warranties or guarantees, or state explicitly that there are none.
8. Both parties sign and date the document. Each party should keep a signed copy.

Minnesota-Specific Requirements by Property Type

Vehicles (Cars, Trucks, Motorcycles)

A bill of sale alone does not transfer vehicle ownership in Minnesota. You must also complete a title transfer through the Minnesota Driver and Vehicle Services (DVS).

Required steps for a private-party vehicle sale:

1. The seller signs the back of the vehicle title, transferring it to the buyer
2. Complete a bill of sale documenting the sale price
3. The buyer applies for a new title and registration at a DVS office or deputy registrar within 20 calendar days ( Minn. Stat. § 168A.10 )
4. The seller completes and returns the “Notice of Sale” form to DVS within 10 days ( Minn. Stat. § 168A.10 )
5. The buyer pays applicable motor vehicle excise tax (6.875% of the purchase price or the vehicle’s estimated market value, whichever is greater per Minn. Stat. § 297B.02 ) and registration fees. For vehicles 10+ years old valued under $3,000, the tax is a flat $10 ( Minn. Stat. § 297B.025 )

For more information, visit Minnesota Driver and Vehicle Services.

Boats, Canoes, and Watercraft

Boats and watercraft requiring registration in Minnesota must have title transferred through the Minnesota Department of Natural Resources (DNR). A bill of sale is required as part of the transfer process.

• Motorized watercraft must be registered with the DNR
• Canoes, kayaks, and paddleboards under certain size thresholds may not require registration but a bill of sale is still recommended

For details, visit the Minnesota DNR watercraft registration page.

Snowmobiles and ATVs

Snowmobiles and ATVs must be registered with the Minnesota DNR. Title transfer requires a bill of sale and signed title.

Firearms

Minnesota does not require a bill of sale for private-party firearm transfers, but a written record is strongly recommended. Note that transferring a pistol or semiautomatic military-style assault weapon to a private party in Minnesota requires either a transferee permit or a background check through a federally licensed firearms dealer ( Minn. Stat. § 624.7132 ).

General Personal Property

For furniture, electronics, equipment, livestock, and other personal property, no filing or registration is required. The bill of sale is your private record of the transaction.

What to Include in the Bill of Sale

A complete bill of sale should include:

• Date of the sale
• Full legal names and addresses of the buyer and seller
• Detailed description of the property (make, model, year, serial number, VIN, condition)
• Sale price and form of payment (cash, check, money order)
• Warranty status (“as-is” or description of any warranties)
• Signatures of both parties
• Signatures of witnesses (recommended for high-value items)

Common Mistakes to Avoid

1. Vague property descriptions. “One used car” is not sufficient. Include the year, make, model, VIN, mileage, and color.
2. Forgetting to transfer the title. For vehicles, boats, snowmobiles, and ATVs, the bill of sale is not enough. You must also transfer the title through the appropriate state agency.
3. Not keeping a copy. Both parties need their own signed copy.
4. Understating the sale price. For vehicles, the buyer owes sales tax based on the higher of the sale price or estimated market value. Falsifying the price is illegal.
5. Omitting the “as-is” language. If you are selling without any warranties, say so explicitly. Otherwise, the buyer may argue that implied warranties apply.
6. Not verifying ownership. Before buying, confirm that the seller actually owns the property and has the right to sell it. For vehicles, check that the title is in the seller’s name.

When to Get the Document Notarized

Minnesota law does not generally require a bill of sale to be notarized. However, notarization is recommended when:

• The property is worth more than $500
• The property is a vehicle, boat, or other titled asset
• Either party wants additional proof of authenticity
• A lender or insurance company requires a notarized document

Notarization adds a layer of legal protection by having a neutral third party verify the identities of the people signing the document.

Related Resources

Small Claims Court (Conciliation Court) in Minnesota

• Minnesota Driver and Vehicle Services – title transfers and vehicle registration
• Minnesota DNR Watercraft Registration – boat and watercraft registration
• Minnesota Attorney General - Consumer Protection – information about consumer rights in private sales