What is the purpose of a Bill of Sale?

The purpose of a Bill of Sale is to pass title of personal property from one party to another. It serves as a legal document that signifies the transfer of ownership and outlines the details of the transaction, such as the description of the property, the purchase price, and the parties involved. This is particularly important for personal property, like vehicles, furniture, or equipment, as it provides proof of ownership for the buyer and protects their rights.

In contrast, leasing property requires different legal documentation, as it does not transfer ownership but grants temporary use. A warranty deed, on the other hand, pertains to real property and provides a guarantee of clear title, which is a different function altogether. Documenting a mortgage relates specifically to securing a loan against real property, not the transfer of ownership. Each of these options refers to distinct legal instruments, where the Bill of Sale is uniquely focused on the transfer of personal property.