Do I need a bill of sale to sell used equipment?

Most equipment is not titled the way a car is, so the bill of sale is usually the only document that proves the sale ever happened. It records who sold what, for how much, and on what date. Without one, a buyer has no paper trail showing they own the machine, and a seller has nothing to point to if the buyer later claims the deal included something it did not. For anything worth more than a few hundred dollars, write one.

Does an equipment bill of sale need to be notarized?

Notarization is optional in most states, but it is worth doing on higher-value gear. A notary confirms both people signed willingly and are who they say they are, which makes the document much harder to challenge later. On a forklift or a CNC machine worth tens of thousands of dollars, a few minutes at a bank or shipping store is cheap insurance against a dispute over whether the signature is real.

How do I record serial numbers and attachments?

Write down the make, model, and serial or PIN number of the main machine, then list every attachment and accessory on its own line. A skid steer might sell with a bucket, forks, and a grapple, each worth real money. Listing them separately fixes exactly what the buyer paid for and stops an argument later about whether an attachment was part of the price or borrowed.

What does selling equipment "as-is" mean?

An as-is sale means the buyer accepts the equipment in its current condition with no warranties. Once the bill of sale is signed, the seller is not responsible for a hydraulic leak or a failed bearing the buyer finds next week. Used equipment is often worked hard for years, so as-is language is standard in private sales. State it in plain words on the document so there is no question about who carries the risk after the sale.

How do I know used equipment is not still financed?

Ask the seller directly whether a loan or lien is attached to the machine, and get the answer in writing on the bill of sale. Equipment lenders often file a UCC lien that follows the asset until the loan is paid off. If you buy a machine with an unpaid lien, the lender can still have a claim on it after you own it. Search your state UCC filings by the seller name before you hand over money.

Equipment Bill of Sale Template & Guide

A step-by-step guide to writing an equipment bill of sale. Covers serial numbers, as-is terms, liens, sales tax, and common mistakes that void a clean sale.

Selling a piece of used equipment looks simple. Someone shows up with cash, you hand over the forklift or the welder or the commercial mixer, and everyone goes home happy. The problem shows up weeks later, when the buyer says the price included an attachment you never agreed to sell, or a lender calls because the machine still has a loan against it. An equipment bill of sale is the one-page document that keeps those problems from landing on you.

This guide covers what an equipment bill of sale is, what every line should say, how to handle as-is sales and liens, and the mistakes that turn a clean transaction into a fight.

What Is an Equipment Bill of Sale?

An equipment bill of sale is a written record that ownership of a machine passed from a seller to a buyer on a specific date for a specific price. It names both parties, describes the equipment in enough detail to identify it, states the amount paid, and gets signed by both sides.

Most equipment is never titled. A car has a title that the DMV transfers from one owner to the next, so the paper trail is built in. A generator, a tractor-mounted implement, a restaurant oven, or a piece of shop machinery has no title at all. The bill of sale steps into that gap and becomes the primary proof of who owns the thing. For the buyer, it is evidence of ownership if anyone questions it. For the seller, it is the record that the sale closed and that the machine left their hands in a known condition.

The term "equipment" covers a wide range: construction gear, farm implements, restaurant and commercial kitchen appliances, manufacturing and shop tools, landscaping machines, medical and dental equipment, and office machinery. The structure of the document stays the same across all of them. What changes is the detail you use to describe the item.

When You Need One

Write an equipment bill of sale any time money changes hands for a machine. A few common situations:

Private party sales. A contractor sells a used compressor to another contractor.
Business asset sales. A company closing a location sells off its kitchen line or shop equipment.
Auction and liquidation purchases. The auction house usually issues paperwork, but a separate bill of sale fixes the specifics.
Trade-ins and partial trades. When part of the price is paid in another machine, the document records both sides of the swap.
Gifts and transfers between businesses. Even a zero-dollar transfer benefits from a record showing the change of ownership.

If the equipment is part of a larger purchase of an entire business or product line, a bill of sale alone may not be enough. In that case you are usually working from an asset purchase agreement, and the bill of sale becomes the closing document that actually transfers each machine.

What to Include in an Equipment Bill of Sale

A strong equipment bill of sale answers five questions: who, what, how much, in what condition, and when. Cover each one clearly and you have a document that holds up.

1. The Parties

Use full legal names and current addresses for both the seller and the buyer. For a business, use the registered company name and the state where it is organized, plus the name and title of the person signing on its behalf. A handshake deal between "Mike" and "the guy from the job site" is worthless if you ever need to enforce it.

2. A Precise Description of the Equipment

This is the heart of the document. Vague descriptions cause most after-the-sale disputes. Include:

Type of equipment (skid steer, walk-in cooler, plasma cutter)
Make and model
Year of manufacture
Serial number, PIN, or VIN stamped on the machine
Hour meter or mileage reading, if it has one
Color and notable condition details (cracked housing, recent rebuild, missing guard)

Photograph the serial plate before the sale. A buyer who can match the number on the bill of sale to the number on the machine can prove this is the exact unit that was sold, which matters for warranty claims, insurance, and theft recovery.

3. Attachments, Accessories, and Implements

List every attachment on its own line. A skid steer that sells with a bucket, pallet forks, and an auger is really four items, and each one has value. The same goes for a commercial mixer sold with extra bowls and paddles, or a generator sold with cables and a transfer switch. Writing them out one by one fixes exactly what the buyer paid for and stops the classic argument over whether an accessory was included or just sitting nearby.

4. The Purchase Price and Payment Terms

State the total price in numbers and, ideally, in words. Record how it was paid: cash, certified check, wire transfer, or trade. If the buyer is paying in installments, say so and note what happens if they miss a payment, including whether you keep title until the final payment clears. For most private equipment sales, payment in full at delivery is cleanest and avoids the headache of chasing money later.

5. As-Is Language and Any Warranties

Most used equipment sells as-is, meaning the buyer takes it in its current condition with no warranty. Spell this out plainly: "The equipment is sold AS-IS, WHERE-IS, with no warranties of any kind, express or implied, including any warranty of merchantability or fitness for a particular purpose." Once that line is signed, you are not on the hook for a failure the buyer discovers next month.

If you are giving any warranty at all, the opposite is true: write down exactly what you cover and for how long. Silence on warranties is risky. In some states, a sale with no written terms can carry an implied warranty by default, which is the last thing a private seller wants.

6. Lien and Ownership Statement

Include a line where the seller represents that they own the equipment free and clear and that no liens or loans are attached to it. This protects the buyer and puts the seller on record. If a lien does exist, it must be disclosed and handled before the sale, not papered over. The cleanest fix is for the seller to pay off the lender first and get a written release, or for the payoff amount to come straight out of the sale price at closing so the lien clears the moment money changes hands.

7. Date and Signatures

Both parties sign and date the document. The date sets the moment risk and ownership pass from seller to buyer, which matters for insurance and for any claim about the machine's condition. Make two copies so each side keeps an original.

How to Write an Equipment Bill of Sale: Step by Step

Step 1: Gather the equipment details. Stand at the machine and copy the serial number, model, year, and hour meter directly off the plate. Do not work from memory or an old invoice.

Step 2: Confirm clear title. Search your state's UCC filings under the seller's name to check for liens before any money moves. If the seller financed the machine, the lien may still be active.

Step 3: Agree on price and condition. Settle the number and write down whether the sale is as-is or carries a warranty. Note any known defects so the buyer cannot later claim they were hidden.

Step 4: List the parties and the equipment. Fill in full legal names, addresses, and the complete description with every attachment on its own line.

Step 5: State payment. Record the amount, the form of payment, and the date received.

Step 6: Add the as-is and lien language. Include the warranty statement and the seller's representation that the equipment is free of liens.

Step 7: Sign, date, and copy. Both parties sign. Notarize if the value is high. Each side keeps a signed original.

Sales Tax and Equipment Sales

Used equipment sales can trigger sales or use tax depending on your state and whether the seller is a registered dealer. A private one-time sale between two individuals is often exempt, while a business selling off inventory or assets may need to collect tax or document an exemption. Some buyers qualify for a resale or farm exemption and will provide a certificate. The bill of sale is where the price is recorded, so it is also the document a tax authority will look at if they ever ask. When the dollar amount is large, confirm the rule with your state's revenue department rather than guessing.

Common Mistakes That Leave You Exposed

Skipping the serial number. A description that says "used forklift" identifies nothing. If the machine is stolen, damaged, or disputed, you cannot prove which unit changed hands. Always capture the serial or PIN.

Leaving attachments off the list. The single most common after-sale argument is whether an attachment was included. List every one, and the argument disappears.

No as-is clause. Without it, a buyer can come back over a normal wear failure and argue you owe them a repair. The clause closes that door.

Ignoring liens. Buying equipment with an active loan against it means the lender can still come after the machine even after you pay the seller. A quick UCC search and a written lien representation prevent it.

No date or only one signature. An undated or half-signed bill of sale is weak evidence. Both parties sign, both date, both keep a copy.

Reusing the wrong form. A vehicle bill of sale and an equipment bill of sale are close cousins but not identical. If you are selling something road-registered, the rules differ, so check whether you need a bill of sale when selling a vehicle before you reach for a generic template.

Related Bill of Sale Guides

Equipment sales overlap with several specific machine types. If your item is closer to one of these, the targeted guide will have detail that a general form misses:

The tractor bill of sale guide walks through hour meters, implements, and farm-use title rules.
The ATV bill of sale guide covers off-road titling and as-is terms for powersports gear.

Both follow the same structure as the equipment form, so the habits carry over: capture the serial number, list every accessory, and state the condition in writing.

Related guides

Generate Your Equipment Bill of Sale with Contractable

A good equipment bill of sale is not complicated, but the details decide whether it protects you. Miss the serial number, skip the as-is line, or forget a lien check, and a one-page document that should have closed the deal becomes the start of an argument. Contractable builds a complete equipment bill of sale in seconds, with the right description fields, as-is language, and lien representation for your sale. No lawyer and no legal background required.