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Free Tennessee General Bill of Sale

A general bill of sale is the catch-all document for any personal property transfer in Tennessee that doesn't involve titled goods (motor vehicles, boats with motors, mobile homes). Lawn equipment, business assets, livestock other than horses, instruments, electronics, jewelry, and farm equipment all transfer through a general bill of sale. Tennessee's casual sale tax exemption means most private-party transfers carry no tax obligation, but a written bill of sale is still essential — for warranty disputes, insurance claims, and proving ownership if the item is later stolen and recovered.

Tennessee Requirements: Transfer title within 30 days. 7% sales tax.

Seller Information

Buyer Information

General Details

Sale Information

Condition & Warranty

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A general bill of sale works for furniture, tools, equipment, or any personal property — but only if written correctly. Our step-by-step guide shows exactly what language to include so the document holds up if there is ever a dispute. Read: How to Write a Bill of Sale (Step-by-Step)

Tennessee General Bill of Sale — What You Need to Know

Primary Form
Standard bill of sale
Agency
No specific Tennessee agency — general bills of sale are governed by Tennessee Uniform Commercial Code (T.C.A. Title 47, Chapter 2)
Primary ID Field
Serial Number
Sales Tax
Exempt
Title Required
No
A general bill of sale covers personal property that is not titled by the state — equipment, tools, furniture, electronics, livestock other than horses, jewelry, instruments, business inventory, etc. No state filing is required; the bill of sale itself is the entire ownership record.
Inspection
Not required

Sales Tax Details

Casual sales of personal property between private individuals are generally exempt from Tennessee sales tax under the casual/isolated sale exemption (T.C.A. § 67-6-102). Sales by businesses, dealers, or anyone making three or more sales per year of similar items are subject to 7% state tax plus local option tax.

Exemption: Casual/isolated sales between non-business private parties; family gifts; inheritances; sales of items used in a qualifying farm operation (with Ag Exemption Certificate).

Inspection Requirements

No inspection is required for general personal property transfers in Tennessee.

Tennessee General Sale — Step-by-Step Checklist

  1. Identify the property with as much specificity as possible: make, model, serial/identification numbers, year of manufacture, color, distinguishing marks
  2. For multiple items, attach an itemized list with individual values rather than a lump sum
  3. State the exact purchase price; if multiple items, allocate price across items for insurance purposes
  4. Include both parties' full legal names, addresses, and contact information
  5. Specify the property is sold "as-is, where-is, with all faults" unless a specific warranty is being offered
  6. Note the date and location of transfer, and who is responsible for pickup, transport, and any associated costs
  7. Both parties sign and date; notarize for high-value items ($5,000+) or anything that could later be disputed

Common Pitfalls

  • Vague descriptions like "miscellaneous tools" — without serial numbers and specific descriptions, you can't prove which item was sold if a dispute arises
  • Forgetting to mark "as-is" — Tennessee's implied warranty of merchantability under UCC § 2-314 can apply to private sales unless explicitly disclaimed in writing
  • Combining multiple items at one lump price — makes insurance claims harder and creates problems if one item is later returned or disputed
  • Skipping written terms on payment — if the buyer is paying installments, get a signed promissory note separate from the bill of sale
  • Not photographing the items at the time of transfer — pictures of serial number plates and condition protect both buyer and seller against later disputes
  • Assuming a casual sale always avoids sales tax — making three or more similar sales in a year converts you into a "dealer" under TN law and subjects all sales to tax

Pro Tip

A general bill of sale is the simplest legal document in Tennessee but also one of the most useful — it transfers ownership of anything not titled by the state and creates a permanent record that protects buyer and seller in tax, insurance, and legal contexts. Specific identification, "as-is" language, and signatures are the three elements that turn a transaction into a defensible record.

Tennessee General Bill of Sale — FAQs

When do I need a bill of sale versus just a receipt?
A receipt confirms a payment was made; a bill of sale transfers ownership of identified property. For low-value, fungible items (a toaster from Goodwill), a receipt is fine. For anything with a serial number, anything you might insure, anything used in business, or anything worth more than a few hundred dollars, use a bill of sale. The bill of sale identifies the specific property, the parties, the price, and the transfer date in a way that holds up in small claims court, insurance claims, and tax audits. Tennessee small claims (general sessions) court routinely relies on bills of sale to resolve ownership disputes.
Do I owe Tennessee sales tax on a private sale of used equipment?
Usually no, under TN's casual sale exemption (T.C.A. § 67-6-102). The exemption covers occasional sales of personal property by individuals who are not in the business of selling that type of item. The exemption does NOT apply if you make three or more sales of similar items in a 12-month period — at that point Tennessee considers you a "dealer" and you must register, collect 7% state tax plus local option tax, and remit it. Estate sales, garage sales, and one-off Craigslist sales are casual; flipping equipment as a side business is not.
Should I notarize a general bill of sale?
It's optional but highly recommended for items worth $5,000 or more, anything with a serial number that could be disputed later, or any sale where the parties are not well-known to each other. Notarization adds two protections: it confirms the identity of the signers (so the seller can't later claim they didn't sign), and it adds significant evidentiary weight in court. Tennessee notaries charge $4-$10 per signature and most banks notarize for free for account holders. For a $200 used lawnmower, skip it; for a $30,000 piece of farm equipment, definitely notarize.
What does "as-is" really mean and is it enforceable in Tennessee?
"As-is" means the buyer accepts the property in its current condition with all visible and hidden defects, and the seller makes no warranties express or implied. Tennessee enforces "as-is" clauses in private-party sales as long as the language is conspicuous (in a clearly visible part of the document, ideally bold or all-caps) and the seller doesn't commit fraud or actively misrepresent the property's condition. The standard language is: "AS-IS, WHERE-IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE." That phrase, signed by the buyer, defeats almost all later complaints about condition.
How long should I keep a bill of sale after the transaction?
Permanently for items still in your possession; for at least 7 years after disposing of the item. Tennessee's civil statute of limitations for breach of contract is 6 years (T.C.A. § 28-3-109), and the IRS can audit business asset transactions for at least 3 years (longer in fraud cases). For valuable items, the bill of sale is also your insurance documentation — homeowner's and commercial policies require proof of ownership for claims. Scan and store digitally in addition to keeping the paper original; a fireproof safe or encrypted cloud storage protects against loss without taking up space.