Tips for Using an As-Is Bill of Sale

An as-is bill of sale lets you sell items without any promise of quality, though you must still follow general sales etiquette. In this post, we’ll give eight great tips for making the most of an as-is bill of sale template.
1. Be Honest
This is the simplest rule, but one that too many sellers forget. If your item has a defect, you must disclose it. If that would seriously lower the product’s value/price or affect your ability to make a sale, perhaps it’s for the best.
You’ll have plenty of opportunities to share the item’s condition, including the bill of sale. There’ll be a section to describe what you’re selling; if it has any serious issues, lay these out. An “as-is” bill doesn’t mean you can knowingly sell broken goods.
2. Be Descriptive
Even if the item works fine and has no major defects, you must take the opportunity to describe it in full. Don’t leave anything out; even minor paint scuffs or scratches could become a big topic of debate if you’re not careful.
Here’s a quick rundown of what you should include:
- Basic identifiers, such as makes, model numbers, etc.
- Unique identifiers, such as a Vehicle Identification Number
- Physical characteristics, including color, size, and weight
- The item’s condition — don’t sugarcoat anything here
- Notes about any modifications, upgrades, or repairs
3. Add Photos
A bill of sale (no matter the type) is usually entirely text-based, but you can still go the extra mile by including photos of the item you’re selling. While this is no substitute for an inspection, it may inspire more people to inquire about buying.
Include photos from every angle, and don’t be afraid to show off the item’s condition, even if it’s not perfect. You could add these to the bill of sale, attach them in the same email, or simply find another way to present them.
4. Specifically Exclude Warranties
Saying the bill is “as-is” doesn’t mean anything on its own. You need to explicitly state in the bill that you’re selling your property “as-is, with no warranties expressed or implied.”
It’s also worth adding another line specifically saying you disclaim all warranties, including — but not limited to — warranties of merchantability and warranties of fitness.
You should use an online template to figure out your as-is bill’s specific language. If you try to do this without a template, you could word it incorrectly and void the document.
5. Allow Inspections
State in your bill of sale (and any prior correspondence) that the buyer is allowed to inspect your item. This alone can give your ideal buyer more confidence to go ahead with the sale.
The inspection’s particulars depend on the item you’re selling. Here are a few examples:
- Cars and other vehicles often need a test drive
- Boats similarly would benefit from a sea test
- Homes/real estate will need a formal walkthrough
- Electronics, such as phones, require a hands-on test
- Gemstones should have a professional appraisal
6. Include a Buyer’s Acknowledgement
Add an extra section to your bill of sale that acknowledges the item’s condition and confirms that the buyer has had a chance to inspect it. Signing the final document then serves as formal proof that the buyer is satisfied with the item’s condition.
You can also include an “acknowledgement of risk” section, where the buyer acknowledges that the item isn’t new. This means they accept the item might break or fail soon after purchase, but they trust you not to sell knowingly faulty goods.
7. Consider a No Refunds Clause
Some buyers initially accept an as-is bill but still try to get a refund when the item doesn’t last as long as a new equivalent. To cover all bases, add a clause saying that you won’t offer a refund or take the item back.
Foregoing this clause can lead to a protracted dispute, even if it’s clear there was no foul play. In these situations, you can still offer a refund if you think it’s fair, but this clause means you won’t need to.
8. Accept Responsibility if Necessary
Buyers aren’t the only ones who might act unscrupulously in an as-is situation. If you conceal an item’s defects or know its lifespan isn’t as long as it might seem, you’re at fault. Not just that, but an as-is bill won’t protect you.
You can’t rely on these bills to let you sell anything you own without at least checking that it’ll be worth buying. Failing to inspect the goods yourself (or worse, knowingly selling faulty goods) still leaves you liable, even with as-is bills.
Final Thoughts
An as-is bill of sale lets you sell goods that aren’t in perfect condition, but only within reason. To make sure you’ve got a legally-binding bill handy, use a free or low-cost online template from a reputable site.
