A Canadian Personal Property Bill of Sale is a legal document that records the transfer of ownership of tangible personal property — also known as chattels or moveable property — from a seller to a buyer under Canadian provincial and federal law. Personal property encompasses any physical item that is not real estate, including furniture, household goods, electronics, artwork, jewellery, musical instruments, sporting equipment, machinery, tools, and collectibles.

In common law provinces (Ontario, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island), the sale of personal property is governed by the provincial Sale of Goods Act. This legislation, which originates from the UK Sale of Goods Act, 1893, implies certain warranties into every sale of goods, including warranties of title, merchantability, and fitness for a particular purpose. These implied warranties apply unless the goods are explicitly sold on an as-is basis with a clear written disclaimer.

In Quebec, the sale of personal property is governed by the Civil Code of Québec (C.C.Q.), specifically Title Two (Nominate Contracts), Chapter I (Sale), articles 1708 through 1805. The C.C.Q. provides comprehensive buyer protections, including the warranty against latent defects (articles 1726–1731) and the warranty of ownership (articles 1723–1725). Quebec law generally provides stronger consumer protections than common law provinces, and sellers cannot easily exclude implied warranties for consumer transactions under the Consumer Protection Act (R.S.Q., c. P-40.1).

The Personal Property Security Act (PPSA) in each common law province establishes a registration system for security interests in personal property. Before completing a purchase, buyers should search the provincial PPSA registry to ensure no liens or security interests have been registered against the property. In Quebec, the equivalent system is the Register of Personal and Moveable Real Rights (RPMRR) established under the C.C.Q.

A properly executed personal property bill of sale creates a clear chain of ownership, documents the agreed-upon terms of the transaction, and provides evidence of the purchase price for tax purposes. It protects both parties by recording the condition of the property at the time of sale and establishing whether the sale includes any warranty protections.

A Canadian Personal Property Bill of Sale is needed whenever tangible personal property of significant value changes hands through a private sale. While there is no strict legal threshold requiring a bill of sale for every transaction, Canadian courts and legal practitioners recommend documenting any sale exceeding a few hundred dollars to avoid disputes about ownership, condition, and price.

The provincial Sale of Goods Act in common law provinces requires that contracts for the sale of goods above a specified threshold (typically $40 to $50, depending on the province) be evidenced in writing to be enforceable. This Statute of Frauds provision means that without a written bill of sale, a buyer may have difficulty enforcing the contract or proving their ownership in court. In Ontario, the Sale of Goods Act (R.S.O. 1990, c. S.1), section 5, requires written evidence for contracts valued at $40 or more.

The bill of sale is essential for insurance purposes, as home insurance policies may require proof of ownership and value for high-value items such as artwork, jewellery, musical instruments, and electronics. Estate settlements involving personal property require a bill of sale or transfer document to establish ownership and fair market value for probate purposes.

Business sales of equipment, inventory, or fixtures require a bill of sale to document the transaction for tax purposes, as the Canada Revenue Agency (CRA) requires records of all business asset acquisitions and dispositions. The bill of sale establishes the adjusted cost base of the property for capital gains calculations under the Income Tax Act (R.S.C. 1985, c. 1, 5th Supp.).

For valuable items subject to theft or fraud, the bill of sale provides proof of legitimate acquisition. Police and insurance investigators routinely request bills of sale when investigating property claims. Courts also accept bills of sale as primary evidence of ownership in civil disputes between parties claiming the same property.

Without a properly executed bill of sale, the buyer may face difficulty proving ownership, obtaining insurance coverage, claiming tax deductions for business property, or resolving disputes about the condition or value of the property at the time of sale.

A legally sound Canadian Personal Property Bill of Sale must include the full legal names and mailing addresses of both the seller and buyer, including the province or territory of residence and Canadian postal codes. The property description should be sufficiently detailed to uniquely identify the item being sold, including make, model, serial number, dimensions, colour, age, and current condition where applicable.

The purchase price must be stated in Canadian dollars (CAD), and the payment method should be specified (cash, certified cheque, bank draft, Interac e-Transfer, or other agreed method). The bill of sale should indicate whether the applicable GST/HST or provincial sales tax is included in the stated price. For private sales between individuals who are not GST/HST registrants, GST/HST generally does not apply under the Excise Tax Act (R.S.C. 1985, c. E-15), but provincial sales tax rules vary.

The delivery terms must specify which party is responsible for delivering the property and bearing the transportation costs. The transfer date or delivery deadline should be clearly stated. Under the provincial Sale of Goods Act, risk of loss transfers to the buyer when the property is delivered unless the parties agree otherwise.

A lien declaration is essential — the seller must warrant that the property is free from liens, security interests registered under the applicable provincial Personal Property Security Act (PPSA), and other encumbrances. For valuable items, the buyer should independently verify this through a PPSA registry search.

The warranty terms must be clearly stated. If the property is sold as-is, the disclaimer should explicitly exclude implied warranties under the provincial Sale of Goods Act. However, in Quebec, the warranty against latent defects under articles 1726–1731 of the Civil Code of Québec cannot be excluded in consumer transactions. If a limited warranty is provided, its duration, scope, and remedies must be specified.

The governing law clause should reference the applicable Canadian province, and both parties must sign and date the document. Include a witness signature line for additional legal protection. The effective date of the transfer should be clearly stated, as this determines when the risk of loss passes from the seller to the buyer and when the buyer’s ownership rights begin.