Bill of Sale
Create a legally binding Indiana drone bill of sale. Comply with FAA Part 107 and Ind. Code § 32-21-1-1 requirements for sUAS, LiDAR, and payload transfers.
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In Indiana, transferring high-value UAS assets requires more than a handshake. Per Ind. Code § 32-21-1-1 (Statute of Frauds), transactions over $500 must be in writing to be enforceable. For drone... Read more
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In Indiana, transferring high-value UAS assets requires more than a handshake. Per Ind. Code § 32-21-1-1 (Statute of Frauds), transactions over $500 must be in writing to be enforceable. For drone pilots, a Bill of Sale does more than record a price; it formally transfers the chain of title for FAA registration, clarifies the 'as-is' status of sensitive hardware like gimbals or LiDAR sensors, and protects you from liability regarding the buyer's future flight operations or privacy violations under the Indiana Deceptive Consumer Sales Act.
Beyond the standard bill of sale sections, this template adds fields specific to Drone Pilot:
A Bill of Sale serves the core legal purpose of providing proof of the transfer of ownership of an item from the seller to the buyer. It formalizes the transaction and fulfills the legal need for documentation of the sale, aiding in preventing disputes over ownership and clarifying the terms and conditions agreed upon by the parties involved.
FAA Regulation Violations
Contracts can specify that pilot maintains active Part 107 certification and compliance with all FAA guidelines.
Privacy Invasions
Agreements often include clauses ensuring compliance with federal and state privacy laws, as well as specifying data collection practices.
Property Damage
Service contracts typically include indemnity clauses and require the pilot to have sufficient insurance to cover potential damages.
Airspace Violations
Contracts may require pilots to obtain necessary airspace authorizations and provide proof of compliance with flight plans.
For this bill of sale to be legally valid:
Common mistakes to avoid:
FAA Part 107
Governs the commercial operation of small unmanned aircraft systems (sUAS), detailing requirements for operation, pilot certification, and aircraft limitations.
Enforced by Federal Aviation Administration (FAA)
FAA Section 336
Regulates model aircraft operations primarily for hobbyists, which can sometimes impact drone pilots in determining the commercial vs. recreational distinction.
Enforced by Federal Aviation Administration (FAA)
State-specific drone laws
Each state may have specific laws regulating drone use, such as registration requirements, privacy laws, and restricting operations in certain areas (e.g., near critical infrastructure or private property).
Enforced by State Aviation Authority or Department of Transportation
Recommended coverage: Aviation Liability Insurance · Commercial General Liability Insurance · Drone Hull Insurance (covers damage to the drone) · Errors and Omissions (E&O) Insurance
Yes. While the FAA manages the Part 107 registry federally, they require proof of a legal transfer of ownership to deregister the seller and register the buyer. An Indiana Bill of Sale provides this evidence and satisfies Ind. Code § 32-21-1-1 requirements for the sale of goods over $500.
Your Bill of Sale should include a 'Description of the Item Sold' that lists the serial numbers for both the airframe and the specific sensors or gimbals. This prevents disputes regarding the scope of work or data services tied to the hardware and ensures the buyer acknowledges the condition of calibrated equipment.
The Bill of Sale includes a 'Buyer’s Acknowledgment' clause where the buyer accepts the current condition of the UAS and assumes all future liability. This is critical for mitigating risks related to future airspace or privacy violations once the drone leaves your control.
Provided your Bill of Sale contains a clear 'Warranties and Disclaimers' section (an 'as-is' clause), the risk of loss passes to the buyer upon signing. Without this, you could be vulnerable to claims under the Indiana Deceptive Consumer Sales Act if the buyer alleges undisclosed mechanical defects.
State laws affect what must be in this document. Pick your jurisdiction.
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