Sometimes, people, especially grocery store owners, find themselves with a large quantity of ĥametz before Passover. If they do not mind suffering a loss, they can burn it or give it as a gift to a non-Jew. However, if they do not want to suffer this loss, they can sell the ĥametz to a non-Jew before Passover. Here is how it is done:
A friendly, trustworthy non-Jew buys the ĥametz at full price and puts down a cash deposit. Both sides agree that if the non-Jew wishes to sell the ĥametz back after Passover, the Jew will return the deposit and buy back the ĥametz. This way, the non-Jew will not suffer any loss. (In the unlikely event the non- Jew decides to keep the ĥametz after Passover, the buyer would have to pay the rest of the money.)
Since the sale is legally and halakhically binding, and the seller wholeheartedly agrees to give the ĥametz sold to the non-Jewish buyer should he ask for it, the ĥametz belongs to the non-Jew over Passover (even if the buyer has no use for it). This means the Jew cannot transgress the prohibitions of owning ĥametz. The sold ĥametz should be placed in a cabinet which is then locked or taped shut, and preferably labeled (as sold ĥametz), so no Jew will accidentally eat it.
It is advisable for all Jews to sell their ĥametz, since some food products may contain small amounts of ĥametz. On one hand, it would be a shame to get rid of them because of this possibility. On the other, since they might actually contain ĥametz, they must not be kept over Passover. Therefore, to avoid doubt, the best policy is to put them away and have in mind to include them in the sale.
Usually, people fill out a form authorizing their rabbi to sell their ĥametz to a non-Jew. Some rabbinic organizations offer this service through their website.