A bill of sale is a document that proves you sold or bought a vehicle, and most states require one before the DMV will process a title transfer
A bill of sale is a written record that you and the buyer (or seller) both sign to show that money changed hands and ownership is moving. It is not the same as a title — the title is the legal proof of ownership that the state issues. The bill of sale is the paperwork that gets you to the title transfer. Without it, the DMV will not process the registration in the new owner's name, and the seller remains legally responsible for the vehicle.
The bill of sale protects both of you. It shows the sale price, the vehicle identification number (VIN), the date of sale, and the signatures of both parties. If something goes wrong later — the buyer stops paying a loan, the vehicle is in an accident, or the car is stolen — the bill of sale proves you are no longer the owner. For the buyer, it proves they own the vehicle and have the right to register it.
Most states do not have a single official DMV bill of sale form. Instead, you can use a generic bill of sale template, read one from your state's DMV website, or use one provided by a dealership or online service. The key is that it contains the required information and is signed by both parties in front of a witness or notary (depending on your state's rules).
Key Takeaways
- A bill of sale is a signed agreement between buyer and seller that shows the vehicle, the price, and the date of the transaction.
- Most states do not require a specific DMV form; you can use a template, but check your state DMV website to confirm what information must be included.
- Both the seller and buyer must sign the bill of sale, and some states require a witness or notary signature as well.
- The bill of sale must be presented to the DMV along with the title and registration documents when transferring ownership.
- Keeping a copy of the signed bill of sale protects you if disputes arise about the sale or the vehicle's condition after the transaction.
What information must be on the bill of sale
The bill of sale should include the vehicle's full identification: the year, make, model, color, and VIN. The VIN is the most important piece because it is unique to that vehicle and prevents confusion if you own multiple cars or if the buyer tries to register a different vehicle under the same paperwork.
Include the sale price and the date of the sale. Write out the price in both numbers and words (for example, "Five Thousand Dollars ($5,000)") to prevent disputes. If the sale included a trade-in, note that separately. If the buyer is assuming an existing loan, that should be stated clearly so the lender knows the vehicle has changed hands.
Both the seller and buyer must print their names, addresses, and signatures. Some states also require the seller to confirm that the vehicle has no outstanding liens (debts against it) — meaning no bank or lender has a claim to the car. If there is a lien, the seller must disclose it, and the lien must be paid off before the title can transfer to the buyer.
Where to find or create a bill of sale form
Your state's DMV website usually has a bill of sale template in the forms section, often labeled "Vehicle Bill of Sale" or "Motor Vehicle Bill of Sale." Search "[your state] DMV bill of sale" to find the official version. Using your state's form ensures you include everything the DMV requires and reduces the chance of rejection when you submit it.
If your state does not provide an official form, you can read a generic template from legal document websites or use one from the American Automobile Association (AAA) if you are a member. The template should ask for the vehicle details, sale price, date, and signatures of both parties. Do not leave any field blank — if something does not explore, write "N/A" so it is clear the field was not overlooked.
If you are buying or selling through a dealership, the dealership will usually provide the bill of sale as part of the paperwork package. Read it carefully to make sure all the details are correct before you sign. If you are doing a private sale, you are responsible for creating or obtaining the form.
Signature and witness requirements by state
Most states require both the seller and buyer to sign the bill of sale in front of a witness or notary public. A notary public is an official authorized by the state to witness signatures and verify identity. Some states accept a witness (any adult who is not a family member) instead of a notary, while others require a notary specifically.
A few states do not require a witness or notary at all — the buyer and seller can sign alone. However, having a notary sign is always safer because it adds an official record that the signatures are genuine. If a dispute arises later, a notarized bill of sale carries more weight than one signed without a witness.
Check your state DMV website or call the local DMV office to confirm whether a witness or notary is required. The cost of notarization is usually between $5 and $15 per signature, and you can find notaries at banks, UPS stores, law offices, and online notary services. Plan to get the bill of sale notarized before you submit it to the DMV.
How to submit the bill of sale to the DMV
The bill of sale is not submitted alone — it is part of a larger title transfer package. The buyer will submit the bill of sale along with the vehicle title (signed by the seller), a completed title transfer form, proof of insurance, and a completed registration process. The exact forms and documents vary by state, so check your state DMV website for the complete list before you go.
You can submit these documents in person at a DMV office, by mail, or online if your state offers that option. If you mail the documents, include a cover letter listing what you are sending, keep copies of everything for your records, and use certified mail so you have proof of delivery. Processing time is usually two to four weeks by mail, or same-day to a few days in person.
The seller should keep a copy of the signed bill of sale for their records. This proves they no longer own the vehicle and protects them if the buyer gets into an accident or incurs parking tickets before the title transfer is complete. The buyer should also keep a copy until the new title arrives from the state.
What happens if the bill of sale is missing or incomplete
If you submit a title transfer package without a bill of sale, or if the bill of sale is missing required information, the DMV will reject the entire package and return it to you. You will then have to correct the problem and resubmit, which delays the registration and leaves the seller at risk if something goes wrong with the vehicle in the meantime.
If a field is blank or illegible, the DMV may contact you to ask for clarification, but this is not may provide. It is safer to assume that incomplete paperwork will be rejected. Before you submit anything, read through the entire bill of sale and make sure every required field is filled in, legible, and signed.
If you have already sold the vehicle and did not create a bill of sale at the time, you and the buyer can still create one after the fact, as long as you both remember the sale price and date. However, this is riskier because it relies on memory and may raise questions at the DMV. Always create and sign the bill of sale on the day of the sale.
Private sale versus dealership bill of sale
A private sale bill of sale is created between you and the individual buyer or seller. You are responsible for obtaining the form, filling it out correctly, and getting it signed and notarized. The advantage is that you control the process and can use a form that matches your state's requirements exactly.
A dealership bill of sale is provided by the dealership and is usually already formatted to meet state requirements. The dealership handles much of the paperwork for you, including submitting documents to the DMV on your behalf (if you finance through them). The trade-off is that you have less control over the details and may pay a documentation or processing fee.
Whether you buy from a dealership or a private party, always read the bill of sale before signing. Confirm that the VIN, sale price, and your personal information are correct. If anything is wrong, ask for it to be corrected and initialed by both parties before you sign.
Frequently Asked Questions
Do I need a bill of sale if I am trading in my old car at a dealership?
No. The dealership handles the trade-in as part of the sale agreement, and they submit the paperwork to the DMV on your behalf. You will sign a bill of sale or purchase agreement that includes the trade-in value, but you do not need a separate bill of sale for the trade-in vehicle.
What if the buyer and I disagree on the sale price after we sign the bill of sale?
The signed bill of sale is the legal record of the agreed price. If you both signed it, that price is binding. If there was a misunderstanding, you would need to create a new bill of sale that both parties sign, but this is unusual and may raise questions at the DMV. Get the price in writing and agreed upon before you sign.
Can I sell a car without a bill of sale?
You can sell the car, but the buyer cannot register it in their name without a bill of sale. The DMV will not process the title transfer without proof of the sale. This leaves both of you at risk — the seller remains the legal owner, and the buyer has no proof they own the vehicle.
What if there is a lien on the vehicle I am selling?
You must disclose the lien on the bill of sale. The lien must be paid off before the title can transfer to the buyer. Usually, the lender will release the lien once the loan is paid, and you will receive a lien release document to submit to the DMV along with the bill of sale.
How long is a bill of sale valid?
A bill of sale does not expire, but it should be submitted to the DMV as soon as possible after the sale. If too much time passes, the DMV may question whether the sale actually occurred or may require additional documentation. Submit the title transfer package within 30 days of the sale to avoid complications.