A bill of sale is a document that proves you sold or bought a vehicle

A bill of sale is a written record that you and another person exchanged a vehicle for money or other value. It shows who owned the vehicle before, who owns it now, and usually the date and price. Most states do not require a bill of sale by law, but the DMV in your state may ask for one when you register the vehicle in the new owner's name, and it protects both the buyer and seller if something goes wrong later.

The bill of sale is separate from the vehicle title — the title is the legal proof of ownership that the state issues, while the bill of sale is the record of the transaction itself. You create the bill of sale yourself or use a template; the DMV does not issue it. When you sell a vehicle, keeping a copy protects you from liability if the buyer gets into an accident or breaks the law with the car. When you buy a vehicle, it proves what you paid and that the seller agreed to transfer ownership.

Key Takeaways

  • A bill of sale documents the sale of a vehicle between two people and is created by the seller and buyer, not issued by the DMV.
  • Most states do not legally require a bill of sale, but some DMVs request one during registration, and it protects both parties from future disputes.
  • The bill of sale should include the vehicle identification number (VIN), the date of sale, the price paid, and the signatures of both the seller and buyer.
  • You should keep a copy of the bill of sale even after the title transfer is complete, because it serves as proof of when you no longer owned the vehicle.

What information goes on a bill of sale

A bill of sale should include the vehicle's full identification details, the names and addresses of both the seller and buyer, the date of the sale, and the amount paid. The most important piece is the vehicle identification number (VIN), which is a 17-character code unique to that vehicle. You can find the VIN on the dashboard, the driver's side door jamb, or the title document itself.

Both the seller and buyer should sign and date the bill of sale. Some states have a specific form or format they prefer, while others accept any written record that includes the key details. A few states — including Georgia, Illinois, Kentucky, and Missouri — have official bill of sale forms you can read from the DMV website, but using these is optional unless your state's DMV specifically requires it. If your state does not have an official form, a straightforward document with the VIN, names, date, price, and signatures is sufficient.

You do not need to notarize a bill of sale in most states, though some sellers choose to do so for extra protection. Notarization costs a small fee but creates an official record that a notary public witnessed the signatures.

When the DMV asks for a bill of sale during registration

Some state DMVs request a bill of sale when you register a vehicle you just bought, especially if the price seems unusually low or if the vehicle is being registered in a different state than where it was sold. The DMV uses the bill of sale to verify that the sale actually happened and to calculate sales tax if your state taxes vehicle purchases.

If you bought the vehicle from a private seller and did not create a bill of sale at the time, you can still write one after the fact. Both the seller and buyer should sign it, and you should note on it that it is being created after the sale. The DMV will usually accept a retroactive bill of sale, though you may need to explain why it was not created during the original transaction. If the seller is unwilling or unavailable to sign, contact your local DMV office to ask what documentation they will accept instead — some offices will work with a signed statement from the buyer alone, a receipt, or a text message exchange that shows the terms of the sale.

Protecting yourself as a seller with a bill of sale

When you sell a vehicle, a bill of sale creates a dated record that you no longer owned it. This protects you if the buyer gets a traffic ticket, is in an accident, or breaks the law with the vehicle after you sold it. Without a bill of sale, the police or a court might still consider you the owner based on the title, even though you sold it weeks or months earlier.

Keep a copy of the signed bill of sale in your records, and consider sending a copy to the buyer by email or text so you both have proof. Some sellers also notify their insurance company and the DMV in writing that they have sold the vehicle, though this is not required in most states. A few states allow you to file a notice of sale with the DMV, which officially removes you from liability for the vehicle. Check your state DMV's website to see if this option is available where you live.

Do not sign over the title until you have the bill of sale signed by both parties and the payment has cleared. If you accept a personal check, wait for it to clear before handing over the keys and title.

Protecting yourself as a buyer with a bill of sale

As a buyer, the bill of sale proves what you paid for the vehicle and that the seller agreed to transfer ownership. This matters if a dispute arises later — for example, if the seller claims you still owe money, or if the vehicle has a lien (a loan against it) that was not disclosed. The bill of sale is your proof of the agreed price and terms.

Before you sign the bill of sale, make sure the VIN on the document matches the VIN on the vehicle itself and on the title. Check that the seller's name on the bill of sale matches the name on the title. Ask the seller to disclose any outstanding loans or liens on the vehicle, and do not complete the purchase until those are paid off or you understand how they will be handled. Some private sales fall through because the seller still owes money to a lender, and the lender has a legal claim to the vehicle.

Keep your copy of the signed bill of sale with your other vehicle documents. When you register the vehicle in your name, bring the bill of sale to the DMV along with the title and proof of insurance.

State-specific bill of sale rules and forms

Most states do not require a bill of sale by law, but a few states request or prefer one. Some states have an official form you can read and print, while others accept any written document. A handful of states include a bill of sale section on the back of the title form itself, so the transaction is recorded in one place.

A few states with official forms include Georgia (Form T-7), Illinois (Form VSD 190), Kentucky (Form TC 96-182), and Missouri (Form 108). You can find these forms on each state's DMV website. Even if your state does not have an official form, using a template from your state DMV website or a legal document service is a good idea because it ensures you include all the information your state's DMV might ask for.

If you are buying or selling a vehicle across state lines, use the bill of sale form from the state where the vehicle will be registered, not the state where the sale took place. This ensures the document meets the requirements of the DMV that will process the registration.

What to do if you lost your bill of sale

If you sold a vehicle and no longer have a copy of the bill of sale, contact the buyer and ask them to send you a copy or to sign a new one. If you cannot reach the buyer, write a statement explaining when and to whom you sold the vehicle, sign it, and keep it with your records. This is not as strong as a signed bill of sale, but it creates a dated record that you attempted to document the sale.

If you bought a vehicle and lost your copy of the bill of sale, ask the seller for another signed copy. If the seller is unavailable, the bill of sale is less critical for you than for the seller, because the title in your name is the primary proof of ownership. However, keep any receipt, email, or text message that shows the terms of the sale, because these can serve as backup documentation if a dispute arises.

Frequently Asked Questions

Do I have to notarize a bill of sale?

No, notarization is not required in most states. A bill of sale is valid when both the seller and buyer sign and date it. Some people choose to notarize for extra legal protection, but it costs a small fee and is optional unless your state's DMV specifically requires it.

Can I use a bill of sale from online or a template?

Yes, you can use a template from your state DMV website, a legal document service, or even a straightforward document you write yourself, as long as it includes the VIN, the date, the price, and both signatures. Check your state DMV website first to see if they have a preferred form or format.

What if the seller will not sign a bill of sale?

A seller who refuses to sign a bill of sale is a red flag. Do not complete the purchase without one, because you will have no proof of the sale or the agreed price. If the seller is unwilling, walk away from the deal or contact your state's consumer protection office for guidance.

Is a bill of sale the same as a title?

No. A bill of sale is a record of the transaction between buyer and seller. A title is the legal document issued by the state that proves who owns the vehicle. You need both: the bill of sale to document the sale, and the title to prove ownership.

Can I register a vehicle without a bill of sale?

In most states, yes — a bill of sale is not legally required. However, some DMVs request one during registration, especially for private sales. If your DMV asks for one and you do not have it, ask what other documents they will accept, such as a receipt or a written statement from the seller.