A bill of sale is a written record that you and the other person sign to prove who owned the car and who owns it now
A bill of sale is a document that shows the sale happened: who sold the car, who bought it, when, for how much, and what vehicle it is. Both the seller and buyer sign it. 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 your proof that the transaction occurred, and it protects both of you if questions come up later about who owned the car on a particular date or what was agreed to at the time of sale.
You need a bill of sale whether you are buying from a private person or selling your own car. Dealers usually provide one, but private sales often do not, which is why you have to create one yourself. Many states do not legally require a bill of sale for private sales, but having one is far safer than not having one—it settles disputes about price, condition, and who is responsible for the car once the money changes hands.
Key Takeaways
- A bill of sale should include the date, the names and addresses of both the buyer and seller, the vehicle identification number (VIN), the year and make and model, the sale price, and the signatures of both parties.
- You can write a bill of sale by hand on plain paper or use a template from your state's motor vehicle department website, and either version is legally valid as long as both parties sign it.
- The seller should keep a copy to show they no longer own the car, and the buyer should keep a copy to show they own it until the title is transferred.
- A bill of sale does not transfer ownership—only the title does—but it proves the sale happened and protects you if the other person later claims they still own the car or that you owe them money.
What information must go on the bill of sale
The bill of sale needs to identify the car and the people involved so there is no confusion later. Write the date at the top. Then add the full legal name and current address of the seller and the full legal name and current address of the buyer. Do not use nicknames or abbreviations for names.
For the vehicle, write the year, make, model, and body style (sedan, truck, SUV, and so on). Include the vehicle identification number (VIN), which is a 17-character code stamped on the driver's side of the dashboard and also on the title. The VIN is the only way to prove you are talking about the exact car, not a similar one. Write the sale price in both numbers and words—for example, "$5,500 (five thousand five hundred dollars)"—so there is no argument about what was agreed to.
Add a line for the odometer reading at the time of sale. This is not legally required in all states, but it is useful to have on record. If the car has known damage, mechanical problems, or has been in an accident, you can note that too. For example: "Engine runs but transmission slips" or "Passenger door dent, does not affect operation." This protects the buyer by showing they knew about the condition when they bought it.
How to write or find a bill of sale template
You can write a bill of sale by hand on any piece of paper. There is no legal requirement for a specific form or format in most states. A handwritten bill of sale signed by both parties is as valid as a printed one. Write clearly so the information is straightforward to read, and leave space for signatures.
Many state motor vehicle departments publish a bill of sale template on their websites. Search "[your state] bill of sale" or go to your state's Department of Motor Vehicles website and look for forms or documents. Some states have an official form; others do not. If your state has one, using it can make the process smoother when you later register the car or transfer the title, because the information will already be in the format the state expects.
You can also find templates online from legal document sites, but make sure the template is for your state, because some states have specific wording or requirements. Read through any template before you use it to make sure it includes all the fields mentioned above and that nothing in it contradicts what you and the other person agreed to.
Who signs the bill of sale and when
Both the seller and the buyer must sign the bill of sale. The seller signs to confirm they owned the car and are selling it. The buyer signs to confirm they are buying it and agree to the price and condition. Sign in front of each other if you can, so you both know the other person actually signed it. If that is not possible, you can sign separately, but it is safer to do it together.
Sign the bill of sale at the time of the sale, when the money changes hands. Do not sign it before you have agreed on the price or before the buyer has seen the car. If you are the buyer, do not sign until you have inspected the car and confirmed the VIN and odometer reading match what is written on the document. If you are the seller, do not sign until you have received payment.
Some states allow a notary public to witness the signatures, which adds an extra layer of proof that both parties actually signed. Notarizing is not required in most states for a bill of sale, but it can be useful if you think there might be a dispute later. A notary charges a small fee, usually between $5 and $15, and you can find notaries at banks, UPS stores, and some government offices.
What happens to the bill of sale after the sale
Make at least two copies of the bill of sale before either person signs—one for the seller and one for the buyer. Both of you should sign both copies. The seller keeps one signed copy to prove they no longer own the car. The buyer keeps one signed copy to prove they own it until the title is transferred to their name.
The buyer will need the bill of sale when they go to register the car or transfer the title at the state motor vehicle office. Bring it along with the title, proof of insurance, and a valid ID. The bill of sale shows the state that you bought the car legally and from whom. If the title is in the seller's name and you are the buyer, the bill of sale is your proof of purchase until the title is officially transferred.
Keep your copy of the bill of sale for at least three to five years, even after the title is transferred. If a problem comes up later—for example, the seller claims they still own the car, or a lien holder tries to repossess it—the bill of sale is your proof of when and from whom you bought it and what you paid.
The difference between a bill of sale and a title
A bill of sale is a record of the transaction—proof that the sale happened. A title is the legal document that shows who owns the car. The title is issued by the state and has an official seal. Only the title transfers ownership. A bill of sale does not transfer ownership by itself.
When you buy a car, you sign the bill of sale to record the sale, but the seller still owns the car legally until the title is transferred to your name. The seller must sign the back of the title or fill out a transfer section, and you must submit that signed title to the state motor vehicle office along with the bill of sale, proof of insurance, and a registration fee. The state then issues a new title in your name.
Until the title is transferred, the seller is still the legal owner, even though you have paid for the car and have a bill of sale. This is why it is important to transfer the title quickly after the sale. If the car is in an accident or is towed before the title is transferred, the seller could be held liable because they are still the registered owner.
Common mistakes to avoid when writing a bill of sale
Do not leave blank spaces on the bill of sale. If you do not have information for a field, write "N/A" or "not applicable" so someone cannot fill it in later without your knowledge. Do not use white-out or cross out information and then initial it—rewrite the document if you make a mistake. A bill of sale with visible corrections can raise questions about whether it was altered after the fact.
Do not sign the bill of sale before you have agreed on all the terms, including the price and the condition of the car. Do not accept a bill of sale that lists a price different from what you actually paid—this can create tax or legal problems later. If you are the buyer, do not hand over money before both of you have signed the bill of sale.
Do not forget to include the VIN. A bill of sale without a VIN is almost useless because it does not prove which car was sold. Do not assume the seller will transfer the title on time—follow up with them if you do not see the title transfer within a few weeks. If the seller does not transfer the title, you may have to go to the motor vehicle office yourself and ask them to investigate.
Frequently Asked Questions
Can I use a bill of sale from online instead of writing one myself?
Yes. A template from your state's motor vehicle department website or a legal document site is fine as long as it includes all the required information and is specific to your state. Read it carefully before you use it to make sure it matches what you and the other person agreed to. A printed template that both parties sign is just as legal as a handwritten one.
What if the seller will not sign the bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the car, there may be a lien on it, or they are trying to hide something. A legitimate seller has no reason to refuse to sign a straightforward document that records a transaction that is already happening.
Do I need to notarize the bill of sale?
Notarizing is not required in most states, but it adds proof that both parties actually signed the document. If you think there might be a dispute later or if you are buying from someone you do not know well, notarizing is worth the small fee. A notary public can witness both signatures and stamp the document, which makes it harder to challenge later.
What if I lose my copy of the bill of sale after I buy the car?
Ask the seller for another copy. If you cannot reach them, you can request a copy from the state motor vehicle office once the title is transferred to your name, because they will have a record of the sale. Keep your copy in a safe place along with your title and registration documents.
Does the bill of sale need to be on a specific form or type of paper?
No. Plain paper, a printed template, or even a napkin is legally valid as long as it includes all the required information and both parties sign it. That said, using a clear, organized template makes the document easier to read and less likely to be questioned later.