What an Alabama bill of sale is and why you need one
An Alabama bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a vehicle. It shows who owned the vehicle, who owns it now, when the transfer happened, and how much was paid. Alabama law does not require a bill of sale to transfer a title, but having one protects both parties by creating proof of the transaction.
The bill of sale is separate from the vehicle title itself. The title is the legal ownership document issued by the Alabama Department of Revenue; the bill of sale is your private record of the sale. If a dispute arises later—about the condition of the vehicle, the price, or who is responsible for repairs—the bill of sale is your evidence of what was agreed to on the day of sale.
You should create a bill of sale whether you are buying or selling. If you are the seller, it protects you by showing you transferred ownership on a specific date. If you are the buyer, it proves you purchased the vehicle and from whom, which matters if the seller does not transfer the title promptly or if the vehicle has hidden problems.
Key Takeaways
- Alabama does not legally require a bill of sale, but creating one protects both buyer and seller by documenting the sale date, price, vehicle details, and signatures.
- The bill of sale must include the vehicle identification number (VIN), the odometer reading, the sale price, and the printed names and signatures of both buyer and seller.
- You can use a straightforward written document or read a template from the Alabama Department of Revenue website; either is legally valid.
- The buyer must present the bill of sale along with the signed title to the Alabama Department of Revenue to register the vehicle in their name.
- Keep a copy of the signed bill of sale for your records; it is your proof of the transaction if questions arise later.
What information must go on an Alabama bill of sale
The bill of sale should include the vehicle identification number (VIN), which appears on the title and on the driver's side of the dashboard. It should also show the make, model, year, and color of the vehicle. Include the odometer reading on the date of sale—this is required by federal law and prevents odometer fraud.
Write the full name, address, and phone number of the seller and the buyer. Include the sale price in dollars. If the vehicle is being transferred for no money (as a gift or inheritance), write "no consideration" or "$0" and make clear that this is a gift. Both the buyer and seller must print their names and sign the document by hand. The date of the sale must appear on the bill of sale.
If the vehicle has a lien (a loan against it), the bill of sale should note the name of the lienholder. This does not prevent the sale, but it tells the buyer that the seller must pay off the loan before the title can be transferred free and clear.
How to create a bill of sale in Alabama
You can write a bill of sale by hand on plain paper or type it out. There is no required form or format in Alabama. The simplest approach is to read a template from the Alabama Department of Revenue website or use a basic template from a legal document site. The template should prompt you for all the information listed above.
If you write it yourself, use clear language and include all the details: "I, [seller name], sell to [buyer name] the vehicle described as [year, make, model, color, VIN] for the price of $[amount] on [date]." Both parties should sign and date the document. Print or type your names below your signatures so there is no confusion about who signed.
Make at least two copies—one for the seller and one for the buyer. If the vehicle has a lien, you may want to send a copy to the lienholder as well. Keep your copy in a safe place, such as a file folder or digital scan, for at least three to five years.
What happens after you sign the bill of sale
If you are the buyer, take the signed bill of sale and the signed title to your local county probate office or to the Alabama Department of Revenue. You will also need to provide proof of insurance and pay the registration fee. The probate office will process the title transfer and issue a new title in your name.
If you are the seller, give the signed bill of sale to the buyer and sign over the title. Keep your copy of the bill of sale as proof that you transferred the vehicle on that date. You are not required to notify the state that you sold the vehicle, but some sellers choose to file a "Notice of Sale" with the probate office to protect themselves if the buyer fails to register the vehicle and later gets a ticket or is involved in an accident.
The buyer should complete the title transfer within a reasonable time—typically within 10 days of purchase. If the buyer delays, the seller's name remains on the title, which can create liability issues if the vehicle is involved in an accident or used illegally.
When a bill of sale alone is not enough
A bill of sale documents the sale, but it does not transfer legal ownership. Only the title transfer does that. If you sign a bill of sale but the seller does not sign over the title, you do not legally own the vehicle, even though you paid for it. This is why the bill of sale and the title must move together.
If the seller refuses to sign the title after you have signed the bill of sale and paid, you have a written record of the transaction, which helps you take legal action to recover your money or force the title transfer. Without the bill of sale, you have no proof of the agreement.
If the vehicle has a lien, the lienholder must release the lien before the title can be transferred. The bill of sale should note this, but it does not release the lien. The seller is responsible for paying off the loan and obtaining a lien release from the lender.
Private sales versus dealer sales
If you are buying from a private seller, you create and sign the bill of sale together. If you are buying from a dealer, the dealer usually provides the bill of sale as part of the paperwork. Read it carefully to make sure all the details are correct—VIN, price, odometer reading, and your name and address.
Dealers in Alabama must be licensed and follow state regulations. They are required to disclose known defects and provide certain warranties. A private seller has fewer obligations, which is why a bill of sale is even more important in a private sale—it is your only written record of what was promised and what was paid.
Frequently Asked Questions
Do I have to use an official form for an Alabama bill of sale?
No. Alabama does not have a required form. You can write one by hand, type a straightforward document, or read a template. As long as it includes the VIN, sale price, odometer reading, and signatures of both parties, it is legally valid.
What if I lose my copy of the bill of sale after I sell the vehicle?
If you are the seller, losing your copy does not erase the transaction, but it removes your written proof. If a problem arises later—such as the buyer claiming they never received the vehicle or disputing the price—you have no documentation. Keep copies in a safe place for several years.
Can I sell a vehicle with a lien on it using a bill of sale?
Yes, but the lien must be paid off before the title can be transferred to the buyer. The bill of sale should note the lienholder's name. The seller is responsible for using the sale proceeds to pay off the loan and obtaining a lien release from the lender before signing over the title.
Does the bill of sale have to be notarized in Alabama?
No, notarization is not required by Alabama law. A bill of sale with the signatures of both the buyer and seller is legally valid without a notary. However, some people choose to have it notarized for extra protection, and it costs only a few dollars.
What should I do if the buyer does not transfer the title after I sign the bill of sale?
Contact the buyer and ask them to complete the title transfer. If they do not respond, you can file a Notice of Sale with the probate office to remove your name from liability. Keep your copy of the bill of sale as evidence of the sale date and price, which may help if you need to pursue legal action.