What a California bill of sale is and when you need one
A bill of sale is a document that proves you sold or bought a vehicle. In California, it records the sale price, the vehicle details, and the signatures of both the seller and buyer. The California DMV does not require a bill of sale to transfer a title — the title transfer itself is the legal record — but having one protects both parties by documenting the transaction date, price, and condition of the vehicle at the time of sale.
You need a bill of sale when you sell a car privately (not through a dealer). It becomes your proof that the sale happened, which matters if a dispute arises later about who owned the vehicle on a specific date, or if the buyer gets into an accident before registering it in their name. The seller uses it to show they no longer own the car; the buyer uses it to show they purchased it legitimately.
California does not have a single official DMV bill of sale form, but the state recognizes any written agreement that includes the required information. Many sellers and buyers use templates from the California DMV website, legal document services, or straightforward write one themselves.
Key Takeaways
- California does not require a bill of sale to transfer a vehicle title, but one protects both buyer and seller by documenting the sale date, price, and vehicle condition.
- A valid California bill of sale must include the vehicle identification number (VIN), sale price, odometer reading, date of sale, and signatures of both buyer and seller.
- You can use a template from the California DMV website, a legal document service, or write your own as long as it contains all required information.
- The bill of sale is separate from the title transfer form (REG 262) and does not go to the DMV — you and the buyer keep copies for your records.
What information must be on a California bill of sale
A bill of sale in California must include the vehicle's VIN (Vehicle Identification Number), the year, make, and model. It must also show the sale price in dollars, the odometer reading at the time of sale, and the date of the transaction. Both the seller and buyer must sign and print their names.
You should also include the seller's address and the buyer's address. If the vehicle has a lien (a loan against it), the bill of sale should note the lienholder's name and the loan payoff amount. This prevents confusion if the buyer later discovers the car is not free and clear.
The condition of the vehicle — whether it is sold "as-is" or with any warranties — should be stated clearly. For example, "sold as-is, no warranties" or "seller warrants vehicle runs and drives." This protects the seller from later claims that the vehicle was misrepresented.
How to get a bill of sale template
The California DMV website offers a bill of sale template that you can read and print. Search the DMV site for "bill of sale" and you will find a PDF you can fill out by hand or type into. This template includes all the fields California recognizes as valid.
If you prefer a digital option, legal document services like LegalZoom, Rocket Lawyer, and Nolo offer California-specific bill of sale templates, usually for a small fee. These are pre-formatted and often include guidance on what to write in each field.
You can also write a bill of sale yourself on plain paper as long as it includes all required information and is signed by both parties. There is no legal requirement to use a specific form or template — the content matters, not the format.
Filling out the bill of sale correctly
Start by entering the vehicle's complete VIN, which you will find on the title, registration, or the driver's side dashboard. Write the year, make, model, and color. Then enter the exact sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to prevent disputes about the amount.
Record the odometer reading as it appears on the instrument cluster at the time of sale. This is required by California law and protects the buyer by documenting the mileage at purchase. Write the date of sale in month/day/year format.
Both the seller and buyer must sign the bill of sale in front of each other. Signatures do not need to be notarized in California, though some buyers request it for extra protection. Print your full legal names below your signatures. If there are multiple sellers or buyers, all must sign.
What happens after you sign the bill of sale
The bill of sale does not go to the DMV. You and the buyer each keep a copy for your records. The buyer will use their copy when they go to the DMV to register the vehicle in their name and transfer the title. The seller keeps their copy as proof that they no longer own the vehicle.
The actual title transfer happens through the California DMV using form REG 262 (process for Title or Registration). The buyer submits this form along with the signed title, proof of insurance, and payment of transfer fees. The bill of sale is supporting documentation that shows the transaction was legitimate, but it is not the transfer form itself.
If you are the seller, keep your copy of the bill of sale until the buyer has registered the vehicle in their name. If the vehicle is involved in an accident or crime before the registration transfers, you will need proof that you sold it — that is what the bill of sale provides.
Selling a vehicle with a loan against it
If you still owe money on the car, the bill of sale must note the lienholder (usually a bank or credit union) and the loan balance. The buyer needs to know the vehicle is not free and clear, and the lienholder must be paid off before the title can transfer to the buyer's name.
The typical process is that the buyer's lender pays off your loan directly, and then the title transfers to the buyer. Your bill of sale should state something like "Vehicle subject to lien held by [Bank Name], loan balance approximately $[amount]." This is not a legal problem — it just means the transaction requires an extra step.
Make sure the buyer understands they cannot take ownership until the lien is cleared. If you are financing the sale yourself (the buyer is paying you over time), the bill of sale should clearly state the payment terms and that the title will transfer only after the final payment is made.
Common mistakes to avoid when writing a bill of sale
Do not leave the sale price blank or write "cash" without a dollar amount. The DMV and courts need a specific number to validate the transaction. Similarly, do not skip the odometer reading — California law requires it, and it protects both parties.
Do not sign the bill of sale unless both buyer and seller are present and agree to all terms. A bill of sale signed by only one party is not valid proof of a transaction. If you are selling remotely, have the buyer sign a copy and return it to you before you sign yours, or use a notary service to verify signatures.
Do not assume the bill of sale transfers the title. It does not. The title transfer is a separate DMV process. The bill of sale is evidence that the sale happened; the REG 262 form is what actually transfers ownership at the DMV.
Frequently Asked Questions
Does California require a notarized bill of sale?
No, California does not require notarization. Both parties' signatures are enough. However, some buyers request notarization for extra protection, and it does not hurt to have it done. A notary public can verify your identities and witness your signatures for a small fee, usually $10 to $20.
What if I lost the bill of sale after I sold the car?
If you are the seller and lost your copy, you can ask the buyer for another copy, or you can contact the DMV to request a record of the title transfer once it is processed. The DMV keeps records of all registered vehicles. If you need proof you sold the car, the registration records will show the current owner.
Can I use a bill of sale from another state?
You should use a California bill of sale because it includes California-specific requirements like odometer disclosure. A bill of sale from another state may not include all the information California recognizes as valid. It is safer and simpler to use a California template.
Do I need a bill of sale if I am trading in my car at a dealership?
No. Dealerships handle the paperwork themselves and do not use a bill of sale. The dealership will have you sign the title and their own trade-in forms. A bill of sale is only for private sales between individuals.
What if the buyer and I disagree on the sale price after we sign?
The bill of sale is a binding record of the price you both agreed to on the date of sale. If a dispute arises later, the bill of sale is the legal evidence of what was agreed. This is why it is important to make sure both parties understand and agree to the price before signing.