A bill of sale is a written record that you and the seller (or buyer) sign to document the transfer of a vehicle
A bill of sale is a document that proves one person sold a vehicle to another person on a specific date for a specific price. It lists the vehicle's details — make, model, year, VIN, odometer reading — and the names and signatures of both the seller and buyer. Some states require it; others don't. Even when it's not required by law, having one protects both parties by creating a paper trail that shows who owned the vehicle and when the ownership changed hands.
The bill of sale is separate from the vehicle title, which is the legal proof of ownership filed with your state's motor vehicle department. You need both documents to complete a sale properly. The bill of sale is what you create and exchange at the time of sale; the title is what gets transferred through your state's system afterward.
Key Takeaways
- A bill of sale documents the date, price, and vehicle details of a private vehicle sale between two people.
- Some states require a bill of sale by law; others make it optional but strongly recommended for your protection.
- You can use a state-specific form, a generic template, or create your own as long as it includes the vehicle VIN, odometer reading, sale price, and both signatures.
- The bill of sale protects both buyer and seller by creating proof of the transaction if disputes arise later.
- A bill of sale is not the same as a title transfer — you need both documents to complete a vehicle sale.
When your state requires a bill of sale
Requirements vary by state. Some states — including Georgia, Illinois, Missouri, and North Carolina — require a bill of sale before you can transfer the title. Other states, like California and Florida, don't require one by law but recommend it. A few states have no requirement at all.
The best way to know what your state requires is to visit your state's motor vehicle department website and search for "bill of sale" or "vehicle sale requirements." You can also call the department directly and ask whether a bill of sale is required to transfer the title. If it is required and you don't have one, the title transfer will be rejected.
What information must be on a bill of sale
A bill of sale should include the vehicle's full identification number (VIN), the make, model, and year, the current odometer reading, and the sale price. It must show the date of the sale and include the printed names and signatures of both the seller and the buyer. Some states also ask for the addresses of both parties and the condition of the vehicle (for example, "as-is" or "with warranty").
If the vehicle has a lien — meaning a lender still owns part of it — the bill of sale should note that fact. This tells the buyer that the seller cannot transfer clear title until the loan is paid off. The buyer should never sign a bill of sale for a vehicle with an outstanding lien unless they understand and accept that responsibility.
Where to get a bill of sale form
Your state's motor vehicle department often provides an official bill of sale form on its website, usually as a free PDF you can read and print. This is the safest option because it meets your state's exact requirements. Search "[your state] motor vehicle bill of sale form" to find it.
If your state doesn't provide an official form, you can use a generic template from a reputable source or create your own. The document doesn't have to be fancy — it just needs to include all the required information and be signed by both parties. Some people use a straightforward letter format. What matters is that it's clear, complete, and signed.
You can also find templates through the American Automobile Association (AAA) or through legal document services, though these are not state-specific and may not include everything your state requires. Always cross-check any template against your state's requirements before you use it.
How to fill out and sign a bill of sale
Print the form or document and fill in all the blanks by hand or type. Use the vehicle's actual VIN from the title or registration, not from memory. Write out the odometer reading exactly as it appears on the dashboard. Enter the actual sale price — not a lower amount to reduce taxes, as this is fraud and can void the document's legal protection.
Both the seller and buyer should sign and print their names on the form. Some states require the signatures to be notarized, meaning a notary public must witness the signing and stamp the document. Check your state's requirements to see if notarization is needed. If it is, you can get a document notarized at a bank, UPS store, or notary service for a small fee.
Make at least two copies — one for the seller and one for the buyer. Keep your copy in a safe place. If you're the buyer, hold onto it until the title transfer is complete. If you're the seller, keep it as proof that you no longer own the vehicle, in case questions arise later.
What happens after you sign a bill of sale
Once both parties have signed, the buyer typically takes the bill of sale and the signed title to the state motor vehicle department to transfer ownership. The seller should not take the vehicle to the department — the buyer does. The buyer will pay a transfer fee (the amount varies by state) and submit the required documents. The state will then issue a new title in the buyer's name.
The seller's job is done once the bill of sale is signed and the buyer has taken possession of the vehicle. However, the seller should not remove the license plates or cancel the registration until the title transfer is complete. In some states, the seller can request a release of liability form from the motor vehicle department to formally notify the state that they no longer own the vehicle. This protects the seller if the vehicle is involved in an accident or traffic violation after the sale.
Why both buyer and seller should have a bill of sale
A bill of sale protects the seller by proving they sold the vehicle on a specific date and are no longer responsible for it. If the buyer gets a traffic ticket or is in an accident after the sale, the seller has proof they no longer owned the vehicle. Without a bill of sale, the seller could face liability or legal questions about when they stopped owning it.
A bill of sale protects the buyer by proving they purchased the vehicle and from whom. If a dispute arises about the condition of the vehicle, the price, or the sale itself, the bill of sale is evidence of what was agreed to. It also proves the buyer's ownership claim if questions come up later.
Common mistakes to avoid when creating a bill of sale
Don't leave blanks. Fill in every field, even if it means writing "unknown" or "not applicable." A blank field can make the document look incomplete or raise questions later. Don't use a lower sale price than what was actually paid to reduce taxes — this is fraud and can invalidate the document's legal protection. Don't forget the VIN or odometer reading; these are the details that identify the specific vehicle and prevent confusion.
Don't sign the bill of sale before both parties have reviewed it and agreed to all the terms. Don't assume a bill of sale from another state will work in your state — always check your state's specific requirements first. And don't throw away your copy after the sale is complete. Keep it for at least a few years in case you need to prove the transaction later.
Frequently Asked Questions
Do I need a bill of sale if I'm selling a car to a family member?
Yes. Even though you know and trust the person, a bill of sale protects both of you by documenting the transaction. It shows the state that ownership changed hands on a specific date and for a specific price, which matters if the vehicle is involved in an accident or traffic violation after the sale. Your state's requirements don't usually make exceptions for family sales.
What if the seller won't sign a bill of sale?
Don't buy the vehicle. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the vehicle, may owe money on it, or may be trying to hide something. A legitimate seller has no reason to refuse. Walk away from the deal.
Can I use a bill of sale from a different state?
Not reliably. Each state has different requirements for what must be on a bill of sale and whether it needs to be notarized. Using a form from another state may not meet your state's requirements, and the motor vehicle department could reject it when you try to transfer the title. Always use your state's official form or check your state's requirements before using a generic template.
Is a bill of sale the same as a title?
No. A bill of sale is a record of the sale transaction. A title is the legal document that proves ownership and is filed with your state. You need both to complete a vehicle sale. The bill of sale documents that the sale happened; the title transfer documents that ownership has changed in the state's system.
What if I lost my copy of the bill of sale after the sale?
Contact the other party and ask for another copy. If you can't reach them, you may be able to request a copy from your state's motor vehicle department if they keep records of bill of sale filings. However, not all states keep these records, so it's best to keep your original copy in a safe place for several years after the sale.