What a bill of sale is and why you need one

A bill of sale is a written record that you sold your car to someone else on a specific date for a specific price. It names the seller, the buyer, describes the vehicle, and states the sale price. Both parties sign it. The bill of sale protects you by proving you no longer own the car — it shows the new owner accepted it in its current condition, and it documents when ownership changed hands.

Without a bill of sale, you remain the registered owner in the eyes of the state until the new owner registers the vehicle in their name. That means you could be liable for parking tickets, tolls, accidents, or traffic violations the new owner racks up after the sale. A bill of sale is your proof that you transferred the car and the buyer accepted it.

A bill of sale is not the same as a title. The title is the legal document the state issues proving ownership. The bill of sale is a private agreement between you and the buyer that documents the transaction itself. Many states require you to submit a bill of sale to the DMV when you transfer the title, or the new owner must submit it when they register the car.

Key Takeaways

  • A bill of sale documents that you sold the car, who bought it, when, and for how much — and protects you from liability after the sale.
  • Your state's DMV website usually has a free bill of sale form, or you can read a generic template and fill it in by hand.
  • Both the seller and buyer must sign the bill of sale in front of a witness or notary public, depending on your state's rules.
  • Keep a copy for your records and give the original to the buyer; they will need it when they register the vehicle.
  • A bill of sale does not transfer the title — it only documents the sale; the title transfer happens separately through your state's DMV.

Where to find a free bill of sale form for your state

Most states provide a free bill of sale form on their DMV website. Go to your state's DMV homepage, search for "bill of sale" or "vehicle sale form," and read the PDF. Some states call it a "Notice of Sale," "Affidavit of Sale," or "Vehicle Transfer Form." The form is usually one page and asks for the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the make and model, the year, the odometer reading, the sale price, and the date of sale.

If your state does not provide an official form, you can use a generic bill of sale template from a reputable source. The template should include all the fields listed above. Print it out, fill it in by hand or on a computer, and have both parties sign it. A handwritten bill of sale is legally valid in all states as long as it contains the essential information and both parties sign it.

Some states require specific language or notarization. Before you fill in the form, check your state's DMV website for any special rules about bill of sale requirements — for example, whether a witness or notary must be present when you sign, or whether the form must be filed with the DMV before or after the sale.

What information to include on the bill of sale

Fill in every field on the form completely and legibly. The buyer will need this information to register the car, and the DMV will use it to update its records. Here is what must be on the bill of sale: the full legal name and address of the seller, the full legal name and address of the buyer, the vehicle's VIN (found on the dashboard or title), the year, make, and model of the car, the current odometer reading, the sale price in dollars, and the date of sale.

Some forms also ask for the condition of the vehicle (for example, "sold as-is"), whether there are any liens on the title, and the reason for the sale. If the car has a lien — meaning a bank or lender still has a claim on it — you must disclose that on the bill of sale. The buyer needs to know before they buy. If there is a lien, the lender must release it before the title can be transferred to the new owner.

Do not leave any fields blank. If a field does not explore, write "N/A" or "none." Incomplete forms can delay the buyer's registration or cause the DMV to reject the paperwork. Use the exact VIN and odometer reading from the title or the car itself — these must match what the buyer sees when they register the vehicle.

How to sign and witness the bill of sale

Both the seller and the buyer must sign the bill of sale. In most states, you can sign it in front of each other without a witness present. However, some states require a witness or notary public to be present when you sign. Check your state's DMV website to see whether a witness is required, and if so, whether the witness must be a notary public or just any adult.

If a witness is required, have the witness watch both of you sign, then have the witness sign and print their name and address on the form. If a notary is required, take the form to a notary public (usually available at banks, UPS stores, or your local courthouse) and have the notary witness both signatures and notarize the document. The notary will stamp and sign the form. There is usually a small fee — typically $5 to $15 — for notarization.

Sign the bill of sale in blue or black ink. Do not use pencil. Print your full legal name next to your signature. If the buyer is not present when you sign, you can still sign the form and have the buyer sign it later, as long as both signatures are on the same document before it is submitted to the DMV or given to the buyer for registration.

What happens after you sign the bill of sale

Make a copy of the signed bill of sale for your records before you hand it over. Keep this copy in a safe place — you may need it later if a question arises about when you sold the car or what condition it was in. Give the original signed bill of sale to the buyer. They will need it when they go to the DMV to register the vehicle in their name.

In some states, you must also submit a copy of the bill of sale to the DMV yourself, usually along with a form called a "Notice of Sale" or "Release of Liability." This form tells the state that you no longer own the car and removes you from liability for anything that happens to it after the sale date. Check your state's DMV website for the exact procedure and important date — some states require you to file within 10 days of the sale, while others have longer windows.

The buyer will take the bill of sale and the title to the DMV to register the car in their name. The DMV will check that the VIN and sale price match the title, and then issue a new title with the buyer's name on it. Until that happens, you remain the registered owner, so file your notice of sale promptly to protect yourself.

Common mistakes to avoid when filling out a bill of sale

The most common mistake is leaving fields blank or writing information that does not match the title or the car itself. The VIN, year, make, and model must be exactly as they appear on the title. If the odometer reading on the bill of sale does not match the odometer in the car, the DMV may flag it as a potential odometer fraud case. Write the odometer reading as it appears on the car's dashboard at the time of sale.

Another mistake is not disclosing liens or damage. If the car has a lien and you do not mention it, the buyer may discover later that they cannot register it or sell it without paying off the lien first. If the car has major damage or mechanical problems, write "sold as-is" on the bill of sale to show that the buyer accepted it in its current condition. This protects you from claims that you misrepresented the vehicle.

Do not accept a bill of sale that lists a price lower than what you actually agreed on. Some sellers and buyers do this to lower the sales tax the buyer has to pay, but it is tax fraud and can result in fines or criminal charges for both parties. Write the actual sale price on the bill of sale, even if you agreed to accept payment in cash or installments.

Frequently Asked Questions

Can I write a bill of sale by hand, or does it have to be typed?

A handwritten bill of sale is legally valid in all states as long as it is legible, contains all the required information, and both parties sign it. You do not have to use an official form or type it on a computer. However, typed forms are easier to read and less likely to cause problems at the DMV, so typing is recommended if you have access to a computer and printer.

What if the buyer does not show up to sign the bill of sale?

You can sign the bill of sale yourself and have the buyer sign it separately, as long as both signatures end up on the same document before the buyer registers the car. However, it is safer to sign together so you both have a copy and can confirm the details match. If the buyer refuses to sign, do not hand over the keys or title until they do.

Do I need to notarize the bill of sale?

Notarization is required in some states but not others. Check your state's DMV website to see whether a notary or witness is required. If it is required and you do not notarize the form, the DMV may reject it when the buyer tries to register the car, delaying their registration and creating problems for you.

What if I sell the car to a private buyer and they never register it?

If you file a notice of sale with the DMV, you are protected from liability even if the buyer never registers the car. However, you remain the registered owner until the buyer registers it in their name. If the buyer gets into an accident or racks up parking tickets before registering, you could still be contacted. Filing the notice of sale removes you from liability as soon as the state processes it, usually within a few weeks.

Can I use a bill of sale instead of transferring the title?

No. A bill of sale documents the sale, but it does not transfer ownership. The title must be transferred through the DMV. You sign the back of the title (or fill out a separate title transfer form, depending on your state) and give it to the buyer. The buyer then takes the title and bill of sale to the DMV to register the car in their name. Without a title transfer, the buyer does not legally own the car.