What a bill of sale is and why Illinois requires one
A bill of sale is a written record that you and the buyer (or seller) sign to document the sale of a vehicle. In Illinois, it serves as proof of the transaction and protects both parties by creating a dated record of who owned the car, when the ownership changed, and for how much money. The state does not require a bill of sale to transfer title at the Secretary of State, but you should create one anyway — it becomes your only proof of the sale if a dispute arises later, and it protects you from liability if the buyer gets into an accident or racks up parking tickets after you sell the car.
The bill of sale is separate from the title document itself. The title is the official state record of ownership; the bill of sale is the private agreement between you and the other party. You will need both to complete a legal sale in Illinois.
Key Takeaways
- A bill of sale documents the sale price, vehicle details, and the date of transfer, and both the seller and buyer must sign it.
- Illinois does not have an official state bill of sale form, so you can use a template from the Secretary of State website, a private form, or write one yourself as long as it includes the required information.
- The bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, names and addresses of both parties, and the date of sale.
- Keep a copy for your records after the sale; if you are the seller, this protects you if the buyer later causes damage or incurs violations in your name.
- The bill of sale is not filed with the state, but you will need it when you and the buyer go to the Secretary of State to transfer the title.
What information must go in an Illinois bill of sale
An Illinois bill of sale must include the vehicle identification number (VIN), which you can find on the dashboard or on your current title. It must also show the odometer reading at the time of sale — this is a federal requirement and protects against odometer fraud. Include the full names and addresses of both the seller and the buyer, the sale price (write the dollar amount in both numbers and words to prevent tampering), the date of the sale, and a description of the vehicle including the year, make, model, and color.
Both the seller and buyer must sign and date the bill of sale. Some people also include the vehicle's condition at the time of sale (for example, "sold as-is" or a list of known mechanical issues), though this is optional. If the vehicle has a lien on it — meaning a bank or lender still owns part of it — that should be noted on the bill of sale as well, along with the lender's name and the payoff amount if known.
Where to find a bill of sale template
The Illinois Secretary of State does not publish an official bill of sale form, but the office provides a sample template on its website under the title and registration section. You can read and print this template, fill in the blanks, and use it for your transaction. The template includes all the required fields and is formatted in a way that the Secretary of State's office will recognize.
If you prefer not to use the state template, you can use a bill of sale form from a private source — many online legal document services and automotive websites offer free templates. You can also write your own bill of sale from scratch, as long as it includes all the required information listed above. The state does not mandate a specific format, only that the document contains the necessary details and is signed by both parties.
How to fill out and sign the bill of sale
Print two copies of the bill of sale — one for the seller and one for the buyer. Fill in all the blanks with accurate information. Write the sale price in both numbers and words (for example, "Five Thousand Dollars ($5,000.00") to prevent disputes or alterations. Write the odometer reading exactly as it appears on the vehicle's instrument cluster, and note the date you are signing.
Both the seller and buyer should sign and print their names on the document in front of each other if possible. Some people have the signatures notarized, though Illinois does not require this for a bill of sale. Notarization adds a layer of legal protection and may be useful if you think a dispute could arise later. After both parties sign, each should keep a copy for their records. The buyer will need their copy when they go to the Secretary of State to transfer the title into their name.
What happens to the bill of sale after the sale
The bill of sale is not filed with the Illinois Secretary of State. Instead, it remains a private document between you and the buyer. The buyer will bring their copy of the bill of sale to the Secretary of State's office (or submit it online if using the state's electronic title system) along with the signed title document when they register the vehicle in their name. The Secretary of State will use the bill of sale as supporting documentation for the title transfer, but will not keep it on file.
As the seller, keep your copy of the signed bill of sale indefinitely. If the buyer later gets into an accident, receives a parking ticket, or causes damage while driving the car, and somehow your name is still associated with the vehicle, the bill of sale proves you no longer owned it on the date of the incident. This document is your protection against liability after you sell the car.
Protecting yourself as a seller with the bill of sale
Before you hand over the keys, make sure the buyer has signed the bill of sale and you have a copy in your possession. Do not rely on the buyer to handle the title transfer — follow up with the Secretary of State a few weeks after the sale to confirm that the title has been transferred into the buyer's name. You can check the status of a title transfer through the Secretary of State's website or by calling their office.
If the title has not been transferred within 30 days, contact the buyer and remind them to complete the registration. If they do not respond or do not transfer the title, you may still be liable for violations or accidents involving the vehicle. In that case, you can file a report with the Secretary of State stating that you sold the vehicle and no longer own it, and provide a copy of the signed bill of sale as proof. Keep the bill of sale safe — it is the only document that proves you are no longer responsible for the car.
Frequently Asked Questions
Do I need a notary to sign a bill of sale in Illinois?
No, Illinois does not require a notary for a bill of sale. Both parties can sign it without notarization and it will be valid. However, having a notary witness the signatures adds legal weight to the document and may protect you if a dispute arises later. Some people choose to notarize for peace of mind, but it is not mandatory.
What if the buyer does not transfer the title right away?
Keep your signed copy of the bill of sale. If violations or accidents occur before the title is transferred, the bill of sale proves you sold the vehicle and are no longer the owner. You can file a report with the Illinois Secretary of State and provide the bill of sale as evidence. Follow up with the buyer to may support they complete the transfer within a reasonable time.
Can I sell a car with a loan still on it?
Yes, but the lender's name and lien amount should be noted on the bill of sale. The seller typically pays off the loan from the sale proceeds before handing the title to the buyer. The lender will release the lien once the loan is paid in full, and then the title can be transferred. Coordinate with your lender and the buyer to may support the payoff happens at or before the time of sale.
What if I lose my copy of the bill of sale after the sale?
Contact the buyer and ask for another signed copy. If the buyer cannot provide one, you can ask them to sign a new bill of sale with the same information and date as the original. If neither party has a copy and a dispute arises, you may have difficulty proving the sale occurred, so it is important to keep your copy in a safe place.