What a bill of sale is and why Indiana requires one

A bill of sale is a written record that you and the buyer (or seller) sign to document that a car has changed hands. In Indiana, it serves as proof of the transaction—who owned the car, who owns it now, the sale price, and the date. The state does not legally require a bill of sale to transfer a title, but the Indiana Bureau of Motor Vehicles strongly recommends one because it protects both parties if a dispute arises later.

Without a bill of sale, you have no paper trail if the buyer claims the car was never paid for, or if the seller later disputes the sale. If you are the seller, a signed bill of sale proves you transferred ownership on a specific date and received payment. If you are the buyer, it proves you paid for the car and have the right to register it in your name. Either way, it is your protection.

Key Takeaways

  • Indiana does not legally require a bill of sale, but the Bureau of Motor Vehicles recommends one because it documents the sale and protects both buyer and seller.
  • A bill of sale must include the vehicle identification number (VIN), sale price, date of sale, and signatures from both the seller and buyer.
  • You can use the official Indiana bill of sale form (Form 130) or write your own, as long as it contains all required information and is signed by both parties.
  • The buyer will need the bill of sale when explore for a new title and registration at the Bureau of Motor Vehicles, along with the signed title from the seller.
  • Keep a copy of the signed bill of sale for your records—the seller should keep one, and the buyer should keep one.

What information must be on an Indiana bill of sale

The bill of sale must include the vehicle identification number (VIN), which appears on the dashboard and on the title. It must also show the year, make, and model of the car. Include the sale price—write the actual amount paid, not "as is" or blank. If the car was traded in as part of the deal, note that and the value of the trade-in if money also changed hands.

Both the seller and the buyer must sign and print their names. Include the date of the sale. Add the seller's address and the buyer's address. If either party is a business rather than an individual, use the business name and the authorized person's signature. Some sellers also note the odometer reading on the bill of sale, which can be useful later if questions arise about the car's condition or mileage at the time of sale.

The bill of sale does not need to be notarized in Indiana, though some people choose to have it notarized for extra protection. A notarized bill of sale carries more weight if a dispute ends up in court, but it is not required by the state.

Using the official Indiana form or writing your own

Indiana provides an official bill of sale form called Form 130, available on the Bureau of Motor Vehicles website. You can read it, print it, fill it out by hand or type, and have both parties sign it. Using the official form ensures you include everything the state expects to see.

You can also write your own bill of sale as long as it contains all the required information: VIN, year, make, model, sale price, date, seller's name and address, buyer's name and address, and signatures from both parties. A handwritten bill of sale is legally valid in Indiana as long as both parties sign it. Some people use a template from a legal website or adapt one from another state, but make sure it includes Indiana-specific details and that both parties understand and agree to what is written.

Whichever route you choose, make sure the document is clear and legible. If the bill of sale is handwritten, use pen (not pencil) so the ink does not fade or smudge over time. Print clearly so there is no confusion about numbers, especially the VIN and sale price.

What happens with the bill of sale after the sale

After both parties sign, make at least two copies—one for the seller and one for the buyer. Keep your copy in a safe place with your other car documents. The buyer will need the bill of sale when they go to the Bureau of Motor Vehicles to register the car and explore for a new title in their name.

The buyer must bring the signed bill of sale, the signed title from the seller, proof of identity, proof of residence, and proof of insurance. The Bureau of Motor Vehicles will use the bill of sale to verify the sale price and confirm that the transaction is legitimate. If the sale price seems unusually low compared to the car's market value, the Bureau may ask questions, but a signed bill of sale from both parties usually resolves any concerns.

The seller should keep their copy of the signed bill of sale for at least several years. If the buyer later gets into an accident or commits a traffic violation while driving the car, and the police or courts try to contact the original owner, the seller can use the bill of sale to prove they no longer owned the vehicle on the date in question.

Common mistakes to avoid when writing a bill of sale

Do not leave the sale price blank or write "as is." The Bureau of Motor Vehicles needs to see an actual dollar amount to process the title transfer. If you are unsure of the price, agree on one before you sign. Do not use pencil—use pen so the document cannot be altered later.

Do not sign the bill of sale before both parties have read it and agreed to every detail. Once signed, it is a binding record of the transaction. Do not forget to include the VIN; without it, the document is incomplete and may not be accepted by the Bureau of Motor Vehicles. Do not assume the buyer will remember to bring the bill of sale to the Bureau—give them a copy and remind them they will need it.

Do not destroy your copy after the sale is complete. Keep it for several years in case questions arise about when you sold the car or what condition it was in. If you are the buyer, do not lose your copy before you take it to the Bureau of Motor Vehicles; if you do, ask the seller for another signed copy.

What to do if you cannot locate the seller or buyer to sign

If you are buying a car and the seller refuses to sign a bill of sale, that is a serious red flag. It may mean the seller does not actually own the car, or that the car has a lien against it that the seller is hiding. Do not complete the purchase without a signed bill of sale from the seller. If the seller claims they do not have time, ask them to sign it right then and there—it takes two minutes.

If you are selling a car and the buyer refuses to sign a bill of sale, you should also be cautious. A buyer who will not sign is either unfamiliar with the process or trying to avoid a paper trail. Insist on a signed bill of sale before you hand over the keys and the title. If the buyer will not cooperate, do not sell the car to them.

If you have already sold a car and did not get a signed bill of sale, contact the buyer and ask them to sign one retroactively. Explain that you need it for your records to prove you no longer own the vehicle. Most buyers will cooperate. If they will not, document your request in writing (email or letter) and keep that record along with any other proof of the sale you have.

Frequently Asked Questions

Do I need a bill of sale if I am trading in my car at a dealership?

No. Dealerships handle their own paperwork and do not use a standard bill of sale. The dealership will provide you with a trade-in receipt or agreement that documents the transaction. Keep that receipt for your records.

Can I use a bill of sale from another state?

You can, but it is better to use the Indiana form or write one that includes Indiana-specific information. The Bureau of Motor Vehicles is familiar with the official Indiana form and will process it faster. A bill of sale from another state may work, but it could cause delays if the Bureau questions whether it meets Indiana standards.

What if the sale price on the bill of sale is different from what I actually paid?

The bill of sale must show the actual sale price. If you and the buyer agreed on one price but wrote a different price on the bill of sale, you have created a false document. The Bureau of Motor Vehicles may investigate if the price seems wrong. Always write the true amount paid.

Do I need the bill of sale if I am inheriting a car from a family member?

No. Inheritance is not a sale, so a bill of sale does not explore. You will need a death certificate, a will or probate documents, and possibly an affidavit of heirship, depending on how the car is titled and the size of the estate. Contact the Bureau of Motor Vehicles for guidance on transferring an inherited vehicle.

What if I sell a car and the buyer never registers it in their name?

That is the buyer's responsibility, not yours. However, as the seller, you should notify the Bureau of Motor Vehicles that you have sold the car and provide the date and buyer's name. You can do this by submitting a Notice of Sale form to the Bureau. This protects you if the car is later involved in an accident or crime while still registered in your name. Keep your copy of the signed bill of sale as proof that you transferred ownership on a specific date.