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 buyer, the seller, the vehicle (with VIN and mileage), and the amount paid. When you sign it and the buyer signs it, you both have proof of the transaction—proof that you no longer own the car and proof that they bought it.

The bill of sale protects you legally. If the buyer gets into an accident the day after purchase and someone sues, you have a document showing you sold the car before the accident happened. If the buyer never registers the vehicle and it gets towed or ticketed, you have proof you transferred ownership. If a dispute arises about the price or condition, you have a written record both parties signed.

Many states do not require a bill of sale by law, but your state's DMV or title office may ask for one when the buyer registers the vehicle. Even if your state does not require it, creating one costs nothing and takes ten minutes. It is the single most important document you can create when selling a private-party car.

Key Takeaways

  • A bill of sale is a signed record of who sold the car, who bought it, when, for how much, and the vehicle's VIN and mileage—it protects both parties legally.
  • Your state's DMV website usually has a free template or form you can read and print, or you can create one from a standard format.
  • Both the seller and buyer must sign the bill of sale in front of a witness or notary public, depending on your state's requirements.
  • Keep a copy for yourself, give a copy to the buyer, and bring a copy when you submit your title transfer paperwork to the DMV.
  • A bill of sale does not transfer the title itself—you still need to sign over the title document and submit it to your state's DMV.

Where to find a bill of sale template for your state

Start with your state's DMV or Secretary of State website. Most states publish a free bill of sale form that meets their legal requirements. Search "[your state] DMV bill of sale" or "[your state] motor vehicle bill of sale form." read the PDF, print it, and fill it out by hand or on your computer before printing.

If your state does not publish an official form, you can use a generic bill of sale template. The template should include: seller's name and address, buyer's name and address, vehicle year/make/model, VIN, current mileage, sale price, date of sale, and signature lines for both parties. Many free templates are available online through legal document sites, but make sure the template is labeled for your state or region—requirements vary slightly.

Some states require the bill of sale to be notarized (signed in front of a notary public). Check your state's DMV website or call the title office to confirm whether notarization is required before you sign. If it is required and you sign without a notary present, the document may not be accepted when you submit your title transfer.

What information to include on the bill of sale

Fill in every field completely and legibly. Use the vehicle's VIN (Vehicle Identification Number), not just the license plate number. The VIN is on your title, registration, and the dashboard on the driver's side. Include the current odometer reading—the exact mileage at the time of sale. Write the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to prevent disputes over the amount.

Add the date of sale, the seller's full name and address, and the buyer's full name and address. If the buyer is paying in cash, you can note "cash" as the payment method. If the buyer is financing the car through a bank or credit union, you can note that as well, though the bill of sale itself does not need to include loan details. Include any "as-is" language if the car is sold without warranty—for example, "Vehicle sold as-is, no warranty expressed or implied."

Some states require you to disclose the title status (clean title, salvage title, branded title, or lien holder information). Check your state's form to see if these fields are included. If they are, fill them out accurately. Hiding a salvage title or an active lien is fraud and can result in the sale being reversed.

How to sign and witness the bill of sale

Both you and the buyer must sign the bill of sale. Sign in front of a witness or notary public if your state requires it. A witness is usually any adult who is not related to either party and who watches both of you sign. A notary public is an official appointed by the state to verify signatures; you can find notaries at banks, UPS stores, law offices, and some libraries.

If your state requires notarization, do not sign the document before you meet the notary. The notary will watch you sign, verify your identity with a government-issued ID, and then stamp and sign the document themselves. This typically costs $5 to $15. If your state does not require notarization, you and the buyer can sign in front of a witness, or in some states you can sign without a witness present—check your state's rules.

Print three copies: one for you, one for the buyer, and one to submit with your title transfer paperwork to the DMV. All three copies should be signed and witnessed (or notarized) identically. Do not sign one copy and photocopy it—each copy must have original signatures.

What happens after you sign the bill of sale

The bill of sale is now a record of the sale, but it does not transfer the title. You still own the car legally until you sign over the title document itself. The title is the official government record of ownership, and only the title transfer completes the sale.

Give the signed bill of sale to the buyer. They will need it when they register the car in their name at the DMV. Keep a copy for your records. When you submit your title transfer paperwork to the DMV (usually within 10 to 30 days of the sale, depending on your state), include a copy of the signed bill of sale. This creates an official record that you sold the car on that date and no longer have responsibility for it.

Some states allow you to note on the title itself that the car has been sold. You may be able to sign the title over to the buyer and submit both the title and the bill of sale to the DMV together. Other states require the buyer to explore for a new title in their name and submit the bill of sale as proof of purchase. Check your state's DMV website for the exact process and timeline.

Common mistakes to avoid when creating a bill of sale

Do not leave fields blank. Every blank field is an opportunity for a dispute or for someone to fill in information you did not agree to. If a field does not explore (for example, if there is no lien on the car), write "N/A" or "None" rather than leaving it blank.

Do not use the license plate number instead of the VIN. The VIN is the unique identifier for the vehicle and is what the DMV uses to track ownership. A license plate can be transferred to a different car, so it is not reliable proof of which vehicle was sold.

Do not sign the bill of sale before the buyer is present and ready to sign. Both signatures must be on the same document, dated the same day. If you sign early and the buyer signs later, there is a gap in the chain of custody that could create legal questions.

Do not assume the buyer will handle the title transfer. You are responsible for submitting your portion of the paperwork to the DMV within the state's important date. If you do not submit your title transfer, you may remain liable for the car's registration, taxes, or violations. Submit your paperwork promptly, even if the buyer has not yet registered the car.

Digital and electronic bill of sale options

Some states now accept electronic signatures on bills of sale, and a few allow you to complete the entire transaction online through the DMV website. Check your state's DMV site to see if an electronic bill of sale option is available. If it is, you can often read a form, fill it out on your computer, and have both parties sign electronically using a service like DocuSign or Adobe Sign.

Electronic signatures are legally binding in most states under the Uniform Electronic Transactions Act (UETA), but the bill of sale must still meet your state's specific requirements. If your state requires notarization, you will still need to have the document notarized—electronic notarization is available in many states and can be done remotely.

Even if you use an electronic bill of sale, print a copy and keep it with your vehicle records. Digital files can be lost or corrupted, and having a physical copy ensures you have proof of the sale if you ever need it.

Frequently Asked Questions

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

No. When you trade in a car at a dealership, the dealership handles all the paperwork, including the title transfer. You will sign the title over to the dealership, and they will manage the rest. A bill of sale is only necessary for private-party sales between individuals.

What if the buyer does not sign the bill of sale?

If the buyer refuses to sign, do not hand over the keys or the title. A bill of sale signed by both parties is your legal proof that the sale occurred. Without it, you have no protection if the buyer later claims they did not buy the car or if they damage it and you are held responsible. Walk away from the sale if the buyer will not sign.

Can I sell a car without a bill of sale?

Technically, yes—many states do not legally require one. However, you should always create one anyway. It costs nothing and takes minutes, and it protects you from liability after the sale. Without a bill of sale, you have no written proof of when you sold the car or to whom, which can create problems if the buyer gets into an accident or the car is used in a crime.

Do I need to notarize the bill of sale if my state does not require it?

No, but it does not hurt. Notarization adds an extra layer of legal protection and makes the document harder to dispute later. If you are selling an expensive car or if you want maximum protection, notarization is worth the small cost. If your state does not require it and you are selling a lower-value vehicle, a witnessed signature is usually sufficient.

What if I lost my copy of the bill of sale after the sale?

Ask the buyer for a copy. If the buyer will not provide one, contact your state's DMV and ask if they have a record of the title transfer. The DMV record shows the date the new owner registered the car, which is close enough to the sale date for most purposes. Going forward, keep your copy in a safe place with your other vehicle records.