A bill of sale for a gifted car is a written record that you and the recipient both sign, stating that the car is being transferred with no money changing hands

Even though no payment is involved, a bill of sale protects both of you. It creates a dated, signed document showing who owned the car, who has it now, and that the transfer was intentional. Without one, the previous owner (you) can remain on the title and registration, which means you could be liable for accidents, parking tickets, or tolls the new owner racks up. The recipient needs proof of the transfer to register the car in their name.

A bill of sale for a gift is simpler than one for a sale—you're not negotiating price or payment terms—but it still needs to be done correctly so your state's motor vehicle department will accept it when the recipient registers the car.

Key Takeaways

  • A bill of sale for a gifted car must state the vehicle identification number (VIN), the date of transfer, and that no money is being exchanged, and both the giver and receiver must sign it.
  • Your state motor vehicle department has a specific form or requirements for bills of sale; check their website or call before you write one from scratch.
  • The recipient will need the signed bill of sale, the original title, and proof of insurance to register the car in their name at the DMV.
  • Keep a copy for your records and submit the original with the title to your state's motor vehicle office within the timeframe your state requires, usually 10 to 30 days.

What information must go on the bill of sale

The bill of sale should include the full legal name and address of the person giving the car (you), the full legal name and address of the person receiving it, and the date the transfer is happening. It must also have the vehicle identification number (VIN), which you'll find on the driver's side of the windshield or on the title itself, the year, make, and model of the car, and the current odometer reading.

The critical part for a gift is a clear statement that the car is being transferred as a gift with no payment or consideration. Write something like "This vehicle is being transferred as a gift. No money or other consideration is being exchanged." Both you and the recipient must sign and date the document. Some states require the signatures to be notarized; check your state's requirements before signing.

Do not leave fields blank or use vague language. A motor vehicle department clerk reviewing this document needs to understand exactly what happened and who is responsible for what. If the form looks incomplete or unclear, the registration will be delayed or rejected.

Check your state's specific form or requirements first

Most states have an official bill of sale form or specific rules about what a bill of sale must contain. Your state's motor vehicle department website usually has a downloadable form, or you can call their main line and ask for the bill of sale template. Some states call it a "gift affidavit" or "transfer of ownership" form instead.

Using your state's official form is the safest route because it includes all the fields the department needs and is formatted the way their staff expect. If you write one yourself and it's missing something, the registration process will stall. A few states do not require a bill of sale for gifts at all—they may only need the title signed over—so confirm what your state actually needs before you spend time on paperwork.

If your state does not provide a form, a basic bill of sale template from a legal document site can work, but read it carefully to make sure it covers gifts and not just sales. Crossing out sections that don't explore (like payment terms) is acceptable, but it looks cleaner if you use a form designed for gifts.

Who signs and whether notarization is required

Both the current owner (you) and the new owner (the recipient) must sign the bill of sale. Some states require both signatures to be notarized; others do not. A notary public is someone licensed to witness signatures and verify that the people signing are who they say they are. If notarization is required in your state, you'll need to go to a notary together or separately—check your state's rules—and bring a photo ID.

Notaries are available at banks, UPS stores, some libraries, and dedicated notary offices. There is usually a small fee, typically $5 to $15 per signature. If your state does not require notarization, you can sign the bill of sale at home or anywhere else, but both signatures must be in ink, not printed or digital, unless your state specifically allows electronic signatures.

Do not sign the title itself until you know what your state requires. Some states want the title signed over at the same time as the bill of sale; others want it signed separately or at the DMV. Check your state's process before you sign anything.

What happens after both of you sign

Once the bill of sale is signed, make at least two copies—one for you and one for the recipient. Keep your copy in a safe place. The recipient will need the original signed bill of sale, the original title (signed over by you according to your state's rules), and proof of insurance to take to the motor vehicle department and register the car in their name.

You should also submit a copy of the signed bill of sale to your state's motor vehicle department, along with the title, within the timeframe your state requires. This timeframe varies: some states want it within 10 days, others within 30 days. Submitting it tells the state that you are no longer the owner and removes you from liability for the vehicle. If you do not submit it and the new owner gets into an accident or racks up parking tickets, you could still be held responsible because the state's records still show you as the owner.

Check your state's motor vehicle website for the exact address to mail the documents to, or whether you can submit them online or in person at a local office.

What the recipient needs to do to register the car

The recipient will take the signed bill of sale, the original title (signed by you), proof of insurance, and their driver's license to the motor vehicle department to register the car in their name. The insurance requirement varies by state—some require proof of insurance before registration, others after—so the recipient should check with your state's DMV or call ahead to confirm what they need to bring.

The registration process usually takes a few days to a couple of weeks, depending on how busy the local office is. The recipient will receive new registration documents and, if they want, new license plates. Until the registration is complete and in their name, the car is still technically registered to you, so make sure they understand the importance of finishing this step quickly.

If the recipient does not complete the registration within a reasonable time (usually 30 days), contact your state's motor vehicle department yourself to report the transfer, even if you have already submitted your copy of the bill of sale. This protects you if something goes wrong with the car before the registration is officially changed.

Common mistakes to avoid

The most common mistake is not submitting the bill of sale to the motor vehicle department yourself. Many people assume that once the recipient registers the car, the state will automatically know the transfer happened. That is not always true. If you do not formally notify the state that you gave the car away, you remain the registered owner in their system, and you can be held liable for the recipient's traffic violations, accidents, or unpaid tolls.

Another mistake is signing the title before you know your state's process. Some states want the title signed at the same time as the bill of sale; others want it signed only when the recipient is at the DMV. Signing it too early or in the wrong way can delay or invalidate the registration. Call your state's motor vehicle department or check their website to see the exact order of steps.

Do not leave the odometer reading blank or write an estimate. Write the actual mileage shown on the dashboard at the time of transfer. If the odometer is broken, note that on the bill of sale. Odometer fraud is a federal crime, and even an honest mistake can raise red flags during registration.

Frequently Asked Questions

Do I need a bill of sale if I'm just signing the title over to someone?

A bill of sale and a signed title are two different documents that work together. The title proves ownership; the bill of sale proves the transfer happened and on what date. Most states require both. Check your state's motor vehicle website to confirm whether a bill of sale is required or if the title signature alone is enough.

What if the recipient doesn't register the car right away?

You are still liable until the registration is officially changed. Contact your state's motor vehicle department and ask how to formally report the transfer if the recipient has not registered the car within 30 days. Some states allow you to file a "notice of transfer" to protect yourself.

Can I use a bill of sale template from the internet?

Only if it is specific to your state and covers gifts, not sales. Your state's motor vehicle department website usually has the correct form. Using the wrong template can cause the registration to be rejected, so check your state's requirements first.

Do both of us have to go to the notary at the same time?

That depends on your state. Some notaries will notarize signatures separately; others require both parties to be present. Call a notary office in your area and ask what they require before you schedule an appointment.

What if I lost the title?

You will need to get a duplicate title from your state's motor vehicle department before you can transfer the car. This usually costs $10 to $30 and takes a few days to a couple of weeks. Contact your state's DMV to find out how to request a duplicate.