A bill of sale is a written record that you and the seller sign to prove who owned the car, who owns it now, and what was paid for it
A bill of sale is a document that transfers ownership of a vehicle from one person to another. It records the seller's name and address, the buyer's name and address, a description of the vehicle (make, model, year, vehicle identification number), the sale price, and the date of the transaction. Both the seller and buyer sign it. The document protects both parties by creating a paper trail that proves the sale happened, what was agreed to, and who is responsible for the car from that point forward.
You need a bill of sale whenever you buy or sell a vehicle privately—that is, directly from one person to another rather than through a dealership. Dealerships typically handle their own paperwork. When you buy or sell privately, the bill of sale is your proof of the transaction. It is not the same as a title (the legal ownership document), but it works alongside the title to complete the transfer of ownership at your state's motor vehicle department.
The bill of sale protects you in concrete ways. If you are the buyer, it proves you paid for the car and when. If a lien holder or creditor later claims the seller still owes money on the vehicle, your bill of sale with the date and price shows you bought it in good faith. If you are the seller, it proves you no longer own the car after a certain date, which shields you from liability if the buyer gets into an accident or racks up parking tickets after you have sold it to them.
Key Takeaways
- A bill of sale is a signed document between buyer and seller that records the vehicle description, sale price, and date of transfer.
- You need a bill of sale for private sales; dealerships provide their own paperwork.
- The bill of sale protects the buyer by proving purchase and the seller by proving they no longer own the vehicle after the sale date.
- Your state's motor vehicle department provides a bill of sale form, or you can use a generic template as long as it includes all required information.
- Both buyer and seller must sign the bill of sale, and you should each keep a copy before submitting the original with your title transfer paperwork.
What information goes on a bill of sale
A bill of sale must include the seller's full name, address, and signature; the buyer's full name, address, and signature; and the date of the sale. It must also describe the vehicle clearly: the year, make, model, body style (sedan, truck, SUV), color, and the vehicle identification number (VIN), which you can find on the driver's side of the dashboard or on the title itself.
The sale price must be written on the bill of sale. Some people leave this blank or write "as is" to avoid sales tax complications, but this is a mistake. The price you actually paid is part of the legal record of the transaction. If you later need to prove the sale was legitimate—for example, if the seller disputes it or if a lien holder questions the transfer—the price is evidence. Write the actual amount in both numbers and words to prevent tampering.
You should also note the vehicle's condition at the time of sale. Write whether it is being sold "as is" (meaning the buyer accepts it with no warranty from the seller) or whether the seller is making any promises about its mechanical condition. If there are known problems—a transmission that slips, a check engine light that is on—write them down. This protects both of you by making clear what the buyer knew and accepted at the time of purchase.
Where to get a bill of sale form
Your state's motor vehicle department publishes an official bill of sale form. You can read it from the department's website or pick up a copy at a local office. The form varies slightly by state—some ask for odometer reading, some ask whether the vehicle has a lien on it, some ask for the VIN in a specific format. Using your state's official form ensures you are including everything the motor vehicle department will need when you submit your title transfer paperwork.
If you cannot find your state's form or prefer a different layout, you can use a generic bill of sale template from a legal document website or even write one yourself on plain paper, as long as it includes all the required information: seller name and signature, buyer name and signature, vehicle description with VIN, sale price, date, and condition of the vehicle. The form does not have to be fancy or printed on special paper. What matters is that both parties sign it and that all the information is there and accurate.
Some states require the bill of sale to be notarized (signed in front of a notary public who verifies your identity). Check your state's motor vehicle department website to see whether notarization is required before you sign. If it is, you will need to take the form and your identification to a notary, which usually costs five to fifteen dollars and takes a few minutes.
How to fill out and sign a bill of sale
Print or write the form clearly in black or blue ink. Fill in all the blanks completely—do not leave fields empty or write "N/A." If a field does not explore to your sale, write "not applicable" or draw a line through it so it is clear the omission was intentional, not an oversight. Use the vehicle's VIN exactly as it appears on the title or registration; a mismatched VIN can delay your title transfer at the motor vehicle department.
Both the seller and buyer must sign and date the form. Some states require the signatures to be witnessed by a third party or notarized; again, check your state's requirements. Sign in pen, not pencil. If you make a mistake, do not use white-out or cross it out sloppily. Start over with a fresh copy. The document will be submitted to a government office, and sloppy corrections can cause delays or rejection.
Once both parties have signed, make at least two copies—one for the seller and one for the buyer. Keep your copy in a safe place. The buyer will need to bring the original bill of sale (or a certified copy) along with the title when submitting the title transfer paperwork to the motor vehicle department. The seller should keep a copy for their records in case questions arise later about when the sale occurred or what condition the vehicle was in at the time.
When to get the bill of sale signed
The bill of sale should be signed at the same time the money changes hands and the keys are handed over. This is the moment of transfer—when the buyer becomes the owner and the seller is no longer responsible for the vehicle. Do not sign the bill of sale before the buyer has paid in full or before you have inspected the vehicle and agreed to the price. Once both parties have signed, the transaction is legally complete, even if the title transfer at the motor vehicle department has not happened yet.
If you are the buyer, do not hand over the full payment until you have the signed bill of sale in your hands. If you are the seller, do not sign until you have received payment. Payment should be in a form that creates a record—a cashier's check, a bank transfer, or a personal check. Avoid cash if possible, because cash leaves no proof of payment. If you must use cash, have the buyer write "paid in cash" on the bill of sale and sign next to it.
Submitting the bill of sale with your title transfer
After you have signed the bill of sale, the buyer must take it to the motor vehicle department along with the original title (signed over by the seller), proof of insurance, and a completed title transfer process. The exact documents and forms vary by state. Some states require an odometer disclosure form; some require a smog check or emissions test certificate if the vehicle is being transferred between states.
The buyer should submit these documents within the timeframe your state allows—usually 10 to 30 days after the sale. Delaying the title transfer can result in late fees or penalties. The seller should also notify the motor vehicle department that they have sold the vehicle, either by submitting a release of liability form or by noting the sale on their registration. This removes the seller from liability for the vehicle once the transfer is complete.
The motor vehicle department will review the bill of sale, the title, and the other paperwork. If everything is correct and complete, they will issue a new title in the buyer's name. This process usually takes two to four weeks, though it varies by state and how busy the office is. Once the new title arrives, the buyer is the official legal owner of the vehicle.
Common mistakes to avoid when writing a bill of sale
Do not leave the sale price blank or write "as is" instead of a number. The price is part of the legal record. Do not miswrite the VIN or leave it off entirely—the motor vehicle department will reject the title transfer if the VIN does not match the title. Do not sign the bill of sale before the buyer has paid or before you have agreed on the final price and condition of the vehicle.
Do not assume the bill of sale alone transfers the title. The bill of sale is proof of the sale, but the title itself must be signed over by the seller and submitted to the motor vehicle department by the buyer. Until that happens, the seller is still the legal owner on record, even though they have sold the car. Do not forget to make copies for both parties. If a dispute arises later, each person needs their own signed copy as proof.
Do not use a bill of sale form from another state unless your state does not have its own. State forms are designed to meet that state's specific requirements, and using the wrong form can cause delays or rejection when you submit your title transfer. Do not sign a bill of sale that has blank spaces or information you have not verified. Once you sign, you are confirming that everything on the form is accurate.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealership?
No. Dealerships handle their own paperwork and provide a sales contract or purchase agreement that serves the same purpose. You will not need a separate bill of sale. The dealership will handle the title transfer on your behalf or provide you with the documents you need to complete it yourself.
What if the seller will not sign the bill of sale?
Do not complete the sale. A seller who refuses to sign is a red flag. They may be hiding a lien on the vehicle, may not actually own it, or may be planning to dispute the sale later. A signed bill of sale is your only protection. Walk away from the deal unless the seller will sign.
Can I use a bill of sale instead of getting the title transferred?
No. The bill of sale proves the sale happened, but the title is the legal ownership document. You must submit the bill of sale along with the signed title to the motor vehicle department to become the official owner. Without a title transfer, the seller remains the legal owner on record, and you have no legal claim to the vehicle.
What if I lost my copy of the bill of sale after the sale?
Contact the other party and ask for a copy. If you cannot reach them, you may be able to request a certified copy from the motor vehicle department if the title transfer was completed. Keep your copy in a safe place—you may need it years later if a dispute arises about when you bought the vehicle or what condition it was in.
Does the bill of sale have to be notarized?
It depends on your state. Some states require notarization; others do not. Check your state's motor vehicle department website to find out. If notarization is required and you sign without it, the title transfer may be rejected. If it is not required, notarization is optional but can add an extra layer of protection by having a third party verify your identity.