What a New Jersey bill of sale is and why you need one

A bill of sale is a written record that you sold a car to someone else. In New Jersey, it documents the sale price, the vehicle details, the date, and the signatures of both the seller and buyer. The state does not require a bill of sale to transfer ownership — the title document itself does that — but you should create one anyway because it protects both of you if questions come up later about the sale.

The bill of sale becomes your proof that you sold the car on a specific date for a specific price. If the buyer gets into an accident before registering the vehicle in their name, or if they fail to pay property taxes on it, you have written evidence that you no longer owned it. For the buyer, it proves they purchased the car legitimately and what they paid, which matters if they need to dispute an insurance claim or prove ownership to a lender.

New Jersey does not have a single official bill of sale form that you must use. You can write one yourself, use a template, or have the dealer provide one if you are buying from a dealership. What matters is that the document includes the required information and is signed by both parties.

Key Takeaways

  • New Jersey does not require a bill of sale by law, but creating one protects both the seller and buyer by documenting the sale price, date, and vehicle details.
  • The bill of sale must include the vehicle identification number (VIN), make, model, year, sale price, date of sale, and signatures of both the seller and buyer.
  • You can write a bill of sale yourself using a template, read one from the New Jersey Motor Vehicle Commission website, or use a form from a dealership.
  • The bill of sale is separate from the title transfer — you will also need to complete the title document and submit it to the Motor Vehicle Commission to officially transfer ownership.
  • Both the seller and buyer should keep a signed copy of the bill of sale for their records.

What information must go in a New Jersey bill of sale

The bill of sale should include the vehicle identification number (VIN), which you can find on the title, the registration, or the dashboard on the driver's side. You also need the make, model, year, and color of the car. Include the odometer reading at the time of sale — this is important for the buyer's records and for detecting odometer fraud.

Write down the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). Include the date of the sale. Add the full names, addresses, and phone numbers of both the seller and the buyer. Both parties must sign and date the bill of sale in front of each other or have it notarized, though notarization is not required by New Jersey law.

You can also note the condition of the vehicle (for example, "sold as-is") and whether any warranty is included. If the car has known defects or damage, writing them down in the bill of sale can prevent disputes later.

Where to find a bill of sale template for New Jersey

The New Jersey Motor Vehicle Commission does not provide an official bill of sale form, but you can find templates online through the MVC website or through consumer resources. Many templates are available for free read as PDF or Word documents.

If you are buying from a dealership, the dealer will usually provide their own bill of sale form. If you are buying from a private seller, you can ask them to use a template or write one together. Some banks and credit unions that finance car purchases also provide bill of sale forms for their customers.

When you choose a template, make sure it includes all the information listed in the previous section. Read through it before you fill it out so you understand what each blank means.

How to complete and sign the bill of sale

Fill in all the blanks with accurate information. Use black or blue ink if you are writing by hand, and print clearly so there is no confusion about numbers or names. If you are typing the form, print it out and sign it by hand — do not sign a digital copy unless you are using an electronic signature service that both parties trust.

The seller and buyer should both review the completed form to make sure all the details are correct before signing. Sign and date the document. You do not have to have the signatures notarized in New Jersey, but doing so adds an extra layer of proof that both parties signed willingly and that the signatures are genuine. If you choose to notarize, both the seller and buyer must be present with a notary public.

Make at least two copies — one for the seller and one for the buyer. If the car is financed, the lender may also want a copy. Keep your copy in a safe place, such as a file folder or safe deposit box.

How the bill of sale relates to the title transfer

The bill of sale and the title are two separate documents that work together. The bill of sale proves the sale happened and documents the terms. The title is the official ownership document issued by the state, and transferring it is what actually changes who owns the car in New Jersey's records.

After you sign the bill of sale, the buyer will need to take the signed title, the bill of sale, and other documents to the Motor Vehicle Commission to register the car in their name. The seller should sign the back of the title where it says "Seller's Signature" or "Transferor's Signature." The buyer will then submit the signed title to the MVC along with a completed registration process and proof of insurance.

The bill of sale does not transfer the title by itself. If the title is not transferred within a certain time, the car remains registered to the seller, and the seller could be held responsible for tickets, tolls, or accidents involving the vehicle. Make sure the buyer understands that they need to complete the title transfer promptly.

What to do if you are selling a car with a loan or lien

If you still owe money on the car, the lender holds a lien on the title. You cannot transfer a clear title to the buyer until the lien is removed. The bill of sale should note that the sale is subject to the lien being paid off.

Work with your lender to pay off the loan before or at the time of sale. Some lenders allow the buyer to pay off the loan directly, or you can use the sale proceeds to pay it off yourself. Once the lien is removed, the lender will send you a release document or a clear title. You then sign the clear title over to the buyer.

Include a note in the bill of sale stating something like "Vehicle sold subject to lien held by [Lender Name]. Lien to be satisfied by [date]." This protects both you and the buyer by making clear that the title transfer will happen only after the lien is cleared.

Common mistakes to avoid when writing a bill of sale

Do not leave blanks or write "N/A" for required information. If you do not know something, find out before you sign. Mistakes in the VIN, sale price, or names can cause problems when the buyer tries to register the car or if a dispute comes up later.

Do not sign a bill of sale that has been altered or crossed out after it was completed. If you need to make changes, start over with a new form. Do not accept a bill of sale that is missing the buyer's or seller's signature, or one that is not dated.

Do not assume the bill of sale alone transfers the title. The buyer must still complete the title transfer at the Motor Vehicle Commission. If the title is not transferred, you remain the registered owner and could face liability for the vehicle.

Frequently Asked Questions

Do I have to notarize a bill of sale in New Jersey?

No, notarization is not required by New Jersey law. However, having a notary public witness both signatures adds proof that the signatures are genuine and that both parties signed willingly. If you think there might be a dispute later, notarization is worth the small cost.

What if the buyer does not transfer the title to their name?

If the buyer does not submit the signed title to the Motor Vehicle Commission, the car remains registered to you. You could be held responsible for registration fees, property taxes, parking tickets, or accidents involving the vehicle. Keep a copy of the signed bill of sale showing the date of sale and the buyer's name and address. If problems arise, you can use this to prove you no longer owned the car and direct authorities to the buyer.

Can I sell a car without a bill of sale?

Technically yes, because New Jersey does not require one by law. However, it is a bad idea. Without a bill of sale, you have no written proof of when you sold the car, to whom, or for how much. If the buyer gets into an accident or fails to register the car, you could face liability. Always create a bill of sale, even if it is just a straightforward handwritten note with all the required information.

What if I lost the title or it is damaged?

Contact the New Jersey Motor Vehicle Commission to request a duplicate title. You will need to fill out an process and pay a fee. Once you have the replacement title, you can sign it over to the buyer and proceed with the sale normally. The bill of sale should still include all the vehicle information and sale details.

Can I use an electronic bill of sale or sign it digitally?

New Jersey recognizes electronic signatures under the Uniform Electronic Transactions Act, so a digitally signed bill of sale is legally valid. However, make sure both parties use a method they trust and that creates a clear record of the signatures. Printing out a copy and having both parties sign by hand is simpler and leaves no room for doubt.