A bill of sale is a written record that documents the transfer of a vehicle from one owner to another
A bill of sale is a document that proves you bought or sold a vehicle. It records the date of the transaction, the names and addresses of both the buyer and seller, the vehicle identification number (VIN), the sale price, and the condition of the vehicle at the time of sale. Most states do not legally require a bill of sale to register a vehicle, but having one protects both parties by creating a paper trail of ownership and price.
The bill of sale serves as evidence if a dispute arises later — for example, if the seller claims the buyer still owes money, or if the buyer discovers undisclosed damage. It also helps the buyer prove they paid for the vehicle if they are asked to show proof of purchase. For the seller, it documents that they transferred ownership and received payment, which can protect them if the vehicle is later involved in an accident or crime.
Key Takeaways
- A bill of sale should include the VIN, sale price, date of sale, and the full names and addresses of both buyer and seller.
- Most states do not require a bill of sale by law, but it is the fastest way to create a record of the transaction that protects both parties.
- The bill of sale is separate from the title document — you still need to transfer the title through your state's motor vehicle department.
- Both the buyer and seller should sign and date the bill of sale, and each should keep a copy for their records.
What information must go in a bill of sale
The bill of sale should include the seller's full name, address, and phone number; the buyer's full name, address, and phone number; the vehicle's VIN (found on the dashboard or title); the make, model, and year of the vehicle; the odometer reading at the time of sale; and the sale price in dollars. If the vehicle is being sold as-is with known problems, note those conditions in writing — for example, "transmission slips" or "check engine light on." This protects the buyer from later claiming they were not told about the problem.
Include the date the sale took place and the date the buyer takes possession of the vehicle (these may be different). Add a line stating whether the seller warrants that the title is clear and free of liens, or whether there are outstanding loans or claims against the vehicle. If the buyer is assuming a loan, that should be noted as well. Both parties should sign and print their names, and the signatures should be dated.
States that require a bill of sale or have specific forms
Most states do not mandate a bill of sale, but some have official forms or specific requirements. States including Maryland, Michigan, Missouri, New Hampshire, New Mexico, New York, Ohio, and Tennessee have their own bill of sale forms available through their motor vehicle departments. Using your state's official form is the safest approach because it includes all the language your state's title office expects to see.
Even if your state does not require a bill of sale, creating one is still a good practice. You can use a generic template or your state's form if one exists. Check your state's motor vehicle department website to see whether a form is available and whether any specific language is required. Some states ask that the bill of sale be notarized, though this is uncommon.
How to fill out a bill of sale correctly
Start by typing or printing the document clearly — handwritten bills of sale are acceptable but harder to read if there is a dispute later. Fill in the seller's information first, then the buyer's information, making sure both names match the names on the vehicle title. Enter the VIN exactly as it appears on the title, character by character, because a single mistake can cause problems when the buyer registers the vehicle.
Write the sale price as a number and spell it out in words to prevent anyone from adding zeros later. For example: "$5,500 (five thousand five hundred dollars)." If the sale price is zero because the vehicle is a gift, write that clearly: "$0 (gift)." Have both the buyer and seller sign in blue or black ink and date their signatures. Each party should keep an original signed copy. Do not leave blank lines or spaces where information could be added later.
The difference between a bill of sale and a title transfer
A bill of sale and a title transfer are two separate documents that serve different purposes. The bill of sale is a record of the transaction between buyer and seller. The title is the legal document issued by your state that proves ownership of the vehicle. You need both: the bill of sale proves the sale happened, and the title transfer proves the state recognizes the new owner.
After you sign a bill of sale, the buyer must take it to the motor vehicle department along with the signed title, proof of insurance, and any other documents your state requires. The state then issues a new title in the buyer's name. The bill of sale is not filed with the state in most cases — it stays with the buyer and seller as proof of the transaction. Without a title transfer, the buyer is not the legal owner in the eyes of the state, even if they have a signed bill of sale.
When a bill of sale alone is not enough
If the vehicle has a lien (an outstanding loan), the bill of sale must note this, but it does not remove the lien. The seller must pay off the loan before transferring the title, or the buyer must assume the loan. If the lien is not paid off, the lender still has a claim on the vehicle and can repossess it even after the buyer takes possession. The bill of sale should state whether the vehicle is being sold free and clear or with an existing loan.
If the vehicle is being sold by someone other than the registered owner — for example, an estate executor or a power of attorney — the bill of sale should explain the relationship and include documentation of that authority. A bill of sale also does not cover warranties or guarantees about the vehicle's condition or mechanical fitness. If the buyer wants a warranty, that should be a separate written agreement signed by both parties.
Where to get a bill of sale template
Your state's motor vehicle department website usually has a free bill of sale form you can read and print. Search "[your state] bill of sale" or "[your state] motor vehicle department" to find the official form. If your state does not have an official form, you can use a generic template from a reputable source. Many legal document websites offer free templates, though you should verify that the template includes all the information your state requires.
Before you use any template, check your state's motor vehicle department website to see whether there are specific requirements for language, notarization, or format. Some states require the bill of sale to be on a specific form or to include specific language about liens or warranties. Using the correct form for your state prevents delays when the buyer tries to register the vehicle.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
Most states do not require notarization, but a few do. Check your state's motor vehicle department website to see whether notarization is required. Even if it is not required, having a notary witness the signatures adds an extra layer of proof that both parties signed willingly and that their identities were verified.
What if I lost the bill of sale after I bought the vehicle?
If you have the title in your name, you have proof of ownership and do not need the bill of sale. The bill of sale is most important at the moment of purchase. If you need to prove the price you paid for tax or insurance purposes, contact the seller and ask them to provide a copy of the signed bill of sale they kept.
Can I use a bill of sale instead of transferring the title?
No. A bill of sale proves the sale happened, but only a title transfer makes you the legal owner in your state's records. You must file the title transfer with your motor vehicle department within the time limit your state sets, usually 10 to 30 days after purchase. Without a title transfer, you cannot legally register the vehicle or insure it in your name.
What should I do if the seller will not sign the bill of sale?
Do not complete the purchase. A seller who refuses to sign a bill of sale is a red flag that something is wrong — the vehicle may have a lien, be stolen, or have a salvage title. Walk away from the deal. A legitimate seller will sign a bill of sale without hesitation because it protects them as much as it protects you.
Can I write a bill of sale by hand?
Yes, a handwritten bill of sale is legal in most states as long as it includes all required information and is signed by both parties. However, a typed or printed bill of sale is clearer and easier to read if there is ever a dispute. If you do write by hand, use blue or black ink and write as legibly as possible.