What a Tennessee bill of sale is and why you need one

A Tennessee bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a vehicle. It shows who owned the car, who owns it now, the sale price, the vehicle identification number (VIN), and the date of the transaction. Tennessee does not legally require a bill of sale to transfer a car title, but the state's Department of Revenue treats it as strong evidence of ownership and sale price if a dispute arises later.

You need one because it protects both parties. If you are selling, it proves you received payment and no longer own the vehicle. If you are buying, it proves you paid for the car and have a record of what you bought. Without it, you have no paper trail if the seller claims you still owe money, or if the buyer claims the car was never transferred.

Tennessee does not have an official state form, but the document is straightforward to create. You can write one by hand or type it, and it does not need to be notarized to be valid, though having it notarized adds a layer of protection.

Key Takeaways

  • A Tennessee bill of sale must include the seller's and buyer's names and addresses, the vehicle's VIN, the sale price, and the date of sale, and both parties must sign it.
  • Tennessee law does not require a bill of sale to transfer title, but the Department of Revenue will use it as evidence if ownership is disputed.
  • You can handwrite or type the bill of sale; there is no official state form, though templates are widely available online.
  • Having the document notarized is optional but recommended, especially if the sale price is high or the buyer is unknown to you.
  • The buyer should keep the bill of sale when explore for a new title at the DMV, and the seller should keep a copy for their records.

What information must go on a Tennessee bill of sale

The bill of sale should include the seller's full name, address, and phone number at the top. Below that, write the buyer's full name, address, and phone number. Both pieces of information matter because the Department of Revenue uses them to verify the transaction if questions come up later.

Next, list the vehicle details: the year, make, model, color, VIN (the 17-character number on the dashboard or door jamb), and the license plate number if you have it. The VIN is the most important identifier because it ties the bill of sale to a specific car and prevents confusion if the seller has owned multiple vehicles.

Write the sale price in both numbers and words—for example, "$8,500 (Eight Thousand Five Hundred Dollars)"—to prevent disputes over what was agreed. Include the date of sale. At the bottom, both the seller and buyer must sign and print their names. If either party is uncomfortable signing, the transaction should not proceed.

How to fill out and sign the bill of sale

You can write the bill of sale by hand or type it. Handwritten bills of sale are legally valid in Tennessee as long as all required information is present and both parties sign. Type it if you want a cleaner, more professional-looking document, but handwritten is fine and sometimes preferred because it is harder to alter without detection.

Fill in all blanks completely. Do not leave spaces blank or write "N/A"—if you do not have a piece of information, note that it was not available rather than omitting it. Both the seller and buyer should sign in blue or black ink; avoid pencil because it can be erased. If either party is uncomfortable with the terms or the information on the document, do not sign. Signing means you agree to what is written.

Make at least two copies: one for the seller and one for the buyer. If you have the document notarized, the notary will stamp and sign it, and you should get a certified copy. Keep your copy in a safe place—you may need it if a problem arises months or years later.

When to get the bill of sale notarized

Notarization is not required by Tennessee law, but it strengthens the document. A notary public verifies that both parties signed willingly and in front of a witness. If the buyer later claims they never agreed to the sale, or if the seller claims they were pressured, a notarized bill of sale is harder to challenge.

You should consider notarization if the sale price is high (over $5,000), if you do not know the buyer well, or if the vehicle has a lien on it (meaning a lender still has a claim to it). To get the document notarized, take it unsigned to a notary public—you can find one at most banks, credit unions, UPS stores, or online notary services. The notary will watch both parties sign, verify identification, and charge a fee (usually $5 to $15 per signature).

What happens to the bill of sale after the sale

The buyer needs the bill of sale when they go to the Tennessee DMV to register the vehicle and explore for a new title. They will bring the bill of sale, proof of insurance, a completed process for Certificate of Title (Form RV-F1281010), and payment for the title fee. The DMV will use the bill of sale to confirm the sale price and verify that the seller had the right to sell the vehicle.

The seller should keep a copy of the signed bill of sale for at least three to five years. If a problem arises—for example, the buyer claims the car was defective, or the seller is accused of selling a stolen vehicle—the bill of sale is your proof that you completed the transaction honestly and on a specific date. Do not throw it away once the sale is done.

If the vehicle has a lien (the seller still owes money on it), the bill of sale should note that. The lender must release the lien before the buyer can get a clean title. The bill of sale does not clear a lien; it only documents that the sale happened. The seller is responsible for paying off the loan before the title transfers.

Common mistakes to avoid when writing a bill of sale

Do not leave the sale price blank or write "as is" without a number. The Department of Revenue uses the sale price to calculate taxes and fees, and disputes over price are common. Write the exact amount both parties agreed to, even if it is lower than the car's market value.

Do not sign the bill of sale before all blanks are filled in. Once you sign, you are agreeing to what is written. If the buyer later changes the price or adds information without your knowledge, you have no defense.

Do not assume the buyer will handle the title transfer. You are responsible for making sure the buyer actually registers the car in their name. If they do not, and the car is involved in an accident or crime, you could still be listed as the owner. Follow up with the buyer within a few weeks and ask for confirmation that they have applied for the new title.

Do not write the bill of sale in pencil or use white-out. Use blue or black ink and keep the document clean and readable. If you make a mistake, cross it out with a single line, write the correction above it, and both parties should initial the change.

Frequently Asked Questions

Can I sell a car in Tennessee without a bill of sale?

Technically yes—Tennessee does not legally require one to transfer title. However, without it you have no proof of the sale, the price, or when it happened. If a dispute arises, you are at a disadvantage. It takes five minutes to write one, so there is no good reason not to.

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

Do not sell the car. A buyer who refuses to sign is either hiding something or planning to dispute the sale later. A legitimate buyer will sign without hesitation. Walk away from the deal.

Do I need to report the sale to the Tennessee DMV?

No. The seller does not report the sale to the DMV. The buyer is responsible for explore for a new title within a set timeframe. However, you should keep a copy of the bill of sale to prove you sold the vehicle and are no longer the owner.

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

Ask the buyer for a copy. If they will not provide one, contact the notary (if it was notarized) and request a certified copy. If the document was not notarized and you have no copy, you have limited recourse, which is why keeping the original is important.

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

Yes. Many free templates are available online and work fine for Tennessee sales. Make sure the template includes all required fields: seller and buyer information, VIN, sale price, date, and signature lines. Customize it with the actual details of your sale before printing or signing.