A bill of sale is a written record that you and the buyer both sign to prove the car changed hands, when, and for how much

A bill of sale is a document that shows you sold a vehicle to someone else on a specific date for a specific price. Both you and the buyer sign it. It is not the same as a title — the title proves who owns the car legally, and the bill of sale proves a sale happened. You need both documents to complete a private sale correctly.

The bill of sale protects you by creating a record that you no longer own the car on the date you signed it. If the buyer gets into an accident, commits a traffic violation, or abandons the car after you sell it, you have proof you were not the owner at that time. For the buyer, it proves they paid for the car and have a right to register it in their name. Without it, disputes can arise about whether a sale actually took place, when it took place, or what was agreed.

Most states do not legally require a bill of sale, but many do require you to notify the Department of Motor Vehicles that you sold the vehicle. A bill of sale makes that notification easier because you have the buyer's name, address, and the sale date already documented. Some states — including Maryland, Michigan, Missouri, New Hampshire, Ohio, and South Carolina — do require a bill of sale by law.

Key Takeaways

  • A bill of sale is signed by both seller and buyer and shows the vehicle, the sale price, and the date the ownership changed hands.
  • Even in states where a bill of sale is not legally required, creating one protects you by proving you no longer owned the car after the sale date.
  • The bill of sale should include the vehicle identification number (VIN), odometer reading, and the buyer's full name and address so the buyer can register the car.
  • You should keep a copy for your records and give the original to the buyer, who will need it when they explore for a new title at the DMV.
  • A bill of sale does not transfer ownership — only the signed title does — but it creates a legal record that a sale occurred.

What information must go on a bill of sale

A bill of sale should include the vehicle's VIN (Vehicle Identification Number), the make, model, and year, and the odometer reading on the day of sale. Write the exact mileage, not an estimate. Include the sale price in dollars, the date you signed the document, and both your full name and address and the buyer's full name and address. If the car has a lien on it (meaning a lender still owns part of it), write that on the bill of sale too.

Some states have a specific bill of sale form you should use. Check your state's DMV website — most post a template you can read and print. If your state does not have an official form, you can write one yourself or use a generic template from a legal document site. The key is that it must be signed and dated by both parties. Handwritten is fine; it does not have to be typed.

Do not leave the price blank or write "as is" without a dollar amount. The price is part of the legal record of the transaction. If you are selling the car for cash and want to record a lower price for tax purposes, that is between you and the buyer, but the bill of sale should show what actually changed hands.

How to fill out and sign the bill of sale

Print two copies of the bill of sale — one for you and one for the buyer. Fill in all the blanks with the vehicle information, your details, the buyer's details, and the sale price. Read it aloud with the buyer so you both agree on what is written. Then both of you sign and date the document in front of each other. You do not need a notary public to witness it in most states, but if your state requires notarization, the DMV website will say so.

Sign in pen, not pencil. Make sure the buyer's name matches their driver's license or ID exactly — if they register the car later and the name does not match, the DMV will reject the title process. If the buyer is buying the car with someone else, both of them should sign the bill of sale.

Keep your signed copy in a safe place. You may need it later if a question arises about when you sold the car or what condition it was in. Give the buyer their signed copy right away — they will need it to register the vehicle.

Notarization and state-specific requirements

Most states do not require a bill of sale to be notarized, but a few do. Maryland, Missouri, New Hampshire, and South Carolina require notarization by law. If your state requires it, you and the buyer must both go to a notary public together, sign the bill of sale in front of the notary, and have the notary stamp and sign it. Notaries are available at banks, UPS stores, and some libraries — usually for a small fee of five to ten dollars.

Check your state's DMV website before you sign anything. The site will list whether notarization is required and whether there is an official state form you must use. Using the wrong form or skipping notarization when it is required can delay the buyer's registration and create problems for you if you need to prove the sale date later.

Some states also require you to submit a notice of sale to the DMV within a certain number of days after selling the car. This is separate from the bill of sale — it is a form you mail or submit online to tell the state you no longer own the vehicle. The bill of sale helps you complete this notice because you have all the buyer's information already written down.

What happens to the bill of sale after the sale

The buyer will take their signed copy of the bill of sale to the DMV when they explore for a new title in their name. The DMV will ask for the bill of sale, the signed title from you, proof of insurance, and proof of identity. The bill of sale shows the buyer paid for the car and gives the DMV the sale date and price for their records.

You should keep your copy for at least three to five years. If the buyer gets into an accident or a traffic violation occurs after the sale, and you are contacted, you can show your copy of the bill of sale to prove you were not the owner at that time. If the car is abandoned or stolen, your bill of sale proves you sold it and are not responsible.

Do not throw away your copy until you are certain the buyer has registered the car in their name. You can check this by asking the buyer to show you their new registration a few weeks after the sale, or by contacting your state's DMV to confirm the title has been transferred.

Common mistakes to avoid when selling a car

Do not sign the title and the bill of sale on different dates. Sign them on the same day so the dates match and there is no confusion about when ownership changed. Do not leave the odometer reading blank — it is a legal requirement on the title and bill of sale, and the buyer needs it for their records.

Do not accept a personal check from the buyer unless you are willing to wait for it to clear before handing over the keys and title. Once you sign the title, the buyer can take it to the DMV even if the check bounces. Insist on cash, a cashier's check, or a bank transfer that clears before you release the vehicle.

Do not sell the car "as is" without telling the buyer about known problems. You are not required to fix anything, but you are required to disclose major issues — engine problems, transmission issues, frame damage, or anything that affects safety. Write "as is" on the bill of sale if that is the agreement, but tell the buyer what that means. If you hide a serious problem and the buyer finds out later, they may have legal grounds to come after you.

Bill of sale vs. title — what is the difference

The title is the legal document that proves who owns the car. It is issued by the state and has your name on it. When you sell the car, you sign the back of the title to transfer ownership to the buyer. The buyer then takes the signed title to the DMV to register the car in their name.

The bill of sale is a record of the transaction — it shows that a sale happened, when it happened, and for how much. It is not issued by the state; you and the buyer create it together. The bill of sale supports the title transfer by providing proof of the sale and the buyer's information.

You need both documents to sell a car correctly. The title transfers legal ownership; the bill of sale creates a record of the sale. Without the title, the buyer cannot register the car. Without the bill of sale, there is no written proof that a sale took place, which can cause problems for both of you later.

Frequently Asked Questions

Can I sell a car without a bill of sale?

In most states, yes — a bill of sale is not legally required. However, it is strongly recommended because it protects you by proving you no longer owned the car after the sale date. If the buyer gets into an accident or a traffic violation occurs after you sell it, you have written proof you were not the owner. In Maryland, Michigan, Missouri, New Hampshire, Ohio, and South Carolina, a bill of sale is required by law.

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

Do not hand over the keys or title until the bill of sale is signed by both of you. The bill of sale is your protection. If the buyer refuses to sign it, that is a red flag — it suggests they may not intend to register the car properly or they are hiding something. Walk away from the sale if the buyer will not sign.

Do I need to notarize the bill of sale?

Most states do not require notarization, but Maryland, Missouri, New Hampshire, and South Carolina do. Check your state's DMV website to find out. If notarization is required, you and the buyer must both sign the bill of sale in front of a notary public, who will stamp and sign it. This usually costs five to ten dollars.

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

Contact the buyer and ask them to provide a copy of their signed bill of sale. If you cannot reach them, you can request a copy of the title transfer from your state's DMV — the DMV keeps records of all title transfers and can provide proof that the car was registered in the buyer's name on a specific date. This serves as backup proof that the sale occurred.

Can I sell a car with a lien on it using a bill of sale?

You can write on the bill of sale that the car has a lien, but the lender must release the lien before the buyer can register the car in their name. The buyer should not pay you the full sale price until the lien is released. Work with your lender to pay off the loan, get a lien release document, and give that to the buyer along with the signed title and bill of sale.