What a Colorado bill of sale does and when you need one

A bill of sale is a written record that you sold a car to someone else, or that someone sold it to you. In Colorado, it documents the sale price, the vehicle details, the seller's name and signature, and the buyer's name and signature. The state does not require a bill of sale to transfer ownership — that happens through the title document itself — but a bill of sale protects both of you by creating proof of the transaction.

You need a bill of sale when you buy or sell a used car from a private party (not a dealership). Dealerships create their own paperwork. A bill of sale is also useful if you are selling a car to a family member, donating it, or trading it in privately. It becomes important if there is ever a dispute about who owned the car on a certain date, what was promised at the time of sale, or what price was actually paid.

Colorado does not have an official state bill of sale form, but the Colorado Department of Revenue Motor Vehicles Division recognizes standard bill of sale language. You can write one yourself, use a template from a legal website, or read one from the Colorado Motor Vehicles Division website. All versions work the same way: they are signed by both parties and kept as proof of the transaction.

Key Takeaways

  • Colorado does not require a bill of sale to transfer a car title, but one protects both buyer and seller by documenting the sale price, date, and vehicle details.
  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
  • The buyer needs the bill of sale and the signed title to register the car with the Colorado Department of Revenue Motor Vehicles Division.
  • Keep a copy of the signed bill of sale for your records even after the title transfer is complete, because it proves when you owned the vehicle.

What information to include in a Colorado bill of sale

A bill of sale must contain the vehicle identification number (VIN), which you find on the dashboard at the base of the windshield on the driver's side, or on the title document itself. Include the year, make, model, and color of the car. Write the exact sale price in both numbers and words — for example, "One Thousand Five Hundred Dollars ($1,500.00)" — so there is no confusion later.

Add the date of the sale and the names and addresses of both the seller and the buyer. The seller should write their signature and print their name. The buyer should do the same. Some people also include the odometer reading at the time of sale, which is useful information but not required. If there are any conditions — for example, "sold as-is" or "with a warranty until [date]" — write those clearly on the bill of sale so both parties understand what was promised.

You do not need to notarize a bill of sale in Colorado, though some people choose to do so for extra proof. A notarized signature costs a small fee at a bank, credit union, or notary public office, but it is not necessary for the document to be valid or for the title transfer to go through.

How to transfer the title after you sign the bill of sale

The bill of sale itself does not transfer ownership. The title document does. After you and the buyer sign the bill of sale, the seller must sign the back of the title certificate and give it to the buyer. The title has a section labeled "Seller's Signature" — that is where the seller signs and prints their name.

The buyer then takes the signed title, the signed bill of sale, and proof of insurance to the Colorado Department of Revenue Motor Vehicles Division office in their county. The buyer also needs to bring a form called the "process for Colorado Title" (Form MV-14), which is available on the Motor Vehicles Division website or at any office. The buyer pays a title transfer fee, which varies by county but is typically under $50.

The Motor Vehicles Division will issue a new title in the buyer's name. This process usually takes one to two weeks. Until the new title arrives, the buyer should not drive the car on public roads, because the registration and insurance must match the title holder's name.

What happens if the seller does not sign the title

If the seller refuses to sign the title or cannot be found after the sale, the buyer cannot legally register the car in Colorado. The bill of sale alone does not transfer ownership. The buyer would need to contact the Motor Vehicles Division to ask about a bonded title, which is a title issued when the original title is lost, missing, or the seller will not cooperate.

A bonded title requires the buyer to purchase a surety bond, which costs money and takes time to arrange. The bond protects the state in case the original owner later claims the car was stolen or sold without permission. This is why it is critical to get the seller's signature on the title before handing over money, and to keep the signed bill of sale as proof that the sale was legitimate.

Protecting yourself as a buyer: what to check before you sign

Before you sign a bill of sale, verify that the VIN on the document matches the VIN on the car itself and on the title. Check that the seller's name on the title matches the seller's name on the bill of sale. If the names do not match — for example, if the title says "John Smith" but the seller introduces themselves as "Johnny Smith" — ask for a legal explanation or proof that they are the same person.

Ask the seller to show you the title in person and confirm that there are no liens on it. A lien means a bank or lender has a claim on the car because the seller still owes money on it. The title will say "Lienholder" if this is the case. If there is a lien, the lender must sign off on the sale and release the lien before you can register the car. Do not sign a bill of sale or hand over money until the lien is cleared.

Take a photo of the odometer, the VIN on the dashboard, and the title itself before you sign anything. These photos are proof of what the car looked like and what the title said on the day of sale. Keep them with your copy of the bill of sale.

Protecting yourself as a seller: what to do after the buyer leaves

After the buyer drives away, keep a copy of the signed bill of sale and a record of the buyer's name, address, and phone number. Do not sign the title until you have the money in hand and it has cleared your bank account if it was a check. Once you sign the title, you have transferred ownership, and you are no longer responsible for the car — but you are also no longer able to prove you sold it if there is a dispute later.

Some sellers notify the Colorado Department of Revenue Motor Vehicles Division that they have sold the car, even though it is not required. You can do this by sending a letter to the Motor Vehicles Division with the buyer's name, the sale date, and the VIN. This creates a record that you no longer own the vehicle, which protects you if the buyer gets into an accident or receives a traffic ticket before they register the car in their name.

Keep your copy of the signed bill of sale and the title transfer receipt for at least three years. If the buyer later claims you misrepresented the car or did not disclose a problem, the bill of sale is your proof of what was actually promised at the time of sale.

Using a bill of sale for a donation or trade-in

If you are donating a car to a charity, you still need a bill of sale or donation form. The charity will provide their own form, which serves the same purpose: it documents that you gave them the car and that they accepted it. You sign it, they sign it, and you keep a copy for your tax records. The charity will handle the title transfer on their end.

If you are trading in a car at a dealership, the dealership creates the paperwork — you do not need a separate bill of sale. The dealership's paperwork serves as the bill of sale and handles the title transfer as part of the sale of the new car.

If you are selling a car to a family member or friend, use the same bill of sale process as you would for any private sale. Even though you know the person, a signed bill of sale protects both of you and makes the title transfer smoother.

Frequently Asked Questions

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

Technically yes — the bill of sale is not required by law. But without one, you have no written proof of the sale price, the date, or the condition of the car at the time of sale. If there is ever a dispute, you have no documentation to back up your version of events. A bill of sale takes five minutes to write and costs nothing.

What if I lost the bill of sale after I sold the car?

If you are the seller and you no longer have your copy, you cannot get another one unless the buyer agrees to sign a duplicate. If you are the buyer and you lost your copy, you still have the title in your name, which proves you own the car. Keep the bill of sale with your title and insurance documents for future reference.

Do I need a bill of sale if I am buying from a used car lot?

No. Used car lots and dealerships create their own sales contracts and paperwork that serve the same purpose as a bill of sale. That paperwork is what you sign, and it documents the sale. You do not need a separate bill of sale.

Can I write a bill of sale on any piece of paper?

Yes. Colorado does not require a specific form or format. You can write it by hand on notebook paper as long as it includes the VIN, sale price, date, and both signatures. Many people prefer to type it or use a template so it is clear and straightforward to read, but handwritten is legally valid.

What if the buyer does not show up to register the car?

That is the buyer's responsibility. Once you sign the title and the bill of sale, you have done your part. The buyer must take those documents to the Motor Vehicles Division to register the car. If they do not, the car remains in your name on the state records until they do. You can protect yourself by keeping a record that you notified the Motor Vehicles Division of the sale.