What a bill of sale is and why Illinois requires one

A bill of sale is a written record that you sold a car to someone else. It names the buyer, the seller, the vehicle, and the price paid. In Illinois, a bill of sale is not required by law to transfer ownership — the title document itself does that — but it protects both you and the buyer by creating a paper trail of the transaction. If a dispute arises later about who owned the car on a specific date, or what was promised at the time of sale, the bill of sale is your evidence.

The bill of sale also serves as proof of the sale price, which the buyer needs when they register the car with the Illinois Secretary of State. The state uses the sale price to calculate the title transfer fee. Without a bill of sale, the buyer may have to provide other proof of what they paid, or the state may estimate a value based on similar vehicles.

You can create a bill of sale on your own using a template, or you can use the form provided by the Illinois Secretary of State. Both are legally valid. The key is that the document must be signed by both the buyer and the seller, and it should be kept by both parties.

Key Takeaways

  • A bill of sale protects both buyer and seller by documenting the sale price, vehicle details, and the date of transfer, even though it is not legally required in Illinois.
  • The buyer needs the bill of sale to show the Secretary of State when they register the car and transfer the title into their name.
  • You can write your own bill of sale using a template or read the Illinois Secretary of State form, as long as both parties sign it.
  • Keep a copy of the signed bill of sale for your records; do not rely on the buyer to provide it later if a question comes up.

What information to include on an Illinois bill of sale

The bill of sale must include the vehicle identification number (VIN), which appears on your title and on the driver's side of the dashboard. It also needs the make, model, year, and color of the car. Include the odometer reading on the date of sale — this is required by federal law and prevents odometer fraud. Write out the exact sale price in both numbers and words (for example, "Five Thousand Dollars ($5,000.00").

Add the full legal names and addresses of both the buyer and the seller. If the car is being sold by a business or dealership, use the business name and the address of the business location. Include the date the sale took place. Both the buyer and the seller must sign and print their names on the bill of sale. Some people also add the date each party signed, which can be different from the sale date if the paperwork is completed later.

You can add a line stating the condition of the car (for example, "sold as-is") or any warranties you are offering. This is optional but useful if you want to be clear about what the buyer is getting. Do not leave blank spaces on the form; if a field does not explore, write "N/A" or draw a line through it.

Where to get an Illinois bill of sale form

The Illinois Secretary of State does not publish an official bill of sale form on its website. However, you can read a template from reputable sources such as the American Automobile Association (AAA) or legal document websites. Many of these templates are free and follow Illinois law. Search for "Illinois bill of sale template" to find options.

You can also write your own bill of sale from scratch using the information listed above. There is no required format or wording — as long as it contains the essential details and is signed by both parties, it is valid. Some people type it in a word processor, print it, sign it by hand, and make copies. Others fill out a printed template by hand.

If you are selling through a dealership or a private party sale service, they may provide their own bill of sale form. Check whether it includes all the required information before you sign. If it is missing anything important, ask them to add it or create your own.

How to sign and execute the bill of sale

Print or write out the bill of sale clearly so both parties can read it. Go through each line with the buyer to make sure the information is correct — especially the VIN, sale price, and odometer reading. Both you and the buyer should sign the document in front of each other if possible. Some people have the signatures notarized, which adds an extra layer of proof, though it is not required in Illinois.

Make at least two copies: one for you and one for the buyer. If the buyer is financing the car through a bank or credit union, they may need an additional copy to give to the lender. Keep your copy in a safe place with your other vehicle records. The buyer will need their copy when they go to the Secretary of State to transfer the title.

Do not sign a blank bill of sale and hand it to the buyer to fill in later. Fill in all the details first, review them together, and then sign. This prevents disputes about what was written after you signed.

What happens after you sign the bill of sale

Once you have signed the bill of sale, your responsibility as the seller is largely complete. The buyer takes the bill of sale, along with the signed title, to the Illinois Secretary of State to transfer ownership into their name. This process typically takes a few weeks. During that time, the car is still registered in your name, so you may receive mail about it. Forward any mail to the buyer or let them know it is coming.

If the buyer does not transfer the title promptly and the car is involved in an accident or gets a traffic ticket, you could be held liable because you are still the registered owner. For this reason, some sellers notify the Secretary of State that they have sold the vehicle, even though it is not required. You can do this by mailing a copy of the bill of sale to the Secretary of State's office with a note explaining that you no longer own the car.

Keep your copy of the bill of sale indefinitely. If a question arises about when you sold the car or what condition it was in, the bill of sale is your proof. It also documents that you disclosed the odometer reading, which protects you if the buyer later claims the odometer was rolled back.

Selling a car with a loan or lien on the title

If you still owe money on the car, the lender's name appears on the title as a lienholder. You cannot transfer a clear title to the buyer until the lien is removed. The bill of sale can still be signed and the sale can still take place, but the buyer cannot register the car until the lien is paid off.

Work with your lender to pay off the loan before or at the time of sale. Some lenders allow the buyer's bank to pay off your loan directly as part of the financing process. Others require you to pay it off yourself and then request a lien release from your lender. Once the lien is released, the lender sends you a clear title, which you then sign over to the buyer. The bill of sale documents the sale price and terms, and the clear title completes the ownership transfer.

Do not sign the title over to the buyer until the lien is removed. If you do, the buyer will not be able to register the car, and you will still be responsible for the loan.

Frequently Asked Questions

Do I have to notarize the bill of sale in Illinois?

No, notarization is not required in Illinois. A bill of sale signed by both the buyer and the seller is legally valid without a notary. However, having it notarized adds extra proof that both parties signed it willingly, which can be useful if a dispute arises later. A notary public can notarize the document for a small fee, usually $5 to $15.

What if the buyer does not transfer the title right away?

The car remains registered in your name until the buyer completes the title transfer with the Secretary of State. If you are concerned about liability, you can send a copy of the signed bill of sale to the Secretary of State with a letter stating that you sold the vehicle on a specific date. Keep a copy of that letter for your records. The buyer is responsible for transferring the title; you cannot force them to do it, but the bill of sale proves you no longer own the car.

Can I sell a car without a bill of sale?

Technically yes, because Illinois does not require a bill of sale by law. However, it is not advisable. Without a bill of sale, there is no written record of the sale price, the date, or the condition of the car. If the buyer later claims you misrepresented the vehicle or disputes the price, you have no documentation to support your side. A bill of sale takes a few minutes to create and protects both parties.

What if I lost my copy of the bill of sale?

Ask the buyer for a copy of their signed version. If they cannot provide one, you can recreate the bill of sale from memory and have both parties sign it again, noting that it is a duplicate. Keep the new copy in a safe place. Going forward, store important documents like the bill of sale in a file or folder you can easily locate.

Does the bill of sale need to match the price on the title?

The bill of sale documents the actual sale price between you and the buyer. The title itself does not show a price — it only shows ownership. The Secretary of State uses the sale price from the bill of sale to calculate the title transfer fee. If the bill of sale price and the actual price differ, use the actual price on the bill of sale, not an inflated or reduced amount, as misrepresenting the sale price can have tax and legal consequences.