What a Colorado bill of sale must contain
A Colorado bill of sale for a motor vehicle is a written record that you and the buyer (or seller) sign to document the transfer of ownership. It is not the title itself — that is a separate document from the Colorado Division of Motor Vehicles — but it serves as proof of the transaction and protects both parties if questions arise later about who owned the vehicle on a specific date.
Colorado law does not mandate a specific form or exact wording for a bill of sale. However, the document must include the vehicle identification number (VIN), the year, make, and model of the vehicle, the sale price, the date of the sale, and the printed names and signatures of both the seller and the buyer. If either party is a business, include the business name and the individual's title or role.
You should also record the odometer reading at the time of sale. While Colorado does not require this on the bill of sale itself, the buyer will need to report the mileage when registering the vehicle with the DMV, and having it documented protects the seller against later claims of odometer fraud.
Key Takeaways
- Colorado does not require a specific bill of sale form, but the document must include the VIN, vehicle year/make/model, sale price, date, and signatures of both parties.
- The bill of sale is separate from the title and does not transfer ownership by itself — you must also submit the title to the Colorado Division of Motor Vehicles.
- Recording the odometer reading on the bill of sale protects both the seller and buyer and is required information for DMV registration.
- Keep a copy of the signed bill of sale for your records; the buyer will need their copy when they register the vehicle.
When you need a bill of sale in Colorado
You need a bill of sale whenever you sell a motor vehicle to another person or business. This includes private sales between individuals, sales from a dealer to a buyer, and sales of used vehicles. If you are buying a vehicle, you should always ask the seller for a signed bill of sale before handing over money.
The bill of sale is your proof of purchase and the date you became the owner. This matters if the vehicle is involved in an accident or legal issue before you register it, or if a dispute arises about when the sale occurred. Without a bill of sale, you have no written record of the transaction.
How to create a Colorado bill of sale
You can write a bill of sale by hand or type it. There is no official Colorado form required, though the Colorado Division of Motor Vehicles website offers a sample bill of sale that you can read and use as a template. Using a template ensures you do not miss required information.
The document should be clear and straightforward. Include the seller's full name and address, the buyer's full name and address, the vehicle details (VIN, year, make, model, color, and license plate number if available), the sale price in dollars, and the date of the sale. Both the seller and buyer must sign and print their names. If either party cannot be present, some people use notarization to verify signatures, though Colorado does not require it for a bill of sale.
Make at least two copies — one for the seller and one for the buyer. If you are trading in a vehicle or the sale involves a lienholder (a bank or finance company with a claim on the vehicle), keep a third copy for your records.
What happens after you sign the bill of sale
Signing the bill of sale does not complete the ownership transfer in Colorado. The buyer must take the signed bill of sale, the title, and proof of insurance to a Colorado Division of Motor Vehicles office to register the vehicle in their name. The seller must sign the back of the title (the assignment section) to release ownership.
The buyer has up to 10 days from the date of purchase to register the vehicle. If they do not register within that window, they may face late fees. The bill of sale serves as proof of the purchase date if there is any question about whether registration was timely.
The seller should keep their copy of the signed bill of sale for at least a few years. If the vehicle is later involved in a crime or accident and the seller is contacted, the bill of sale proves they no longer owned it at that time.
Special situations: Liens and trade-ins
If the vehicle has a lien on it — meaning a bank or finance company has a claim against it — the bill of sale should note this. Write something like "Vehicle subject to lien held by [Lender Name]" on the document. The seller is responsible for paying off the lien before the title can be transferred to the buyer, unless the buyer agrees in writing to assume the debt.
If you are trading in a vehicle as part of the purchase of another vehicle, the dealer will handle the bill of sale for the trade-in. You will still receive a bill of sale for the vehicle you are purchasing, and you should keep it with your other ownership documents.
Common mistakes to avoid
Do not leave the sale price blank or write "as is" instead of an actual dollar amount. The DMV and insurance companies need the sale price for registration and valuation purposes. If you are selling the vehicle for less than market value (perhaps to a family member), still write the actual amount you received.
Do not forget to include the VIN. This is the most important identifier and prevents confusion if there are multiple vehicles of the same year and model. The VIN is on the title, the vehicle's dashboard, and the driver's side door jamb.
Do not sign the bill of sale before all information is filled in. Once signed, it is a legal document, and blank spaces can be filled in later by someone else, creating liability for you.
Where to find a Colorado bill of sale template
The Colorado Division of Motor Vehicles does not require you to use an official form, but you can find a sample bill of sale on the DMV website under their forms section. You can also search online for "Colorado bill of sale" and find templates from legal document websites, though verify that any template you use includes all the required information listed above.
If you are uncomfortable creating your own document, you can have an attorney draft one, though this is usually unnecessary for a straightforward private sale. Some title companies and notary publics also offer bill of sale preparation services for a small fee.
Frequently Asked Questions
Does Colorado require a notarized bill of sale?
No, Colorado does not require notarization for a bill of sale. Both parties signing in front of each other is sufficient. However, some people choose to have it notarized for extra protection, especially in high-value sales or when the parties cannot meet in person.
What if I lose my copy of the bill of sale after I sell the vehicle?
If you are the seller, contact the buyer and ask for a copy. If you cannot reach them, the title transfer record at the Colorado DMV will show when the vehicle was registered in the new owner's name, which serves as proof of when you sold it. Keep the bill of sale with your important documents to avoid this problem.
Can I use a bill of sale from another state?
Yes, as long as it contains all the required information (VIN, vehicle details, sale price, date, and signatures). However, when you register the vehicle in Colorado, the DMV may ask for a Colorado-specific bill of sale. It is simpler to create one that matches Colorado's expectations from the start.
Do I need a bill of sale if I am inheriting a vehicle?
No, inheritance is not a sale. You will need a probate court order or other legal document showing you inherited the vehicle, which you present to the DMV instead of a bill of sale when you register it in your name.
What if the seller will not give me a bill of sale?
Do not complete the purchase. A bill of sale is your proof of ownership and purchase date. Without it, you have no written record of the transaction, and you may face problems registering the vehicle or proving you own it if a dispute arises later.