What a bill of sale does and why you need one

A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. It documents the date, the vehicle details, the price, and the names and signatures of both the buyer and seller. When you sign it, you are both confirming that the sale happened and on what terms.

A bill of sale protects both of you. For the seller, it proves you no longer own the vehicle — important if something goes wrong after the sale and someone tries to hold you responsible. For the buyer, it proves you paid for the vehicle and have a right to register it in your name. Many states require a bill of sale before the buyer can transfer the title at the DMV.

You can create one yourself using a free template, have a notary witness it (which some states require), or buy a pre-printed form from an office supply store. The free printable route works in all 50 states as long as you include the required information and both parties sign it.

Key Takeaways

  • A bill of sale is a written record of a vehicle sale that protects both buyer and seller and is required by most states before the buyer can register the vehicle.
  • Free templates are available online and work in all states if they include the vehicle details, sale price, buyer and seller names, and both signatures.
  • Some states require the bill of sale to be notarized; check your state's DMV website to confirm whether notarization is mandatory where you live.
  • The buyer should keep the original signed bill of sale and bring it to the DMV when registering the vehicle in their name.
  • A bill of sale is not the same as a title — the title is the legal ownership document, while the bill of sale is proof that the sale occurred.

What information must be on the bill of sale

Every bill of sale should include the vehicle identification number (VIN), make, model, year, and color. You can find the VIN on the dashboard, the driver's side door jamb, or the title document itself. Include the odometer reading on the day of sale — this is required in most states and helps prevent odometer fraud.

Write down the full names, addresses, and phone numbers of both the seller and the buyer. Include the sale price in dollars and cents. If the sale included a trade-in, write that down too. Add the date the sale occurred, and leave space for both parties to sign and print their names.

Some states ask for additional details, such as whether the vehicle has a lien (a loan against it) or whether the seller is disclosing known mechanical problems. Check your state's DMV website to see if there are state-specific requirements beyond the basics.

Where to find free bill of sale templates

Your state's DMV website often has an official bill of sale form you can read and print for free. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, the National Association of Secretaries of State maintains links to state-specific forms.

General legal document sites like LawDepot, Rocket Lawyer, and Nolo offer free templates that work across states. These are generic but include all the required fields. read the PDF, print it, fill it out by hand or on your computer, and have both parties sign it before the sale is complete.

You can also create one from scratch in a word processor if you prefer. The format does not matter — what matters is that it contains all the required information and both parties sign it. Keep the original signed copy; the buyer will need it at the DMV.

Whether notarization is required in your state

Notarization means a notary public — a person authorized by the state — watches both parties sign the bill of sale and confirms their identities. Some states require this; others do not. A few states require notarization only if the vehicle is being sold by someone other than the registered owner.

Check your state's DMV website or call the DMV directly to confirm whether notarization is mandatory. If it is, you will need to take the unsigned bill of sale to a notary before either party signs it. Notaries are available at banks, UPS stores, libraries, and title companies, usually for a small fee (typically $5 to $15).

If notarization is not required in your state, you do not need it — but having it done anyway does not hurt and can add an extra layer of protection if a dispute arises later.

How to fill out and sign the bill of sale

Print the template or form you have chosen. Fill in all the blanks with accurate information — the VIN, vehicle details, sale price, odometer reading, and the names and addresses of both parties. Use black or blue ink if you are writing by hand; avoid pencil, which can be erased.

Both the buyer and seller should sign and print their names on the form. If the vehicle is being sold by a business or a deceased person's estate, the person signing must have the legal authority to do so — for example, a power of attorney or executor. If you are unsure whether the person signing has that authority, ask to see documentation.

Make at least two copies — one for the buyer, one for the seller. If the sale is being notarized, the notary will watch the signing and may keep a copy. The buyer should bring the original or a certified copy to the DMV when registering the vehicle.

What happens after you sign the bill of sale

The buyer takes the signed bill of sale to the DMV along with the title, proof of insurance, and a completed registration process. The DMV will transfer the title into the buyer's name. The seller's responsibility ends once the bill of sale is signed — the seller is no longer the legal owner.

The seller should keep a copy of the signed bill of sale for their records. If the buyer does not register the vehicle promptly and something happens to it, the seller has proof they no longer owned it. Some sellers also take a photo of the buyer's driver's license and the signed bill of sale as extra documentation.

If the vehicle has a lien (an outstanding loan), the seller must pay off the loan before the title can be transferred. The bill of sale should note whether a lien exists. The buyer should never accept a vehicle with an unpaid lien unless they understand they are responsible for paying it off.

Differences between a bill of sale and a title

A title is the legal document that proves who owns the vehicle. It is issued by the state and has the registered owner's name on it. A bill of sale is proof that a sale occurred — it documents the transaction but does not transfer ownership by itself.

The buyer needs both documents to complete the registration. The bill of sale proves the buyer paid for the vehicle and has the right to own it. The title is then transferred from the seller's name to the buyer's name at the DMV. Without a bill of sale, the DMV will not process the title transfer in most states.

If you are buying a vehicle, make sure you receive both the signed bill of sale and the original title before you hand over payment. If you are selling, do not sign the title until you have been paid in full and the bill of sale is signed.

Frequently Asked Questions

Can I use a bill of sale from another state?

Yes, a bill of sale from another state will work as long as it includes all the information your state's DMV requires. However, using your own state's form is simpler because it will already have the correct format and fields. Check your state DMV website first before using an out-of-state template.

What if the seller will not sign the bill of sale?

Do not hand over payment until the bill of sale is signed. A signed bill of sale is your proof of purchase. If the seller refuses to sign, the sale should not go forward. If you have already paid and the seller refuses to sign, contact your state's attorney general or a local consumer protection office.

Do I need a bill of sale if I am selling a vehicle to a family member?

Yes. Even sales between family members require a bill of sale in most states. The DMV will ask for it when the buyer registers the vehicle. A bill of sale protects both of you by documenting that the sale occurred and on what terms, regardless of your relationship.

Can I write a bill of sale by hand, or does it have to be typed?

Handwritten bill of sales are legal in all states as long as the information is clear and legible, both parties sign it, and all required fields are filled in. Typed is cleaner and easier to read, but handwritten works just as well.

What should I do if I lost the bill of sale after I bought the vehicle?

Contact the seller and ask for a copy. If the seller will not provide one, contact your state's DMV — they may have a record of the title transfer. In some cases, you can request a duplicate bill of sale from the seller in writing and have it notarized to create a record of the original sale.