A bill of sale is a written record that you and the buyer (or seller) both sign to prove the car changed hands

A bill of sale is a document that shows a car was sold from one person to another on a specific date for a specific price. Both the seller and buyer sign it. It serves as proof of the transaction if questions come up later — with the DMV, an insurance company, or in a dispute. You do not need a bill of sale to transfer a title at the DMV, but having one protects both parties and makes the process clearer.

The bill of sale does not transfer ownership by itself. The title does that. But a bill of sale creates a paper trail showing when the sale happened, who was involved, how much was paid, and what condition the car was in. If you are selling a car, it protects you by proving you no longer own it. If you are buying one, it proves you paid for it and when.

Key Takeaways

  • A bill of sale must include the seller's name and address, buyer's name and address, vehicle identification number (VIN), sale price, date of sale, and both signatures.
  • You can write a bill of sale by hand on plain paper or use a template from your state's DMV website, which often has a specific form.
  • Both the seller and buyer should keep a signed copy for their records before the title transfer happens at the DMV.
  • Some states require the bill of sale to be notarized; check your state DMV website to see if yours does.
  • A bill of sale does not transfer the title — it only documents the sale — so you still need to file the title with the DMV afterward.

What information must go on the bill of sale

The bill of sale needs enough detail that anyone reading it knows exactly what was sold, who sold it, who bought it, and for how much. At minimum, include the seller's full name and address, the buyer's full name and address, the vehicle identification number (VIN), the make and model of the car, the year, the sale price in dollars, and the date of the sale.

You should also note the odometer reading on the day of sale and the condition of the car (for example, "good condition" or "as-is with known mechanical issues"). If there are outstanding loans on the car, note that too. Some states require you to disclose whether the car has a salvage title, flood damage history, or other damage. Check your state DMV website to see what disclosures are required where you live.

Both the seller and the buyer must sign and print their names on the bill of sale. Some states require a notary public to witness the signatures; others do not. If your state requires notarization, you will need to take the signed bill of sale to a notary before filing anything with the DMV. The notary will verify your identity and add their seal and signature.

How to find your state's bill of sale form

Most states have an official bill of sale form on their DMV website. Go to your state's DMV site and search for "bill of sale" or "vehicle bill of sale." You will usually find a PDF you can read and print. Some states call it a "Notice of Sale" or "Affidavit of Sale." The form varies by state, so use the one from your state, not another state's version.

If your state does not have an official form, you can write a bill of sale by hand on plain paper. Write it clearly in pen so it cannot be altered later. Include all the information listed above. Both parties sign and date it. This handwritten version is legally valid in most states, though some states prefer or require the official form.

You can also find templates online from legal document sites, but verify that the template matches your state's requirements before you use it. The safest approach is to read your state's official form from the DMV website.

Steps to complete and sign the bill of sale

Start by filling in all the blanks on the form or writing out all required information if you are using a handwritten bill of sale. Use the VIN from the car's title or from the driver's side door jamb. Write out the sale price in both numbers and words (for example, "Five thousand dollars ($5,000)") to avoid confusion. Include the exact date of the sale.

Have the seller sign and print their name first. Then have the buyer sign and print their name. Both signatures must be original — photocopies or digital signatures are not accepted by most DMVs. If your state requires notarization, take the signed bill of sale to a notary public before either party leaves. The notary will check identification and add their seal.

Make at least two copies of the completed, signed bill of sale — one for the seller and one for the buyer. Keep these copies with your other car documents. Do not submit the bill of sale to the DMV unless your state specifically requires it. Most states only require you to submit the title and registration forms.

When notarization is required

Some states require a notary public to witness the signatures on a bill of sale. Others do not require it but allow it. A few states require notarization only if the sale price is above a certain amount. Check your state DMV website or call your local DMV office to find out whether notarization is required where you live.

If notarization is required, you cannot complete the bill of sale at home and have it notarized later. The notary must watch both the seller and buyer sign the document in person. You will need to bring a government-issued ID (driver's license or passport) to the notary. The notary will charge a fee, usually between $5 and $15 per signature. Banks, law offices, and UPS stores often have notaries available.

What happens after you sign the bill of sale

After both parties have signed the bill of sale, the buyer and seller should each keep a copy. The bill of sale itself does not go to the DMV in most states — only the title and registration forms do. However, keep the bill of sale with your records in case the DMV or an insurance company asks for proof of when the sale happened.

The next step is for the buyer to take the signed title and any other required forms to the DMV to register the car in their name. The seller should keep their copy of the bill of sale to prove they no longer own the vehicle. If the seller is asked later about the car, they can show the bill of sale as evidence that they sold it on a specific date.

If there is a loan on the car, the lender's name will be on the title. The buyer cannot register the car until the loan is paid off and the lender releases the title. The bill of sale documents the sale, but the title transfer cannot happen until the lien is cleared.

Common mistakes to avoid

Do not leave blanks on the bill of sale. Every field should be filled in or marked "N/A" if it does not explore. Blank spaces can be filled in later by someone else, which defeats the purpose of the document. Write clearly and use pen, not pencil. Do not use white-out or cross things out — if you make a mistake, start over on a fresh copy.

Do not sign the bill of sale before all the information is filled in. Both parties should review the entire document before signing to make sure all details are correct. Do not assume the buyer will handle the title transfer — as the seller, you should keep your copy of the bill of sale to prove you completed your part of the sale.

Do not confuse the bill of sale with the title. The bill of sale is a receipt for the transaction. The title is the legal document that shows ownership. You need both: the bill of sale to prove the sale happened, and the title transfer to change who the DMV says owns the car.

Frequently Asked Questions

Can I write a bill of sale by hand, or do I have to use an official form?

In most states, a handwritten bill of sale is legal as long as it includes all required information and both parties sign it in pen. However, your state may have an official form that is preferred or required. Check your state DMV website first. If an official form exists, using it is safer because it meets all state requirements.

What if the buyer and seller cannot meet in person to sign?

Both parties should sign the bill of sale in person if possible. If that is not possible, some states allow one party to sign and the other to sign later, as long as both signatures are original. However, if notarization is required in your state, both parties must be present with the notary. Contact your state DMV to ask about remote signing options.

Do I need a bill of sale if I am trading in my car at a dealership?

No. Dealerships handle their own paperwork for trade-ins and do not use a standard bill of sale. The dealership will provide you with documentation of the trade-in value and handle the title transfer themselves. You only need a bill of sale when selling a car directly to another person.

What should I do with the bill of sale after the title is transferred?

Keep your copy of the signed bill of sale with your vehicle records indefinitely. If you are the seller, it proves you no longer own the car. If you are the buyer, it proves when you purchased it and for how much. You may need it for insurance, tax, or dispute purposes years later.

Is a bill of sale the same as a title?

No. A bill of sale documents that a sale happened and records the price and date. A title is the legal document issued by the DMV that shows who owns the car. You need both: the bill of sale to prove the transaction occurred, and the title to show legal ownership.