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 who owned a car, who owns it now, and when the transfer happened. It is signed by both the seller and the buyer. The bill of sale is not the same as the title — the title is the legal proof of ownership that the state issues. The bill of sale is your record of the transaction itself, and it protects both of you if questions come up later about who sold the car, when, and for how much.
You do not need a bill of sale to transfer a title at your state's motor vehicle department, but you should create one anyway. If the buyer later claims the car was never paid for, or if the seller later claims they never sold it, the bill of sale is your proof. It also creates a paper trail for tax purposes and helps the buyer prove they own the car if they need to register it before the title transfer is complete.
Key Takeaways
- A bill of sale must include the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the sale price, and the date of sale.
- Both the seller and buyer must sign the bill of sale in front of a witness or notary public, depending on your state's requirements.
- Some states have an official bill of sale form; others accept any written document that includes the required information.
- Keep a copy for your records and give the other copy to the other party before either of you leaves.
- A bill of sale does not transfer the title — you still need to file the title transfer with your state's motor vehicle department.
What information must go on the bill of sale
The bill of sale must include the seller's full name, address, and phone number. It must also include the buyer's full name, address, and phone number. Both parties need to be clearly identified so there is no confusion about who is selling and who is buying.
The vehicle information section must include the vehicle identification number (VIN), which is a 17-character code stamped on the driver's side of the dashboard and on the title itself. Include the year, make, model, and color of the car. List the odometer reading at the time of sale — this is important for the buyer's records and protects the seller against later claims that the mileage was rolled back.
Write the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). State the date of the sale. If the car is being sold as-is, write that clearly. If there are any known mechanical problems or damage, list them. This protects the seller from later claims that the buyer did not know about a problem.
Whether your state requires a specific form
Some states provide an official bill of sale form through the motor vehicle department website. Check your state's motor vehicle department first — search "[your state] motor vehicle bill of sale form" to see if one exists. If your state has an official form, use it; it will be accepted everywhere in that state and will include all the fields the state requires.
If your state does not have an official form, you can write your own bill of sale on plain paper or read a template from a legal document site. The document does not need to be fancy or printed on special paper. It must be legible, signed by both parties, and include all the information listed above. Many people type it up, print it, and sign it by hand.
A few states require the bill of sale to be notarized — meaning a notary public must witness the signatures. Check your state's motor vehicle department website or call them to ask whether notarization is required. If it is, you will need to take the bill of sale to a notary before either party signs it, or have both parties sign it in front of the notary.
How to fill out and sign the bill of sale
Write or type all the information clearly. Use black or blue ink if you are writing by hand — avoid pencil, which can be erased. Fill in every blank. If a section does not explore (for example, if there are no known problems with the car), write "None" rather than leaving it blank.
Both the seller and the buyer must sign and date the bill of sale. Some states require the signatures to be witnessed by a third party or notarized. If your state requires a witness, both parties should sign in front of that witness, who then signs and dates the document as well. If notarization is required, take the unsigned bill of sale to a notary public, and both parties must sign in front of the notary.
Make at least two copies — one for the seller and one for the buyer. If there is a witness or notary, they may keep a copy as well. Do not leave until both parties have a signed copy in hand. The seller should keep their copy until the title transfer is complete at the motor vehicle department, in case there are questions.
What to do with the bill of sale after you sign it
The buyer should keep their copy with the car's paperwork. If the buyer needs to register the car before the title transfer is complete, the bill of sale proves they own it. The buyer will also need the bill of sale when they file the title transfer at the motor vehicle department — some states require it as proof of the sale.
The seller should keep their copy until the title transfer is recorded at the motor vehicle department. This usually takes a few weeks. Once the title is transferred to the buyer's name, the seller's obligation is complete, but keeping the copy for a year or two is still a good idea in case a question comes up later.
Do not throw away the bill of sale after the title transfer is done. Keep it with your vehicle records. If you ever need to prove when you sold the car, how much you sold it for, or what condition it was in, the bill of sale is your proof.
Common mistakes to avoid when writing a bill of sale
Do not leave blanks. Every field should be filled in or marked "N/A" or "None." A blank field can be filled in later by someone else, which defeats the purpose of the document.
Do not use a pen that can be erased or altered. Use permanent black or blue ink. Do not use pencil. Do not cross out information and write over it — if you make a mistake, start over or use white-out and initial the correction.
Do not forget to include the odometer reading. This is required in most states and protects both parties. Do not sign the bill of sale unless you are certain about the sale price, the vehicle information, and the date. Once it is signed, it is a legal document.
Do not assume the bill of sale transfers the title. It does not. The buyer still needs to file the title transfer at the motor vehicle department. The seller should not sign over the title until the bill of sale is signed and both parties have copies.
What happens if you lose the bill of sale
If you lose your copy of the bill of sale, you can ask the other party for theirs. If both copies are lost, you can still file the title transfer, but you will not have written proof of the sale price or the condition of the car at the time of sale. This is why it is important to keep your copy in a safe place.
If a dispute arises later — for example, the buyer claims the car was not paid for, or the seller claims they never sold it — the bill of sale is your evidence. Without it, you will have a harder time proving your side of the story. Keep your copy with your important documents, not in the car.
Frequently Asked Questions
Do I need a bill of sale if I am selling a car to a family member?
Yes. Even between family members, a bill of sale protects both of you. It creates a clear record of when the transfer happened and for how much, which matters for insurance, taxes, and the title transfer. Family relationships can change, and a bill of sale prevents misunderstandings.
What if the buyer does not want to sign the bill of sale?
Do not sell the car. A buyer who refuses to sign a bill of sale is a red flag. The bill of sale protects both of you equally. If the buyer will not sign, they may be planning to claim later that they did not buy the car or that they paid a different price. Walk away from the sale.
Can I use a text message or email instead of a written bill of sale?
No. A bill of sale must be a physical document signed by both parties. Text messages and emails are not accepted by motor vehicle departments and are too straightforward to alter or deny. Write it down, print it, and get both signatures on paper.
Do I need to notarize the bill of sale?
It depends on your state. Check your state's motor vehicle department website or call them to ask. Some states require notarization; most do not. If your state does not require it, notarization is optional but adds an extra layer of protection because a notary verifies the identity of both parties.
What if I sell the car but the buyer does not transfer the title right away?
Keep your copy of the bill of sale. If the buyer gets into an accident or breaks the law with the car before the title is transferred, you want proof that you sold it. The bill of sale shows the date of sale and the buyer's name, which protects you from liability. Follow up with the buyer to make sure they file the title transfer within the time limit your state allows.