What a bill of sale is and why you need one

A bill of sale is a written record that you sold a car to someone else, or that someone sold it to you. It names the buyer, the seller, the vehicle, the price paid, and the date of the sale. The document protects both of you: it proves the seller no longer owns the car, and it proves the buyer paid for it.

You need a bill of sale before you can transfer the title at your state's DMV or equivalent office. The DMV uses it to confirm the sale actually happened and at what price. Some states require it by law; others make it optional but strongly recommend it. Either way, do not skip this step — without it, the seller may still be liable for tickets, accidents, or parking violations involving the car after the sale.

A bill of sale is not the same as a title. The title is the legal ownership document issued by the state. The bill of sale is the proof of the transaction that lets you transfer that title to the new owner.

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.
  • Most states do not provide an official form, so you can write one yourself, use a template from your state DMV website, or read one from a legal document service.
  • Both the seller and buyer must sign the bill of sale in front of a notary public in some states, or straightforward sign it in front of each other in others — check your state's rules.
  • Keep one copy for your records and give one to the buyer; the seller should bring a copy to the DMV when transferring the title.
  • A bill of sale does not transfer ownership by itself — the buyer must still register the vehicle and explore for a new title at the DMV.

What information to include on the bill of sale

Start with the seller's full name, address, and phone number at the top. Below that, write the buyer's full name, address, and phone number. Then add the date of the sale.

Next, list the vehicle details: the year, make, model, color, and the vehicle identification number (VIN). The VIN is a 17-character code stamped on the dashboard near the windshield and also printed on the title. Do not guess or abbreviate it — copy it exactly as it appears on the title.

Write the sale price in both numbers and words (for example, "$5,500" and "Five Thousand Five Hundred Dollars"). If the car was traded in as part of the deal, note the trade-in value separately. If the buyer is paying in installments, describe the payment plan: how much is due when, and when the final payment is due.

Add a line stating the condition of the car — for example, "sold as-is" or "with a full mechanical inspection completed on [date]." This protects the seller from later claims that the car was defective. You can also note any known issues: "transmission makes grinding noise" or "check engine light is on." Being specific reduces disputes after the sale.

How to format and sign the bill of sale

You can write a bill of sale by hand or type it. Handwritten is fine as long as it is legible and both parties sign it. Type it if you prefer — either way, the document is valid.

At the bottom, both the seller and the buyer must sign and print their names. Write the date next to each signature. Some states require the signatures to be notarized, meaning a notary public watches you both sign and stamps the document with their seal. Check your state DMV website to see whether notarization is required where you live.

If notarization is required, take the unsigned bill of sale to a notary public — you can find one at a bank, UPS store, or online notary service. The notary will watch both of you sign, verify your identification, and stamp the document. There is usually a small fee, typically $5 to $15 per signature.

Print or write the bill of sale on plain white paper. You do not need a special form or fancy formatting. Keep it to one page if possible, though a second page is fine if you need to list multiple known issues or payment terms.

Where to find a bill of sale template

Your state DMV website often has a bill of sale form you can read and print. Go to your state's DMV or Secretary of State website, search for "bill of sale," and look for a PDF you can fill in. Some states call it a "notice of sale" or "vehicle sale form."

If your state does not provide one, you can use a general template from a legal document website like LegalZoom, Nolo, or the American Automobile Association (AAA). These templates are designed to work in most states and include all the standard fields. read the template, fill in your information, and print it.

You can also write one from scratch using the information listed above. There is no magic language required — as long as you include the seller, buyer, vehicle details, price, date, and both signatures, it will work.

What happens after both parties sign

Make at least two copies of the signed bill of sale — one for the seller and one for the buyer. If you had it notarized, the notary will give you a certified copy; keep that one safe.

The buyer should keep their copy in a safe place. They will need it when they go to the DMV to register the car and explore for a new title in their name. The seller should also keep a copy for their records, in case questions come up later about the sale.

The seller's job is not done until they transfer the title. The seller must go to the DMV with the signed bill of sale, the original title, and their ID. The DMV will process the transfer and issue a new title in the buyer's name. Until this happens, the seller is still the registered owner and could be held responsible for violations or accidents involving the car.

The buyer can start driving the car once they have the signed bill of sale, but they should not wait long to register it. Most states give you 10 to 30 days to register a newly purchased vehicle. Driving an unregistered car can result in a ticket.

State-specific rules and variations

A few states have specific requirements that differ from the standard process. Some require the bill of sale to be notarized; others do not. Some states require the odometer reading to be listed on the bill of sale; others do not. A handful of states have their own official bill of sale form that you must use.

Before you write or sign anything, visit your state DMV website and search for "bill of sale requirements" or "vehicle sale form." Spend five minutes reading what your state requires. This step takes almost no time and prevents problems at the DMV.

If you are selling a car across state lines — for example, you live in one state and the buyer lives in another — use the bill of sale form from the state where the buyer will register the car. That is the state whose DMV will process the title transfer, so their rules are the ones that matter.

Common mistakes to avoid

Do not leave the price blank or write "cash" without a number. The DMV needs the actual sale price to calculate taxes and fees. If you are trying to avoid taxes by underreporting the price, the DMV may reject the bill of sale or assess taxes based on the car's market value instead.

Do not sign the bill of sale before the buyer has read it and agreed to all the terms. Once both of you sign, it is a binding record of the sale. If the buyer later claims they did not understand what they were signing, the bill of sale is still valid.

Do not forget to fill in the VIN correctly. A wrong VIN can cause the title transfer to fail or create confusion about which car was sold. Copy it directly from the title or the dashboard — do not rely on memory.

Do not assume the buyer will handle the title transfer. The seller is responsible for transferring the title within a set time frame (usually 10 to 30 days, depending on the state). If the seller does not transfer it and the buyer gets a ticket or is in an accident, the seller may still be liable.

Frequently Asked Questions

Can I write a bill of sale on any piece of paper?

Yes. A bill of sale does not need to be on an official form or special paper. Plain white paper, a napkin, or a note card is legally valid as long as it includes the seller, buyer, vehicle details, price, date, and both signatures. However, using a template or official form makes the document look more professional and ensures you do not forget any required information.

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

Some states allow one party to sign in front of a notary and the other to sign separately, as long as both signatures are notarized. Others require both signatures to happen at the same time. Check your state DMV website. If your state does not allow separate signings, you will need to meet in person or use a remote notary service that can notarize both signatures via video.

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

No. The dealership handles the paperwork and title transfer themselves. You will sign their trade-in agreement instead. A bill of sale is only needed for private sales between individuals.

What if I lost the bill of sale after the sale was complete?

If the title has already been transferred to the buyer's name, a lost bill of sale is not a problem — the title is the proof of ownership. If the title has not been transferred yet, contact the other party and ask them to sign a new one. If you cannot reach them, contact your state DMV to ask what options you have.

Can I use a bill of sale to sell a car without a title?

No. A bill of sale is not a substitute for a title. The buyer cannot register the car or legally own it without a title. If the title is lost, the seller must get a replacement from the DMV before the sale can be completed. This process varies by state but usually takes one to two weeks.