A bill of sale is a written record that you sold a car and the buyer received it

A bill of sale is a document you and the buyer both sign to prove the vehicle changed hands. It is not the title itself — the title transfers separately through your state's DMV or equivalent agency. The bill of sale is your protection and the buyer's protection: it shows who owned the car, who owns it now, what was paid, and when the handoff happened. Most states do not legally require one, but many do, and even where it is optional, you should write one anyway. It takes 15 minutes and protects you from liability if the buyer gets into an accident or racks up parking tickets after you sell.

Without a bill of sale, if the buyer later gets a parking ticket, is involved in an accident, or commits a traffic violation before the title transfer is processed, you may receive a notice because the state's records still show you as the owner. The bill of sale is your proof that you no longer owned the vehicle when the incident occurred.

Key Takeaways

  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both buyer and seller — anything less and it may not hold up if there is a dispute.
  • Some states require the bill of sale to be notarized; check your state's DMV website or call before you sign to know whether yours does.
  • You should keep a copy for your records even after the title transfers, because it proves you no longer owned the vehicle on a specific date.
  • A bill of sale does not transfer the title — you and the buyer must still file the title transfer with your state's DMV or equivalent agency within the timeframe your state sets.
  • If you sell a car without a bill of sale and the buyer later commits a traffic violation or crime with it, you may be held liable because the state's records still show you as the owner.

What information must go into a bill of sale

Start with the vehicle itself. Write the full Vehicle Identification Number (VIN) — all 17 characters, exactly as it appears on the title or registration. Include the year, make, model, and color. Add the odometer reading on the day of sale. These details make it impossible to confuse this car with another one.

Next, write the names and addresses of both the seller (you) and the buyer. Use the full legal names as they appear on driver's licenses. If there are two sellers or two buyers, list both. Write the sale price in both numbers and words — for example, "$8,500" and "Eight thousand five hundred dollars" — so there is no ambiguity about what was paid. If the sale included a trade-in, note that separately: "Buyer traded in 2015 Honda Civic valued at $3,000; cash payment $5,500."

Add the date of sale. This is the date you and the buyer sign, not the date the title transfer is filed. Write it as month, day, and year. Finally, both you and the buyer must sign and print your names. Some states require the signatures to be notarized; others do not. Check your state's DMV website or call their title section before you meet the buyer so you know whether you need a notary present.

What you should not include in a bill of sale

Do not write anything about the vehicle's condition, mechanical problems, or warranty status. A bill of sale is a record of the transaction, not a warranty document. If you want to sell the car "as-is" with no guarantees, that belongs in a separate as-is statement or in the fine print of a purchase agreement — not in the bill of sale itself. Mixing condition statements into the bill of sale can create confusion about what you are and are not responsible for after the sale.

Do not include personal details like Social Security numbers, phone numbers, or email addresses unless your state's DMV specifically requires them. Most do not. Do not write anything about liens, loans, or whether the car has an outstanding balance. If there is a lien on the vehicle, that is a title issue, not a bill of sale issue, and it must be resolved before the title can transfer. If you are still paying off the car, the lender's name appears on the title itself, and the buyer needs to know that — but the bill of sale is not the place to disclose it.

How to format a bill of sale so it holds up

You can write a bill of sale by hand on plain paper or type it. Handwritten is fine as long as it is legible. Many states provide a template on their DMV website; using your state's official form is the safest route because it includes every field the state requires. If you write your own, keep it straightforward and clear. Number the sections or use headings so a reader can find information quickly.

Print or write two copies — one for you, one for the buyer. Both of you sign both copies. Each person keeps one signed copy. If your state requires notarization, both of you and the notary must sign both copies. The notary will stamp and date them. Do not laminate the bill of sale or the title; some DMVs will not accept laminated documents because they cannot verify the signature or detect tampering.

When your state requires notarization

About half of U.S. states require a bill of sale to be notarized; the other half do not. Some states require it only if the sale price is above a certain amount, or only for certain types of vehicles. Check your state's DMV website for the exact rule — search "[your state] bill of sale notarization requirement" or call the title section directly.

If notarization is required, you and the buyer must both appear in front of a notary public with valid photo ID. The notary will watch you sign, verify your identity, and stamp the document. Notaries are available at banks, UPS stores, law offices, and some libraries. The cost is usually $5 to $15 per signature. If you and the buyer live far apart, you may each get the document notarized separately in your own state, as long as both signatures are notarized before the title transfer is filed.

What happens after you sign the bill of sale

Signing the bill of sale does not transfer the title. You and the buyer must both file a title transfer with your state's DMV or equivalent agency — usually the Department of Motor Vehicles, Secretary of State, or Department of Transportation, depending on your state. The buyer typically files the transfer within 10 to 30 days of purchase; your state's rules vary. The bill of sale is one of the documents the buyer will need to bring to the DMV, along with the signed title certificate itself.

Keep your copy of the signed bill of sale in your records permanently. Even after the title transfers and the buyer's name appears on the registration, you want proof that you sold the car on a specific date. If the buyer later gets a parking ticket, is involved in an accident, or commits a traffic violation, and the DMV has not yet processed the title transfer, you may receive a notice. The bill of sale proves you no longer owned the vehicle when the incident occurred.

Frequently Asked Questions

Can I sell a car without a bill of sale?

In most states, a bill of sale is not legally required, but you should write one anyway. Without it, if the buyer gets into an accident or commits a traffic violation before the title transfers, you may be held liable because the state's records still show you as the owner. A bill of sale is your proof that you no longer owned the car.

What if the buyer does not show up to sign the bill of sale?

Do not hand over the keys or the title until both of you have signed the bill of sale. If the buyer refuses to sign or does not show up, the sale has not been completed. You still own the car, and you are still liable for anything that happens to it. Walk away from the deal if the buyer will not sign.

Do I need to notarize a bill of sale if my state does not require it?

No, but it does not hurt. Notarization adds a layer of proof that both signatures are genuine, which can be useful if there is ever a dispute. If your state does not require it and you choose to get it notarized anyway, the cost is low and the protection is real.

What if I sold the car to a family member or friend?

Write a bill of sale anyway, even for a family member. Use the actual sale price, even if you gave a discount or sold it for less than market value. A bill of sale is not about the amount paid — it is about documenting that the ownership changed hands. It protects both of you if questions come up later.

Can I use a bill of sale template from the internet instead of my state's form?

Yes, as long as the template includes all the required fields for your state. Your state's DMV website usually has an official template, which is the safest choice. If you use a generic template, make sure it includes the VIN, sale price, date, and signatures of both parties. Avoid templates that ask for unnecessary personal information like Social Security numbers.