What goes in a bill of sale and why you need one
A bill of sale is a written record that you sold a car to someone else. It names the seller, the buyer, the vehicle, the sale price, and the date. Both the seller and buyer sign it. A bill of sale protects both of you: it proves the buyer paid for the car, and it proves the seller no longer owns it.
You need a bill of sale before the buyer can register the car in their name at your state's motor vehicle department. The buyer will submit it along with the title. Some states require a specific form; others accept any written document that has the right information. Either way, the bill of sale becomes part of the vehicle's record.
A bill of sale is not the same as a title. The title is the legal ownership document issued by your state. The bill of sale is the transaction record — proof that ownership changed hands and at what price.
Key Takeaways
- Your state motor vehicle department either provides a required bill of sale form or accepts a written document you create, so check your state's website first.
- 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 signatures from both parties.
- The buyer needs the bill of sale to register the car in their name, so keep a copy for your records and give the original to the buyer.
- Some states require the bill of sale to be notarized; check your state's rules before you sign.
Check your state's bill of sale requirements first
Before you write anything, visit your state's motor vehicle department website and search for "bill of sale." Some states provide an official form you must use. Others list what information must be on the document but let you write it yourself. A few states do not require a bill of sale at all, though having one is still a good idea.
While you are on the site, check whether your state requires the bill of sale to be notarized. Notarization means a notary public watches you sign and verifies your identity. If your state requires it, you will need to visit a notary before the buyer takes the car. If it does not require it, notarization is optional but adds an extra layer of proof.
Write down the exact requirements for your state. This takes five minutes and prevents mistakes that could delay the buyer's registration.
Information that must be on every bill of sale
Whether you use your state's form or write your own, include all of this information:
- Seller's full name and address — the person who owns the car now
- Buyer's full name and address — the person buying the car
- Vehicle Identification Number (VIN) — found on the title, registration, or dashboard
- Year, make, and model of the car
- Sale price — the amount the buyer is paying, written as a number and spelled out (for example: $5,000 / Five Thousand Dollars)
- Date of sale — the day the money changes hands and ownership transfers
- Seller's signature — signed in front of a notary if your state requires it
- Buyer's signature — signed in front of a notary if your state requires it
Some states also ask for the odometer reading, the condition of the car (as-is or with warranty), or whether there are any liens on the vehicle. Check your state's form or requirements to see if any of these explore.
How to write a bill of sale if your state does not provide a form
If your state does not have an official form, you can write the bill of sale yourself on plain paper or use a template from your state's motor vehicle website. Start with a heading at the top: "Bill of Sale" or "Vehicle Bill of Sale."
Write out the information in paragraph form or as a numbered list. Include all the required information listed above. Here is an example structure:
BILL OF SALE
This bill of sale certifies that [Seller Name], residing at [Seller Address], sold to [Buyer Name], residing at [Buyer Address], the following vehicle:
Year: [Year] Make: [Make] Model: [Model] VIN: [VIN] Odometer Reading: [Miles] (if required in your state)
Sale Price: $[Amount] ([Amount spelled out])
Date of Sale: [Date]
Seller Signature: _________________ Date: _______ Buyer Signature: _________________ Date: _______
Keep the language straightforward and straightforward. You do not need legal jargon. The motor vehicle department just needs to see that both parties agreed to the sale, what was sold, and for how much.
Signing and notarizing the bill of sale
Both you and the buyer must sign the bill of sale. Sign in blue or black ink — not pencil. If your state requires notarization, you must both sign in front of a notary public. The notary will watch you sign, check your ID, and then sign and stamp the document themselves.
You can find a notary at a bank, post office, UPS store, or through an online search for "notary public near me." Notarization usually costs between $5 and $25 per signature. If your state does not require it, you can skip this step, but some people choose to notarize anyway for extra protection.
Do not sign the bill of sale before the buyer gives you the money. The signature means the sale is complete. Once you both sign, the buyer owns the car and you no longer do.
What to do with the bill of sale after you sign it
Make two copies of the signed bill of sale — one for you and one for the buyer. The buyer needs the original (or a certified copy if it was notarized) to submit to the motor vehicle department when they register the car. Keep your copy for your records in case there are questions later about the sale.
You should also sign the title and give it to the buyer. The title and the bill of sale work together: the bill of sale proves the transaction happened, and the title transfers ownership. The buyer cannot register the car without both documents.
If you financed the car through a loan, check whether the lender has to sign the title. Some lenders do; some do not. Contact your lender before the sale to find out what they need from you.
Common mistakes to avoid
Do not leave any blanks on the bill of sale. If a field does not explore, write "N/A" or "Not applicable." An incomplete document can delay the buyer's registration.
Do not sign the bill of sale before you receive payment. Once you sign, the sale is legally complete, and you have no claim to the car anymore.
Do not forget to sign the title as well as the bill of sale. The buyer needs both to register the vehicle. If you only sign the bill of sale, the title still shows you as the owner.
Do not use pencil or faint ink. Use blue or black pen so the signature is clear and permanent.
Do not assume your state does not require a bill of sale without checking. Even if it is not required, having one protects both you and the buyer.
Frequently Asked Questions
Can I write a bill of sale on any piece of paper?
Yes, if your state does not provide an official form. Plain paper is fine as long as it includes all required information and both parties sign it. Some states prefer a specific format, so check your motor vehicle department website first.
What if the buyer and I sign the bill of sale but the buyer never registers the car?
You are still protected because you have a signed bill of sale showing you sold the car. If the car is involved in an accident or crime, you can show the document to prove you no longer own it. Keep your copy forever.
Do I need a bill of sale if I am selling the car to a family member?
Yes. A bill of sale protects both of you, even in a family sale. Your state's motor vehicle department will require it when the family member registers the car in their name.
What if I do not know the exact sale price yet?
Do not sign the bill of sale until the price is final. The bill of sale documents the actual transaction, so it must show the real amount paid. If you sign before agreeing on a price, the document is incomplete.
Can I use a bill of sale template from the internet instead of my state's form?
Only if your state does not provide an official form. If your state has a required form, you must use it. If it does not, a template is fine as long as it includes all the information your state requires.