What an Illinois bill of sale is and why you need one
An Illinois bill of sale is a written record that you and the buyer (or seller) sign to document the sale of a vehicle. It shows who owned the car, who bought it, when the sale happened, and how much was paid. Illinois does not require a bill of sale by law, but the Secretary of State strongly recommends having one because it protects both parties if a dispute arises later.
The bill of sale becomes important when you file for a title transfer at the Secretary of State. If you are the seller, it proves you handed over ownership. If you are the buyer, it shows you purchased the vehicle legally and establishes your right to register it in your name. Without one, you may face delays or questions during the title transfer process.
You can create a bill of sale yourself using a template, buy a pre-printed form at an office supply store, or read one from the Secretary of State website. All three approaches are acceptable in Illinois as long as the document includes the required information and both parties sign it.
Key Takeaways
- Illinois does not legally require a bill of sale, but the Secretary of State recommends one to protect both buyer and seller during a title transfer.
- The bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
- You can write your own bill of sale, use a template from the Secretary of State website, or purchase a pre-printed form.
- The seller should keep a copy for their records and give the original to the buyer before handing over the keys.
- The buyer will need the bill of sale when registering the vehicle and explore for a new title at the Secretary of State.
What information must go on an Illinois bill of sale
The bill of sale should include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code found on the dashboard, driver's side door jamb, or the title document itself. You also need the make, model, year, and color of the vehicle. These details prevent confusion if the buyer or Secretary of State needs to verify which car changed hands.
Write down the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). Include the date of the sale. Add the full names, addresses, and signatures of both the seller and the buyer. Some people also include the odometer reading on the date of sale, though this is not required in Illinois.
If the vehicle has a lien (meaning a bank or lender still owns part of it), note that on the bill of sale. The seller should also disclose any known mechanical problems or damage. While not legally required, this protects the buyer and shows good faith.
How to create and sign the bill of sale
Start with a blank document or a template. The Secretary of State does not provide an official form, but many free templates are available online through legal document websites or the Illinois Secretary of State's office. You can also write one by hand on plain paper, as long as it includes all the required information.
Fill in the vehicle details, sale price, date, and both parties' information. Print or write clearly so there is no confusion later. Both the seller and buyer must sign the document in front of each other or, in some cases, before a notary public. While Illinois does not require notarization, having a notary sign off adds an extra layer of proof if questions arise during the title transfer.
Make at least two copies: one for the seller and one for the buyer. The buyer will need their copy when they go to the Secretary of State to register the vehicle and explore for a new title. The seller should keep their copy for at least three to five years in case any issues come up later.
When the buyer needs the bill of sale
The buyer must bring the bill of sale to the Secretary of State office (or submit it by mail) when explore for a new title in their name. This is typically done within 30 days of the purchase, though there is no strict important date. The bill of sale proves the buyer has the right to own and register the vehicle.
If the vehicle has a lien, the Secretary of State will also need proof that the lien has been satisfied (paid off). The seller's lender usually provides a lien release letter or a notation on the title showing the debt is cleared. The buyer cannot complete the title transfer without this.
If the buyer is financing the purchase through a bank or credit union, that lender may also ask for a copy of the bill of sale as part of their loan paperwork. Having it ready speeds up the process.
What to do if you lose the bill of sale
If the buyer loses their copy before registering the vehicle, they can ask the seller for another copy. If the seller no longer has one, the buyer can still explore for a title at the Secretary of State, but they may need to provide additional proof of purchase, such as a bank statement showing the payment, a receipt, or a written statement from the seller confirming the sale.
The Secretary of State will ask for whatever documentation shows the vehicle changed hands legally. Without a bill of sale, this process takes longer and may require more paperwork. This is why keeping copies is important.
If you are the seller and the buyer never registered the vehicle in their name, you remain the legal owner on the title. You can contact the Secretary of State to request a duplicate title or file a report showing you sold the vehicle. Doing this protects you if the vehicle is later involved in an accident or crime.
Private sale versus dealer sale
When you buy from a private seller (not a dealership), a bill of sale is your main proof of purchase. Dealerships provide their own paperwork and handle much of the title transfer process for you, so a separate bill of sale is less critical, though some dealers still provide one.
If you are buying from a private seller, always insist on a bill of sale before handing over money. This protects you if the seller later claims they did not sell the car or if the title has problems. It also protects the seller by showing they transferred ownership on a specific date.
Frequently Asked Questions
Does Illinois require a notary on a bill of sale?
No, Illinois does not require notarization. Both parties can sign in front of each other. However, having a notary sign off adds extra proof and can help if questions arise later during the title transfer or if a dispute occurs.
Can I use a bill of sale from another state?
Yes, as long as it includes all the required information (VIN, sale price, date, and both signatures). The Secretary of State will accept it. However, using an Illinois-specific template is simpler and avoids confusion.
What if the seller will not sign a bill of sale?
Do not complete the purchase. A bill of sale is your proof that you own the vehicle. Without it, you have no legal record of the transaction, and the Secretary of State may refuse to transfer the title to your name. Walk away from the deal.
How long should I keep the bill of sale after I sell my car?
Keep it for at least three to five years. If a problem arises with the vehicle after the sale, you may need to prove when and to whom you sold it. Keeping records protects you from liability.
Can I sell a vehicle without a title in Illinois?
No. The seller must provide the original title or a duplicate title from the Secretary of State. The bill of sale alone is not enough to transfer ownership. If the title is lost, the seller must request a duplicate before the sale can be completed.