A motor vehicle bill of sale is a written record that you and the seller sign to prove that ownership of a car, truck, or motorcycle has changed hands
It is not the same as a title — the title is the legal document that proves ownership and is issued by your state's motor vehicle agency. A bill of sale is a private agreement between you and the seller that documents the transaction: who owned the vehicle, who owns it now, what was paid, and when the sale happened. You need one because it protects both of you if questions arise later about who sold the car or whether the sale actually took place.
In most states, a bill of sale is not required by law to transfer a title, but it is strongly recommended. Some states do require it — Maryland, for example, requires a bill of sale before the Motor Vehicle Administration will process a title transfer. Even where it is not legally required, your lender, insurance company, or the person buying from you later may ask to see it. Without one, you have no written proof of the transaction.
Key Takeaways
- A bill of sale documents the sale of a vehicle between a private seller and buyer and is signed by both parties.
- Some states require a bill of sale before the motor vehicle agency will transfer the title; others do not, but having one protects you either way.
- The bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the names and signatures of both the seller and buyer.
- You can use a form provided by your state's motor vehicle agency, a generic template, or create your own as long as it contains all required information.
- Keep the original signed bill of sale with your vehicle records; you may need it to register the car, transfer the title, or resolve disputes later.
What information must be on a bill of sale
A bill of sale should include the vehicle identification number (VIN), the year, make, and model of the vehicle, the odometer reading at the time of sale, and the sale price. Both the seller and the buyer must sign and print their names. The date of the sale should be clearly written. Some states also require the seller's signature to be notarized — meaning a notary public must witness the signature and stamp the document.
You should also include the names and addresses of both parties, the condition of the vehicle (whether it is sold as-is, for example), and any warranties or promises the seller made. If the vehicle has a lien on it — meaning a bank or lender still owns part of it — that should be noted. If the seller is still paying off a loan, the buyer needs to know before signing, because the lender has a claim on the car until the loan is paid off.
Where to find a bill of sale form
Your state's motor vehicle agency website usually offers a free bill of sale form. Search for "[your state] motor vehicle bill of sale" or "[your state] DMV bill of sale." For example, the Virginia Department of Motor Vehicles provides form VSA 42, and the California Department of Motor Vehicles provides a bill of sale template on its website. If your state does not provide one, you can use a generic template from a legal document website or create your own, as long as it includes all the required information.
Some states have specific forms they prefer or require. Before you use a template from another source, check your state agency's website to see if there is an official form. Using the official form reduces the chance that the motor vehicle agency will reject it when you submit your title transfer paperwork.
When the seller still owes money on the vehicle
If the seller has an outstanding loan on the car, the lender — usually a bank or credit union — holds a lien on the title. This means the lender has a legal claim on the vehicle until the loan is paid off. The buyer should never hand over money until the lien is released. The seller must pay off the loan with the sale proceeds, and the lender must sign a lien release document.
The bill of sale should note that the vehicle is subject to a lien and should state who the lienholder is. Some buyers and sellers arrange for the sale to close at the lender's office so the payoff happens when ready and the lien release is signed on the spot. If the sale does not happen at the lender's office, the seller should provide proof that the loan has been paid off and the lien released before the buyer takes possession of the car. Without proof, the buyer could inherit the debt.
How a bill of sale protects the seller
Once the buyer signs the bill of sale, the seller has written proof that they no longer own the vehicle. This is important because if the car is involved in an accident, a traffic violation, or a crime after the sale, the seller could be held responsible if they cannot prove they sold it. A signed bill of sale shows that ownership transferred on a specific date.
The seller should also keep a copy of the bill of sale until the buyer has registered the vehicle in their own name and the title has been transferred. Some sellers take a photo of the signed bill of sale and the buyer's driver's license for extra protection. The seller should never sign over the title until the bill of sale is signed and the money has been received.
How a bill of sale protects the buyer
The buyer needs the bill of sale to register the vehicle and transfer the title into their name. Without it, the motor vehicle agency may not process the title transfer. The bill of sale also documents the sale price, which the buyer may need for insurance purposes or if they later sell the car. If a dispute arises — for example, if the seller claims the buyer still owes money or if the buyer discovers the odometer was rolled back — the bill of sale is evidence of what was agreed to.
The buyer should also check that the VIN on the bill of sale matches the VIN on the vehicle itself and on any inspection or service records. Mismatched VINs can indicate title problems or fraud. The buyer should not sign the bill of sale until they have inspected the vehicle and confirmed that it matches the description on the form.
Notarization requirements by state
Some states require the bill of sale to be notarized; others do not. A notarized bill of sale means a notary public has witnessed both signatures and stamped the document with their official seal. This adds a layer of verification but is not always necessary. Check your state's motor vehicle agency website to see whether notarization is required in your state.
If notarization is required, you can have the document notarized at a bank, a notary's office, a UPS store, or sometimes a library. The cost is usually between five and fifteen dollars. Both the seller and the buyer must be present with a valid photo ID. If notarization is not required but you want extra protection, you can still have it done — it does not hurt and may be useful later if questions arise.
Frequently Asked Questions
Do I need a bill of sale if I am buying a car from a dealer?
No. Dealers provide their own sales paperwork, which serves the same purpose as a bill of sale. The dealer's paperwork documents the sale and is submitted to the motor vehicle agency along with the title transfer. You do not need a separate bill of sale when buying from a licensed dealer.
What if the seller will not sign the bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the vehicle, the title may be unclear, or they are trying to hide something. A legitimate seller has no reason to refuse to sign a straightforward document that protects both parties.
Can I use a bill of sale from another state?
You can use a generic bill of sale template, but it is better to use the form provided by your state's motor vehicle agency. Your state's form is designed to meet your state's requirements and is more likely to be accepted without questions when you submit your title transfer paperwork.
What should I do with the bill of sale after the sale is complete?
Keep the original signed bill of sale with your vehicle records and registration. Store it in a safe place — a file, a safe deposit box, or a digital scan. You may need it if you sell the car later, if an insurance claim arises, or if a dispute occurs about the sale.
Is a bill of sale the same as a title?
No. A bill of sale is a record of the transaction between buyer and seller. A title is the legal document issued by your state that proves ownership. You need both: the bill of sale to document the sale, and the title transfer to make the ownership change official with the motor vehicle agency.