What a New Jersey bill of sale is and why you need one
A bill of sale is a written record that you sold a vehicle to someone else or bought one from them. In New Jersey, it serves as proof of the transaction — who owned the car, who owns it now, what was paid, and when the transfer happened. The state does not require a bill of sale to register a vehicle, but it protects both the buyer and seller by documenting the deal in writing.
If you are selling a car, a bill of sale protects you by showing you no longer own it on a specific date. If you are buying one, it proves what you paid and that the seller agreed to transfer ownership. Without one, disputes can arise about whether a sale actually occurred, what price was agreed to, or who is responsible for parking tickets, tolls, or accidents that happen after the handoff.
New Jersey does not have an official state form for a bill of sale, but the document you create must include certain information to be useful. You can write one yourself, use a template, or have an attorney draft one — all are legally valid as long as they contain the required details.
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 to be valid in New Jersey.
- New Jersey does not provide an official bill of sale form, so you can create one yourself using a template or have an attorney prepare it.
- Both the buyer and seller should keep a signed copy for their records, even though the bill of sale is not filed with the state.
- The bill of sale does not transfer the title itself — you must still complete the title transfer through the Motor Vehicle Commission using Form BA-49 or BA-50.
- A bill of sale can protect you from liability for accidents, parking violations, or tolls that occur after you sell the vehicle, as long as you report the sale to your insurance company.
What information must be included in a New Jersey bill of sale
Your bill of sale should contain the vehicle's complete identification number (VIN), which appears on the dashboard and on the title document. Include the year, make, model, and color of the vehicle. Add the odometer reading at the time of sale — this is important for documenting the condition of the car and preventing odometer fraud.
Write the full name, address, and phone number of both the seller and the buyer. Include the sale price in dollars and cents. State the date the sale occurred. Both parties must sign and date the document in front of each other or, in some cases, before a notary public (though New Jersey does not require notarization for a bill of sale to be valid).
You may also want to note the condition of the vehicle (for example, "sold as-is" or "with warranty"), whether any liens or loans are still attached to the title, and whether the buyer is responsible for any outstanding tolls or parking violations. These details are not legally required but can prevent misunderstandings later.
How to create a bill of sale document
Start with a straightforward template or create a document from scratch using a word processor. At the top, write "Bill of Sale" or "Vehicle Bill of Sale." Below that, write out the transaction details in clear language: "I, [Seller Name], hereby sell to [Buyer Name] the vehicle described below for the sum of $[amount]."
List the vehicle information: VIN, year, make, model, color, and odometer reading. Add the date of sale. Leave space for both the seller and buyer to print their names and sign. You do not need fancy legal language — straightforward, factual writing is sufficient and often clearer.
Print two copies: one for the seller and one for the buyer. Both parties should sign both copies so each has a fully signed original. If either party is uncomfortable with the transaction or wants extra protection, you can have the signatures notarized at a bank or notary office, though this is optional in New Jersey.
How a bill of sale relates to the title transfer process
The bill of sale and the title are two separate documents that serve different purposes. The bill of sale is your proof that a sale happened; the title is the state's official record of who owns the vehicle. Creating a bill of sale does not automatically transfer the title — that requires a separate step with the New Jersey Motor Vehicle Commission.
The buyer must submit the signed title (also called the certificate of ownership) along with Form BA-49 (process for New Jersey Certificate of Ownership) or Form BA-50 (if the vehicle is being transferred between family members) to the Motor Vehicle Commission. The seller should also notify their insurance company that they no longer own the vehicle, even if the buyer has not yet registered it in their name.
Keep your bill of sale even after the title transfer is complete. It documents when you stopped being responsible for the vehicle and can protect you if problems arise later — for example, if the car is involved in an accident or receives a parking ticket after you sold it.
When to use a bill of sale and common situations
Use a bill of sale whenever you sell a vehicle to another person, whether to a friend, family member, or stranger. You should also create one if you are buying a used car from a private seller (not a dealership). Dealerships typically provide their own paperwork, but a bill of sale from a private seller is your protection.
If you are selling a vehicle with an outstanding loan or lien, the bill of sale should note this. The buyer needs to know they cannot take full ownership until the lien is paid off. If you are selling "as-is" without any warranty, state that clearly in the bill of sale so the buyer cannot later claim you promised repairs or that the car was in better condition.
If you are donating a vehicle to a charity or nonprofit, you may still want a bill of sale (or a donation receipt from the organization) to document the transfer for tax purposes. Check with the organization about what paperwork they require.
Protecting yourself as a seller with a bill of sale
A signed bill of sale is your best defense against liability after you sell a car. Once the buyer signs, you have proof that ownership transferred on that date. If the vehicle is involved in an accident, receives a parking ticket, or racks up tolls after the sale, you can show the bill of sale to prove you were no longer the owner.
Report the sale to your insurance company when ready, even if the buyer has not yet registered the vehicle in their name. This removes you from the policy and ensures you are not liable for damage or injuries involving the car after the sale date. Keep a copy of the bill of sale with your insurance records.
If the buyer does not transfer the title within a reasonable time, follow up with them. An unregistered vehicle can still create problems for the seller — for example, if the car is abandoned or used in a crime, authorities may track it back to you. A bill of sale alone does not fully protect you; the title transfer must also be completed.
What to do if you lose your bill of sale or need a copy later
If you signed a bill of sale but did not keep a copy, contact the other party and ask for one. If you cannot reach them, you may be able to recreate the document if you remember the key details: the VIN, sale price, and date. Write a new bill of sale with the information you recall and note that it is a reconstruction of the original.
The Motor Vehicle Commission does not keep copies of bills of sale — they are private documents between buyer and seller. If you need proof of a sale for insurance, legal, or tax purposes, your own signed copy is the only official record. This is why keeping a copy in a safe place is important.
If you are involved in a dispute about a vehicle sale and cannot find the original bill of sale, other documents may help: bank records showing the payment, text messages or emails discussing the sale, or witness statements from people present at the transaction. However, a signed bill of sale is the strongest evidence.
Frequently Asked Questions
Does New Jersey require a bill of sale to register a vehicle?
No. The Motor Vehicle Commission does not require a bill of sale to process a title transfer. However, you should create one anyway because it protects both buyer and seller by documenting the transaction in writing. Many private sales include a bill of sale even though it is not mandatory.
Can I use a bill of sale from online or a template?
Yes. New Jersey does not have an official state form, so any written bill of sale that includes the required information — VIN, sale price, date, and signatures of both parties — is valid. Templates from reputable sources work fine as long as you fill in all the details accurately.
Do both the buyer and seller need to sign the bill of sale?
Yes. Both parties should sign and date the document. Each should keep a fully signed copy for their records. Signatures prove that both parties agreed to the sale and the terms. If only one person signs, it is not a complete record of the transaction.
What happens if I sell a car but the buyer never registers it in their name?
You remain at risk for liability until the title is officially transferred. Report the sale to your insurance company when ready and keep your signed bill of sale. If the car is involved in an accident or receives violations after the sale date, you can use the bill of sale to prove you no longer owned it. However, follow up with the buyer to may support they complete the title transfer through the Motor Vehicle Commission.
Is a notarized bill of sale better than an unnotarized one?
Notarization adds an extra layer of verification — a notary public confirms that both parties signed in front of them — but it is not required in New Jersey. An unnotarized bill of sale signed by both parties is legally valid. Notarization is helpful if you expect the transaction to be disputed or if you want extra protection, but it is optional.