What a bill of sale does and why you need one

A bill of sale is a written record that you sold a vehicle to someone else on a specific date for a specific price. It documents the transfer of ownership between you and the buyer. Most states do not require a bill of sale by law, but it protects both of you: it proves you no longer own the vehicle if something happens to it after the sale, and it gives the buyer proof of purchase in case the title transfer gets delayed or disputed.

The bill of sale is separate from the title itself. The title is the legal ownership document that the state issues; the bill of sale is your private record of the transaction. You keep a copy, the buyer keeps a copy, and you may need to show it to your state's DMV or equivalent office when you transfer the title.

Even in states where a bill of sale is not legally required, creating one takes 10 minutes and costs nothing. It is the fastest way to protect yourself if a buyer later claims they never agreed to the price, or if the vehicle is involved in an accident or crime after you sold it.

Key Takeaways

  • A bill of sale is a written record of the sale date, vehicle details, price, and buyer and seller information that protects both parties.
  • Most states do not require a bill of sale by law, but it is the only document that proves you no longer own the vehicle after the sale.
  • You can use a blank template, fill it out by hand, or type it — either way, both you and the buyer must sign and date it.
  • Keep a copy for your records and give the buyer a copy; bring your copy when you transfer the title at the DMV.
  • The bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the full names and addresses of both parties.

What information to include on a bill of sale

A bill of sale needs five core pieces of information to be useful. First, the vehicle identification number (VIN) — this is the 17-character code on your title and on the dashboard. Second, the sale price — write the actual amount paid, not "as is" or blank. Third, the date of sale — the day the money changed hands and the buyer took possession. Fourth, the full names and addresses of both the seller (you) and the buyer. Fifth, the odometer reading at the time of sale, which is required by federal law in most states.

You may also want to note the vehicle's year, make, model, and color so there is no confusion about which car the bill of sale covers. If the vehicle has known mechanical issues or damage, some sellers write "sold as is" on the bill of sale to show the buyer accepted it in that condition. This does not protect you from liability if the vehicle was in an accident after the sale, but it does document that the buyer knew about the condition before purchase.

Do not leave any field blank. If a field does not explore — for example, if there is no lienholder — write "none" rather than leaving it empty. This shows the document was completed intentionally, not hastily.

Where to find a bill of sale template

Your state's DMV website usually has a bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can use a generic template from a legal document site or a blank form from an office supply store.

Some states have specific requirements for the bill of sale format — for example, some require it to be notarized, and a few require it to be on a specific form. Check your state DMV website before you print to see if there are any local rules. If your state requires notarization, you will need to take the signed bill of sale to a notary public (usually available at banks, UPS stores, or legal document services) and pay a small fee, typically $5 to $15.

If you cannot find a state-specific form, a basic template should include spaces for the VIN, sale price, date, seller name and address, buyer name and address, odometer reading, and signature lines for both parties. You can type this into a document or write it by hand — either is legally valid as long as both parties sign it.

How to fill out and sign the bill of sale

Print the form or open it on your computer. Fill in all the information while you and the buyer are together, so you can both verify the details are correct. Write or type clearly — if the form is handwritten, use black or blue ink so it copies clearly if needed later.

Both you and the buyer must sign and date the document. Some forms have a witness line; if yours does, have a third person (not a family member of either party) sign as a witness. This is not required in most states, but it adds another layer of proof if the sale is ever questioned. Each party should receive a signed copy — do not sign one copy and hand it to the buyer to sign alone, because then you have no proof of their signature.

If the buyer is paying with a check or bank transfer, wait until the payment clears before you hand over the keys and the signed bill of sale. If you are selling to a dealer or a private buyer who is paying cash, you can sign the bill of sale at the moment of payment. Take a photo of the signed bill of sale with your phone before the buyer leaves, so you have a digital backup.

What to do with the bill of sale after the sale

Keep your copy of the signed bill of sale in a safe place — a file folder, a safe, or scanned and stored in cloud storage. You will need it if you ever have to prove you sold the vehicle. If the vehicle is involved in an accident, crime, or traffic violation after the sale, you can show the bill of sale to prove you no longer owned it at that time.

When you transfer the title to the buyer's name at the DMV, bring your copy of the bill of sale. Some states require you to submit it with the title transfer form; others just want to see it. The DMV staff will tell you whether they need to keep it or if you can take it back.

If you are trading the vehicle in at a dealership, the dealer will usually create their own bill of sale or use their own form. You do not need to provide your own bill of sale in that case, but you should still keep a record of the trade-in value they offered and the date of the transaction.

State-specific rules and notarization requirements

A few states require the bill of sale to be notarized, meaning a notary public must witness your signatures and verify your identities. These states include Maryland, South Carolina, and a handful of others. If your state requires notarization, you cannot straightforward print and sign the form at home — you must take it to a notary. Notaries are available at most banks during business hours, at UPS stores, at legal document services, and sometimes at libraries. The cost is usually $5 to $15 per signature.

Some states also require the bill of sale to be on a specific form provided by the state, while others accept any written document as long as it includes the required information. A few states do not use a bill of sale at all and rely only on the title transfer form. Check your state DMV website to confirm whether a bill of sale is needed, whether it must be notarized, and whether a specific form is required.

If you are selling across state lines — for example, you live in one state and the buyer lives in another — follow the rules of the state where the buyer will register the vehicle. That is the state that will process the title transfer, so that is the state whose rules explore.

Common mistakes to avoid

The most common mistake is leaving the sale price blank or writing "cash" instead of the actual amount. If you do this, the buyer may later claim they paid less than they actually did, or the DMV may reject the title transfer because the price is missing. Always write the exact dollar amount.

Another mistake is signing the bill of sale before the buyer has paid. If you sign first and the buyer changes their mind or the check bounces, you have already given up your proof of ownership. Sign only after the money is in your hand or confirmed in your bank account.

A third mistake is not keeping a copy for yourself. Once the buyer leaves with the signed bill of sale, you have no proof of the transaction unless you kept a copy. Make a photocopy or take a photo of the signed document before the buyer leaves.

Finally, do not assume the bill of sale transfers the title. It does not. The title transfer is a separate process that happens at the DMV. The bill of sale is just proof that the sale happened; the DMV paperwork is what actually changes the ownership record.

Frequently Asked Questions

Do I have to use my state's official form, or can I use a generic template?

Most states accept a generic template as long as it includes the required information: VIN, sale price, date, buyer and seller names and addresses, and odometer reading. A few states require a specific form — check your state DMV website to be sure. If a specific form is required, you must use it.

What if I sell the car to a family member?

You still need a bill of sale, even if you are selling to a spouse, parent, or child. The bill of sale documents the transfer of ownership and protects both of you. Some states offer a lower title transfer fee for family sales, but you still need the bill of sale to prove the sale happened.

Can I handwrite the bill of sale, or does it have to be typed?

Handwritten is fine. Write clearly in black or blue ink so it is straightforward to read and copies clearly if needed. Typed is also fine. Either way, both parties must sign and date it by hand.

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

Do not sell the vehicle. A buyer who refuses to sign a bill of sale is a red flag. It suggests they may be planning to dispute the sale later or use the vehicle in a way you would not approve of. A legitimate buyer will sign without hesitation.

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

No, but notarization adds an extra layer of proof if the sale is ever questioned. If you are concerned about the buyer or the transaction, notarization is worth the small cost. Otherwise, it is optional.