A bill of sale is a written record that you sold a vehicle and the buyer received it

A bill of sale is a document that proves ownership changed hands. It shows the seller transferred the vehicle to the buyer, lists what was sold, when, for how much, and in what condition. Most states do not require one by law, but it protects both of you: the seller has proof they no longer own the car (so they are not liable if the buyer gets a ticket or causes an accident), and the buyer has proof of purchase if there is a dispute later.

You can write one yourself on plain paper, use a template from your state's DMV website, or buy a pre-printed form from an office supply store. The exact format does not matter as long as it contains the information below and both parties sign it. Some states have a specific form they recommend, but even those accept a handwritten version if it has all the required details.

Key Takeaways

  • A bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
  • You do not need a notary or witness for a bill of sale to be legally valid in most states, though some states recommend it for extra protection.
  • The seller should keep a copy for their records to prove they no longer own the vehicle, and the buyer should keep a copy to prove ownership until the title is transferred.
  • A bill of sale is separate from the title and does not transfer ownership by itself — the buyer must still register the vehicle with the state to become the legal owner.

What information must go on the bill of sale

Start with the basics about the vehicle: the year, make, model, color, and most importantly the VIN (vehicle identification number). The VIN is a 17-character code on the dashboard, door frame, or title. Include the odometer reading at the time of sale, the condition of the vehicle (for example, "as-is" or "good working condition"), and any known damage or mechanical issues.

Next, write the sale details: the date of the sale, the sale price in dollars, and how the buyer paid (cash, check, financing, trade-in, or a combination). If the buyer is financing the purchase through a bank or dealer, note that. Include the full legal names, addresses, and phone numbers of both the seller and buyer. Some people also add their driver's license numbers for extra verification.

At the bottom, both the seller and buyer must sign and print their names. Write the date next to the signatures. If there are multiple sellers or buyers, all of them should sign. Some states recommend having a notary public witness the signatures, though it is not required in most places — check your state's DMV website to see if they suggest it.

How to fill out a sample bill of sale

If you are using a template, the blanks will guide you through the information above. If you are writing one from scratch, here is the order that works best: start with a title line that says "Bill of Sale" or "Vehicle Bill of Sale." Then write the date at the top. Below that, write "Seller Information" and fill in the seller's name, address, and phone number. Do the same for "Buyer Information."

In the middle section, describe the vehicle: "The seller hereby sells to the buyer the following vehicle: [year, make, model, color, VIN, odometer reading]." Then state the condition and any known issues. Write the sale price and payment method: "The buyer agrees to pay the seller $[amount] in [cash/check/other] for this vehicle."

End with a line like "The seller certifies that the vehicle is free of liens and that the seller has the right to sell it" (unless there is a lien, in which case note that). Then add signature lines for both parties with space for printed names and the date. You do not need fancy language — plain English is fine and is actually clearer.

When to use a bill of sale and when it is not enough

Use a bill of sale whenever you sell a vehicle to someone else, whether it is a private sale or a trade-in. It is especially important in private sales because there is no dealer paperwork to document the transaction. Even if your state does not require one, having it protects you both.

A bill of sale is not the same as a title transfer. The title is the legal document that proves ownership, and it must be transferred separately through your state's DMV or equivalent agency. The buyer cannot register the vehicle or legally drive it without the title in their name. The bill of sale is proof of the sale itself, but the title transfer is what makes the buyer the legal owner. Both documents are needed.

If the vehicle has a lien (meaning a bank or lender still owns part of it), the bill of sale should note that. The lien must be paid off and removed from the title before the buyer can own it free and clear. If you are selling a vehicle with a lien, tell the buyer upfront and explain how the payoff will happen.

Where to get a bill of sale template

Your state's DMV website usually has a free template you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "sales agreement" or "vehicle sales form" instead. If your state does not have an official form, you can use a generic template from office supply websites like Staples or Office Depot, or read one free from legal document sites.

You can also buy a pre-printed bill of sale pad at any office supply store for a few dollars. These pads come with multiple copies so you can keep one and give one to the buyer. The advantage is that they are already formatted and have all the standard blanks filled in.

No matter which template you use, make sure it includes all the information listed above. If something is missing, add it by hand before signing. Both the seller and buyer should receive a signed copy for their records.

What happens after you sign the bill of sale

Once both parties sign, the bill of sale is complete. The seller should keep a copy in a safe place — it proves they sold the vehicle and are no longer responsible for it. The buyer should also keep a copy as proof of purchase.

The buyer then takes the bill of sale, the title, and any other required documents to the DMV to register the vehicle in their name. The exact documents needed vary by state, so the buyer should check the DMV website or call ahead. Registration usually takes a few days to a few weeks, and the buyer receives a new title in their name.

Until the title is transferred, the seller is still listed as the owner on state records. This is why it is important for the seller to keep the bill of sale — if the buyer gets a ticket or is in an accident before registering the vehicle, the bill of sale proves the seller no longer owns it and should not be held liable.

Common mistakes to avoid on a bill of sale

The most common mistake is leaving out the VIN or writing it incorrectly. Double-check the VIN against the title or the vehicle itself before you write it down. Another mistake is not signing and dating the document — without signatures, it has no legal weight.

Do not leave the sale price blank or write "as agreed" instead of a number. If there is ever a dispute, the price needs to be clear. If the sale is a gift or trade-in, write that in the price field or add a note explaining the arrangement.

Do not assume the buyer will handle the title transfer on their own. Make it clear in writing that the buyer is responsible for registering the vehicle with the DMV. Some sellers also add a line saying the buyer has a certain number of days (often 10 to 30) to complete the registration, though this is not legally required in most states.

Frequently Asked Questions

Do I need a notary to sign a bill of sale?

Most states do not require a notary for a bill of sale to be valid. However, some states recommend it for extra protection, and a notarized bill of sale may carry more weight if there is a dispute later. Check your state's DMV website to see if they suggest it. If you want one notarized, take the signed document to a bank, library, or notary public — the cost is usually $5 to $15.

What if I lost the bill of sale after I sold the car?

If you are the seller and lost your copy, you can contact the buyer and ask for another signed copy. If the buyer will not provide one, you can file a report with your DMV stating that you sold the vehicle on a certain date to a certain person. Keep any text messages, emails, or payment records that prove the sale. This protects you if the vehicle is later involved in an accident or crime.

Can I use a bill of sale if the vehicle still has a loan on it?

Yes, but you must note on the bill of sale that the vehicle has a lien. The lender must be paid off before the title can be transferred to the buyer. Usually the seller pays off the loan at closing, or the buyer's lender pays it off as part of the financing. Make sure both parties understand who is responsible for paying the lien before you sign.

Is a bill of sale the same as a title?

No. A bill of sale proves the sale happened and documents the terms. A title is the legal ownership document issued by the state. The buyer needs both: the bill of sale as proof of purchase, and the title transferred into their name to be the legal owner. The buyer cannot drive or register the vehicle without the title.

What should I do if the buyer never registers the vehicle?

If you are the seller and the buyer does not register the vehicle, you remain the owner on state records. This means you could be liable for tickets, tolls, or accidents involving that vehicle. Contact the buyer and ask them to complete the registration. If they will not, contact your DMV and explain that you sold the vehicle — they may be able to remove you from liability or flag the title as sold.