What a bill of sale does and when you need one in Alabama
A bill of sale is a written record that you sold a vehicle to someone else. It documents the sale price, the vehicle details, the date, and the signatures of both the seller and buyer. In Alabama, a bill of sale is not required by law to transfer ownership — the title document itself is what transfers ownership — but you should create one anyway because it protects both you and the buyer.
If you are selling a vehicle, a bill of sale gives you proof that 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 the sale. Without it, disputes can arise about whether a sale actually happened, what price was agreed to, or when ownership changed hands. The bill of sale becomes especially important if the vehicle is later involved in an accident, gets a parking ticket, or is used in a crime — you need written proof you are no longer responsible.
Alabama does not have an official state bill of sale form, but the Alabama Law Enforcement Agency (ALEA) provides a template on its website that follows state requirements. You can also use a generic bill of sale template as long as it includes the required information.
Key Takeaways
- A bill of sale protects both buyer and seller by documenting the sale price, vehicle details, and the date ownership changed hands.
- Alabama does not legally require a bill of sale, but creating one is strongly recommended to avoid disputes later.
- The bill of sale must include the vehicle identification number (VIN), make, model, year, sale price, odometer reading, and signatures of both parties.
- You should keep a copy of the signed bill of sale for your records even after the title transfer is complete.
What information must go on an Alabama bill of sale
The bill of sale should include the vehicle's VIN (vehicle identification number), which is the 17-character code that uniquely identifies the car. You will find it on the dashboard on the driver's side, on the title document, or on insurance paperwork. Include the vehicle's make, model, year, and color so there is no confusion about which vehicle is being sold.
Write down the sale price — the actual amount of money changing hands. This is important because it becomes part of the public record and affects how the buyer calculates sales tax owed to Alabama. Include the odometer reading at the time of sale. Alabama law requires this on the title transfer form, and the bill of sale should match it.
Both the seller and buyer must sign and print their names on the bill of sale. Include the date of the sale. You may also add the seller's address and the buyer's address, though this is not required. Some people include the vehicle's condition (for example, "sold as-is") to make clear that the buyer is accepting the vehicle in its current state.
How to fill out the ALEA bill of sale template
The Alabama Law Enforcement Agency provides a bill of sale form on its website under the vehicle title and registration section. read it, print it, and fill it out by hand or type the information directly into the PDF before printing.
Start with the seller's name and address at the top. Fill in the buyer's name and address. Enter the date of sale. In the vehicle information section, write the VIN, year, make, model, and color. Write the sale price in the price field — write out the dollar amount in words and numbers (for example, "One Thousand Five Hundred Dollars ($1,500.00").
Enter the odometer reading. If the vehicle has over 100,000 miles, check the box that says so. Sign and print your name as the seller. Have the buyer sign and print their name as well. Both signatures must be original — photocopied or digital signatures may not be accepted by ALEA or the buyer's lender.
Signing and witnessing the bill of sale
Alabama does not require the bill of sale to be notarized or witnessed by a third party. However, having a notary public witness both signatures adds a layer of protection because it creates an official record that both parties signed the document on that date. This costs between $5 and $15 depending on where you go.
If you do not use a notary, make sure both the seller and buyer sign the document in front of each other. Do not sign it separately or have someone else sign on your behalf. Each party should keep a copy of the signed bill of sale for their records.
What happens after you sign the bill of sale
Signing the bill of sale does not transfer the title. The title transfer happens separately through ALEA. The seller must sign the back of the title document and provide it to the buyer. The buyer then takes the signed title and the bill of sale to an ALEA office or an authorized tag agent to register the vehicle in their name.
As the seller, keep your copy of the signed bill of sale in a safe place. If questions arise later about when you sold the vehicle or what price was agreed to, you have written proof. If the vehicle is involved in an accident or legal issue after the sale, the bill of sale shows you are no longer the owner as of the sale date.
The buyer should also keep their copy. If they ever sell the vehicle, they may need to show proof of their purchase price for tax purposes or to settle a dispute with a future buyer.
Using a generic bill of sale template instead of the ALEA form
You do not have to use the ALEA template. A generic bill of sale from an online source or a legal document service works as long as it includes all the required information: VIN, vehicle details, sale price, odometer reading, date, and signatures of both parties. Some people use templates from LegalZoom, Rocket Lawyer, or even a straightforward document they create themselves in Word or Google Docs.
The advantage of the ALEA template is that it is designed specifically for Alabama and is recognized by ALEA staff and tag agents. A generic template may require you to fill in more blanks or may include language that does not explore to Alabama sales. If you use a generic template, double-check that it does not ask for information that is not relevant (for example, some templates ask about liens or trade-ins, which may not explore to your sale).
Common mistakes to avoid when writing a bill of sale
Do not leave the sale price blank or write "cash" without a dollar amount. ALEA and the buyer's lender need the actual price to process the title transfer and calculate sales tax. Do not use a pencil — use pen so the document cannot be altered after signing.
Do not sign the bill of sale before the buyer does, or vice versa. Both parties should be present and sign in front of each other. Do not assume the buyer will handle getting the bill of sale signed — as the seller, you should prepare it and bring it to the sale so both of you can sign it on the spot.
Do not forget to include the odometer reading. This is required by Alabama law and must match the odometer reading on the title transfer form. If the readings do not match, ALEA may delay processing the title transfer.
Frequently Asked Questions
Do I have to notarize the bill of sale in Alabama?
No, notarization is not required by Alabama law. However, having a notary public witness both signatures adds legal weight to the document and creates an official record of the signing date. It costs $5 to $15 and takes about 10 minutes.
What if I lost the bill of sale after I sold the vehicle?
If you no longer have a copy, contact the buyer and ask them to provide you with a copy of the signed bill of sale. If the buyer no longer has it either, you can request a copy of the title transfer record from ALEA, which shows the date the title was transferred to the new owner. This serves as proof you sold the vehicle on that date.
Can I sell a vehicle without a bill of sale?
Legally, yes — Alabama does not require a bill of sale to transfer ownership. The title transfer itself is what matters. However, selling without a bill of sale leaves you without written proof of the sale, the price, or the date. This can create problems if the vehicle is later involved in an accident or legal issue and someone tries to hold you responsible.
What if the buyer and I disagree on the sale price after signing?
The bill of sale is a written record of what both parties agreed to at the time of sale. If a dispute arises later, the signed bill of sale is the evidence of the agreed price. This is why it is important that both parties sign the same document and keep copies.
Do I need a bill of sale if I am trading in my vehicle at a dealership?
No. When you trade in a vehicle at a dealership, the dealership handles the title transfer as part of the sale agreement. The dealership provides the paperwork, and you sign it there. A separate bill of sale is not necessary.