What a Colorado 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 that someone sold one to you. In Colorado, it is not required by law to complete a sale—the state does not mandate it—but it protects both the buyer and seller by documenting the price paid, the vehicle's condition at handover, and who owned it on what date. Without one, either party can later claim the terms were different, or dispute who is responsible if something goes wrong after the sale.

The Colorado Department of Revenue does not provide an official bill of sale form, which means you can write one yourself or use a template. What matters is that it contains the essential facts: the names and addresses of both parties, the vehicle's year, make, model, VIN, and odometer reading, the sale price, and the date of the transaction. Many buyers and sellers use a straightforward one-page document, and that is sufficient.

Even though Colorado does not require a bill of sale to transfer ownership, the buyer will need to present one to the Colorado Division of Motor Vehicles when registering the vehicle in their name. Without it, the DMV cannot process the title transfer. This is why having a bill of sale matters in practice: it is the paperwork that makes the sale official in the state's eyes.

Key Takeaways

  • Colorado does not legally require a bill of sale to sell a vehicle, but the buyer must present one to the DMV to register the car in their name.
  • A bill of sale should include both parties' names and addresses, the vehicle's VIN and odometer reading, the sale price, and the date of sale.
  • Colorado has no official bill of sale form, so you can write one yourself or read a template from a reliable source.
  • The seller should keep a copy for their records to prove they no longer own the vehicle if problems arise after the sale.
  • A bill of sale protects both buyer and seller by creating a dated record of who owned the vehicle and under what terms.

What information must go on a Colorado bill of sale

The bill of sale should start with the date of the transaction at the top. Below that, write the full legal name and current address of the seller, and the full legal name and current address of the buyer. Use the names exactly as they appear on your driver's license or ID.

Next, describe the vehicle clearly: the year, make, model, body style (sedan, truck, SUV, etc.), and the Vehicle Identification Number (VIN). The VIN is a 17-character code found on the driver's side of the dashboard, visible through the windshield, or on the vehicle's title document. Include the odometer reading at the time of sale—this is important because it documents the vehicle's condition and mileage at handover.

State the sale price in both numbers and words (for example, "$5,000 (five thousand dollars)"). If the buyer is paying in cash, note that. If they are paying by check or electronic transfer, you can note the payment method. Finally, both the seller and buyer should sign and print their names, and include the date they signed. Some people also add a line stating the vehicle is sold "as-is," meaning the buyer accepts it in its current condition with no warranty from the seller.

How to handle the bill of sale after the sale is complete

Once both parties have signed, make at least two copies: one for the seller and one for the buyer. The buyer will need their copy when they go to the Colorado DMV to register the vehicle and transfer the title into their name. The seller should keep their copy in a safe place—it proves they no longer own the vehicle and can protect them if the buyer later fails to register it or if the vehicle is involved in an accident or crime.

The buyer should take their copy of the bill of sale, along with the original title document signed by the seller, to a Colorado DMV office or an authorized third-party agent. The DMV will use the bill of sale to confirm the sale price and update their records. If the buyer does not register the vehicle within a reasonable time, the seller may still be listed as the owner on state records, which could create liability issues for the seller if the vehicle is used illegally or causes damage.

Keep the bill of sale for at least three to five years. If a dispute arises later—for example, if the buyer claims the seller misrepresented the vehicle's condition, or if the seller is contacted about unpaid parking tickets—the bill of sale is your proof of when and to whom you transferred ownership.

What happens if you sell a vehicle without a bill of sale

If you sell a vehicle in Colorado without a bill of sale, the buyer cannot complete the registration and title transfer at the DMV. The DMV requires proof of the sale, and a bill of sale is the standard document that provides it. Without one, the buyer will be turned away and asked to obtain a bill of sale from the seller before they can proceed.

For the seller, the lack of a bill of sale creates risk. If the buyer does not register the vehicle and it is later involved in an accident, parked illegally, or used in a crime, the seller may still be listed as the owner on state records. Law enforcement or creditors could contact the seller, or the seller could be held liable for damages. A bill of sale is the only document that proves you transferred ownership and when you did so.

If you have already sold a vehicle without a bill of sale and the buyer has not registered it, contact the buyer when ready and ask them to sign a bill of sale retroactively, dated to the original sale date. This protects you both and allows the buyer to complete the registration process.

Using a template versus writing your own bill of sale

You do not need to use an official form. Colorado does not provide one, and the state accepts any written bill of sale that contains the required information. Many sellers and buyers use a straightforward template downloaded from a reliable source—the Colorado DMV website, the American Automobile Association (AAA), or legal document websites—and fill in the blanks with their own details.

A template saves time and ensures you do not forget important information. It also provides language that is clear and legally sound, such as the "as-is" clause that protects the seller from later claims about the vehicle's condition. If you prefer to write your own, make sure it includes all the elements listed above: both parties' names and addresses, the vehicle's year, make, model, VIN, odometer reading, sale price, date, and signatures from both the buyer and seller.

Whether you use a template or write it yourself, the bill of sale should be typed or written clearly in black or blue ink so it is straightforward to read. Avoid abbreviations that might be unclear. The goal is a document that both parties understand and that the DMV can process without questions.

What to do if the seller will not sign a bill of sale

If you are the buyer and the seller refuses to sign a bill of sale, do not complete the purchase. A bill of sale is your only proof that you own the vehicle, and without it, you cannot register it or transfer the title. A seller who refuses to sign may be hiding something—unpaid loans, liens, accident damage, or stolen vehicle status—or may straightforward be disorganized. Either way, it is a red flag.

If you are the seller and the buyer asks you not to sign a bill of sale, decline. Signing a bill of sale protects you by creating a dated record that you transferred ownership. Without it, you remain the registered owner in the state's eyes, and you could be held responsible for the vehicle's use after the sale.

In either case, a bill of sale is a basic protection that takes only a few minutes to complete. If one party refuses, it is a sign that the transaction is not safe to proceed with.

Frequently Asked Questions

Can I sell a vehicle in Colorado without a title document?

No. The seller must sign the title document itself, which is the official proof of ownership. The bill of sale documents the sale, but the title is what transfers ownership. If you have lost the title, contact the Colorado DMV to request a replacement before you sell the vehicle.

Do I need to notarize a bill of sale in Colorado?

No, Colorado does not require a bill of sale to be notarized. However, having it notarized adds an extra layer of proof that both parties signed it willingly and that their signatures are genuine. This can be useful if a dispute arises later. A notary public can notarize a bill of sale for a small fee at most banks, UPS stores, or legal offices.

What if the buyer and seller disagree on the sale price after the sale?

This is why a bill of sale matters. If both parties signed a bill of sale stating the price, that is the agreed-upon price. If one party later claims a different price was discussed, the signed bill of sale is the legal record of what was actually agreed to. Without one, it becomes a he-said-she-said situation with no proof.

Can I use a bill of sale from another state in Colorado?

Yes. Colorado accepts a bill of sale from any state as long as it contains the required information: both parties' names and addresses, the vehicle's VIN and odometer reading, the sale price, and the date. The format does not matter, only the content.

What if I bought a vehicle and the seller never signed the title?

Contact the seller when ready and ask them to sign the title document. The bill of sale alone is not enough; the seller must also sign the back of the title to transfer ownership. If the seller refuses or cannot be reached, contact the Colorado DMV for guidance on how to proceed. You may need to file a complaint or pursue legal action to obtain the title.