What a bill of sale is and why Illinois requires one

A bill of sale is a written record that you sold a vehicle to someone else. In Illinois, it is not legally required by the state to complete a sale—you can sell a car without one—but you should create one anyway. The bill of sale protects both you and the buyer by documenting the price paid, the vehicle's identification number (VIN), the date of sale, and the names and signatures of both parties. If a dispute arises later about who owns the car or what was promised, the bill of sale is your proof.

Without a bill of sale, you have no written record that you transferred ownership. If the buyer gets into an accident, racks up parking tickets, or commits a crime with the vehicle before they register it in their name, you could be held liable because the title still shows your name. A bill of sale does not transfer the title itself—that happens through the Secretary of State—but it creates a paper trail showing when and to whom you handed over the vehicle.

Key Takeaways

  • Illinois does not legally require a bill of sale, but creating one protects you from liability if the buyer uses the vehicle before registering it in their name.
  • A bill of sale must include the VIN, sale price, date, and signatures of both buyer and seller, and should be kept by both parties.
  • You can write a bill of sale by hand on plain paper or use a template from the Illinois Secretary of State website.
  • The bill of sale is separate from the title transfer; you still need to sign the back of the title and submit it to the Secretary of State for the buyer to register the vehicle.
  • Keep a copy for your records even after you sell the car, in case questions arise about the sale later.

What information must go on an Illinois bill of sale

The bill of sale should include the vehicle's VIN (found on the dashboard, driver's side, or on the title itself), the make, model, and year. Write down the exact sale price in both numbers and words to avoid confusion—for example, "Two Thousand Five Hundred Dollars ($2,500.00)". Include the date of sale, the full names and addresses of both the seller and buyer, and the odometer reading at the time of sale.

Both the seller and buyer must sign and date the bill of sale. If the vehicle has a lien (meaning a bank or lender still owns part of it), note that on the bill of sale as well. You can also include a statement that the vehicle is sold "as-is" with no warranty, or note any known defects. The more detail you include, the stronger your protection if a problem arises later.

How to create a bill of sale in Illinois

You can write a bill of sale by hand on any plain paper. There is no official state form required. Start with the date at the top, then write out the seller's name and address, the buyer's name and address, and a straightforward statement like "I hereby sell the following vehicle to [buyer's name]." Include all the vehicle information and the sale price, then have both parties sign and date it.

If you prefer a template, the Illinois Secretary of State does not publish an official bill of sale form, but many free templates are available online that follow standard language. You can also search "Illinois bill of sale template" and find examples from legal document websites. The template should match the information listed above. Print it, fill it in by hand or computer, and have both parties sign it in front of each other if possible—this makes it harder to dispute later.

The difference between a bill of sale and a title transfer

A bill of sale and a title transfer are two separate documents that serve different purposes. The bill of sale is your private record of the sale; the title transfer is what you file with the Illinois Secretary of State to officially move ownership. You must do both for the sale to be complete.

To transfer the title, you sign the back of the vehicle's title certificate and give it to the buyer. The buyer then takes the signed title, the bill of sale, proof of insurance, and a completed process for Illinois Vehicle Registration (Form VSD 190) to a Secretary of State facility to register the vehicle in their name. Until the buyer completes this step, the title still shows your name, which is why the bill of sale matters—it proves you are no longer responsible for the vehicle.

When to sign the bill of sale and what happens next

Sign the bill of sale at the same time you hand over the keys and the title. Both the buyer and seller should sign it in front of each other. Make two copies—one for you and one for the buyer. Keep your copy in a safe place for at least a few years, even after the sale is complete.

After you sign the bill of sale and title, your responsibility for the vehicle ends. The buyer is now responsible for registering it, insuring it, and paying any taxes or fees. However, you remain the registered owner until the buyer submits the title to the Secretary of State. If the buyer does not register the vehicle promptly and something happens—an accident, a parking ticket, a traffic violation—you could still be contacted. This is another reason to keep your copy of the bill of sale; it proves you sold the vehicle on a specific date and are no longer liable.

What to do if you lose your copy or need to prove the sale later

If you lose your copy of the bill of sale, you still have options. If the buyer registered the vehicle in their name, you can contact the Illinois Secretary of State and request a record of the title transfer, which will show the date the new owner took ownership. This is not the same as the bill of sale, but it serves as proof that the vehicle is no longer in your name.

If a dispute arises—for example, if someone claims you still own the vehicle or if you are contacted about unpaid tickets—contact the Secretary of State's office with the VIN and explain that you sold the vehicle. They can confirm whether the title has been transferred. If the buyer never registered the vehicle and you are being held liable, you may need to file a report with the Illinois Secretary of State stating that the vehicle was sold and the title was signed over. Keep any documentation of the sale, including text messages or emails confirming the transaction, as backup.

Frequently Asked Questions

Can I sell a car in Illinois without a bill of sale?

Technically yes—Illinois does not legally require one. However, you should create one anyway. Without it, you have no proof you sold the vehicle, and you could be held liable for anything the buyer does with it before they register it in their name. A bill of sale takes five minutes to write and protects you.

What if the buyer does not register the vehicle right away?

Until the buyer registers the vehicle in their name, the title still shows your name. You remain the registered owner. If the buyer gets a ticket or is in an accident, you could be contacted. This is why you must keep your copy of the bill of sale—it proves you sold the vehicle and are no longer responsible for it. You can also contact the Secretary of State to report the sale if problems arise.

Do I need to notarize the bill of sale in Illinois?

No, notarization is not required in Illinois. Both parties straightforward need to sign and date it. However, having it notarized adds an extra layer of proof that both signatures are genuine, which can be helpful if a dispute arises later. Many banks and notary services offer this for a small fee.

What if I sold the car to a private buyer but they never transferred the title?

Contact the Illinois Secretary of State with your bill of sale and explain the situation. Provide the VIN and the date of sale. If the title has not been transferred, you may need to file a report stating that you sold the vehicle. Keep your bill of sale and any other documentation of the sale. If you are contacted about the vehicle later, present the bill of sale as proof that you no longer own it.

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

Yes, but note the lien on the bill of sale. The buyer should understand that the lender still has a claim on the vehicle until the loan is paid off. The lender's name and the loan balance should be listed on the title. The buyer will need to work with the lender to pay off the loan or assume it before they can register the vehicle in their name.