What a New Jersey 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. In New Jersey, it documents the sale price, the vehicle details, and the names and signatures of both the buyer and seller. The state does not require a bill of sale to transfer a title at the Motor Vehicle Commission (MVC), but you should create one anyway — it protects both of you by proving the sale happened, on what date, and for how much money.
If you sell a car without a bill of sale and the buyer later gets into an accident or racks up parking tickets, the vehicle could still be registered to you. A bill of sale is your proof that you no longer owned it. For the buyer, it shows they purchased the vehicle legally and can use it to register the car in their name.
New Jersey does not have an official state form for a bill of sale, which means you can write one yourself or use a template. Either way, it must include certain information and be signed by both parties.
Key Takeaways
- A bill of sale protects you by proving you sold the vehicle and are no longer responsible for it after the sale date.
- New Jersey does not require a bill of sale to transfer title, but creating one is a smart practice for both buyer and seller.
- The bill of sale must include the vehicle identification number (VIN), sale price, date of sale, and signatures from both the buyer and seller.
- Keep a copy for your records and give the original to the buyer, who will need it when they register the vehicle at the MVC.
- You can write a bill of sale yourself using a template or have an attorney prepare one; New Jersey does not provide an official form.
What information must be on a New Jersey bill of sale
Your bill of sale should include the vehicle's full identification number (VIN), make, model, year, and color. Write down the exact sale price in both numbers and words to avoid confusion — for example, "$5,500 (Five Thousand Five Hundred Dollars)". Include the date of the sale.
Both the buyer and seller must print their full legal names, addresses, and phone numbers. The seller should confirm that they own the vehicle free and clear, or disclose any liens (loans) against it. If there is a lien, the buyer needs to know before they buy. At the end, both parties must sign and date the document in front of a witness or notary public — New Jersey does not strictly require a notary, but having one sign makes the document stronger if there is ever a dispute.
You can also note the vehicle's odometer reading, the condition of the car (as-is, for example), and whether any equipment or keys are included in the sale. These details protect both of you later.
How to create and sign your bill of sale
Start with a template. You can find free bill of sale templates online from legal document websites, or you can write one from scratch using the information listed above. Type it out or write it clearly by hand — either is acceptable in New Jersey. Make sure both the buyer and seller can read every word.
Print two copies: one for you and one for the buyer. Both of you should sign and date each copy in the same ink. If possible, have a notary public or witness present when you both sign. The witness or notary should also sign and date the document. While New Jersey does not require this, it adds legal weight if questions arise later.
After signing, give the original to the buyer and keep a copy for yourself. The buyer will need their copy when they go to the Motor Vehicle Commission to register the vehicle in their name. You should keep your copy in a safe place for at least three to five years.
What happens to the title after you sell the vehicle
The buyer is responsible for transferring the title into their name at the New Jersey Motor Vehicle Commission. They will need the bill of sale, the original title certificate, a completed process for title and registration, and proof of insurance. The MVC will process the transfer and issue a new title in the buyer's name.
You, as the seller, should notify the MVC that you have sold the vehicle. You can do this by submitting the back of your title certificate or by filing a notice of sale. This removes you from the vehicle's registration and protects you from liability if the buyer gets into an accident or receives traffic tickets after the sale date. Some sellers skip this step, but it is important — it officially tells the state you no longer own the car.
When a bill of sale is not enough: liens and loans
If you still owe money on the vehicle — meaning there is a lien held by a bank or finance company — the bill of sale alone will not transfer the title. The lienholder must release the lien before the buyer can register the car in their name. You will need to pay off the loan first, or arrange for the buyer to pay it off at closing.
When the loan is paid, the lienholder will send you a lien release document. You must include this with the title when you give it to the buyer. Without it, the MVC will not issue a new title. If you are selling a vehicle with an outstanding loan, be clear about this in the bill of sale and discuss the payoff process with the buyer before you sign anything.
Protecting yourself as a seller
Keep a copy of the signed bill of sale and take a photo of the buyer's driver's license. Write down the license number on your copy. This creates a record of who bought the vehicle and when. If the car is later involved in a crime or accident, you have proof of the sale and the buyer's identity.
Do not hand over the keys or let the buyer take the vehicle until the bill of sale is signed by both parties. Make sure the buyer has insurance before they drive it away. If you are selling a vehicle with a loan, do not release the title until the loan is paid off and you have the lien release in hand.
File your notice of sale with the MVC within a reasonable time after the sale — ideally within a week or two. This is your final protection: it tells the state that you sold the vehicle on a specific date and are no longer responsible for it.
Where to get help with your bill of sale
If you want a lawyer to prepare the bill of sale for you, contact a local attorney who handles vehicle sales or real estate transactions. The cost is usually modest — often $50 to $150 — and the attorney will make sure the document is legally sound for New Jersey.
You can also contact the New Jersey Motor Vehicle Commission directly with questions about the sale process or what documents you need. Their website has information about title transfers, and you can call their customer service line if you have specific questions about your situation. Many public libraries also have free legal document templates and sometimes offer notary services.
Frequently Asked Questions
Do I have to notarize my bill of sale in New Jersey?
No, New Jersey does not require a notary for a bill of sale. However, having one sign the document makes it stronger evidence if there is ever a dispute about the sale. A notary costs $5 to $15 and is available at most banks, UPS stores, and some libraries.
What if the buyer does not register the vehicle in their name?
If the buyer does not transfer the title, the vehicle will still be registered to you. File your notice of sale with the Motor Vehicle Commission to protect yourself. If the buyer later gets a ticket or is in an accident, you have proof you sold the vehicle and are not responsible. You can also contact the MVC if you are concerned the buyer is not registering the car.
Can I sell a vehicle with a loan still on it?
Yes, but the buyer must understand that the lien must be paid off before they own it free and clear. You can arrange for the buyer to pay the loan directly at closing, or you can pay it off yourself and provide the lien release. The bill of sale should state that the vehicle has a lien and explain how it will be handled.
What if I lost the title certificate?
Contact the New Jersey Motor Vehicle Commission to request a duplicate title. You will need to fill out an process and pay a fee. Once you have the duplicate, you can proceed with the sale and bill of sale as normal. The buyer will still need the original title to register the vehicle in their name.
Should I accept a personal check for the sale?
It is safer to ask for cash, a cashier's check, or a bank transfer. A personal check can bounce after you have already handed over the keys and title. If you do accept a personal check, do not release the vehicle until the check has cleared your bank — this usually takes three to five business days.