What a bill of sale does 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 it to you. It shows the date of the sale, the vehicle details (make, model, year, VIN), the price paid, and the names and signatures of both the buyer and seller. When you sign one, you are documenting that money changed hands and ownership transferred.

The bill of sale protects both of you. For the seller, it proves you no longer own the car — if the buyer gets into an accident or racks up parking tickets after the sale, those are their responsibility, not yours. For the buyer, it proves they paid for the vehicle and have a right to register it in their name. Without one, disputes over who owns the car or whether the sale actually happened can drag on for months.

Most states do not legally require a bill of sale to transfer a vehicle title, but many do require it as supporting documentation when you register the car with the DMV. Even where it is not required, creating one is the cheapest insurance against future problems — it costs nothing and takes fifteen minutes.

Key Takeaways

  • A bill of sale documents the sale price, vehicle details, and both parties' signatures, protecting the seller from liability after the sale and the buyer from ownership disputes.
  • Most states do not legally require a bill of sale, but many ask for one when you register the vehicle at the DMV, so check your state's requirements before the sale.
  • You can use a PDF template from your state's DMV website, a generic template, or create your own as long as it includes the VIN, sale price, date, and both signatures.
  • Both the buyer and seller should keep a signed copy; the buyer typically submits theirs to the DMV along with the title process.
  • A bill of sale does not transfer the title itself — you still need to sign over the title document and submit it to your state's DMV.

Where to find a bill of sale template

Your state's DMV website often has an official bill of sale form you can read as a PDF. Search "[your state] DMV bill of sale" or look under the "Forms" or "Vehicle Registration" section of your state's website. Some states (including California, Florida, and Texas) provide their own forms; others do not have an official version but accept any bill of sale that includes the required information.

If your state does not offer one, you can use a generic template from a legal document site or a free template from a reputable source. The template does not have to be fancy — a handwritten bill of sale on plain paper is legally valid as long as it contains the essential details. What matters is that both parties sign it and keep a copy.

Some car-buying websites and automotive organizations also provide free downloadable templates. Make sure whatever you use includes spaces for the VIN, sale price, date, odometer reading, and the printed names and signatures of both buyer and seller.

What information must be on the bill of sale

At minimum, include the vehicle's VIN (Vehicle Identification Number), make, model, and year. Add the sale price in words and numbers (for example, "One Thousand Five Hundred Dollars ($1,500.00"). Write the date of the sale, the odometer reading at the time of sale, and the condition of the vehicle (for example, "as-is" or "with warranty").

Both the buyer and seller must print their full names and sign the form. Include their addresses and phone numbers if possible — this makes it easier to track someone down if a question arises later. Some states also ask for the driver's license numbers of both parties.

If there is a lien on the vehicle (meaning a bank or lender still owns part of it), note that on the bill of sale. For example: "Vehicle subject to lien held by [Lender Name]." This tells the buyer they cannot take full ownership until the lien is paid off and released by the lender.

How to fill out and sign the bill of sale

Print the template or write out the bill of sale by hand. Fill in all the blanks with accurate information — do not leave fields empty or use abbreviations that could be misread. Write the VIN exactly as it appears on the title and registration; a single digit wrong can cause problems at the DMV.

Both the buyer and seller should read the completed form before signing. Make sure the sale price matches what was actually agreed to, and that the vehicle description is correct. Sign and date the form in front of each other if possible, or have the other party sign and return it to you.

Make at least two copies — one for the buyer and one for the seller. The buyer will need their copy to submit to the DMV when they register the vehicle. Keep your copy in a safe place; you may need it years later if a question comes up about when you sold the car or what condition it was in.

Submitting the bill of sale to your state DMV

The buyer is responsible for submitting the bill of sale to the DMV as part of the vehicle registration process. They will mail or bring it in along with the signed title, proof of insurance, and the registration process. The exact process and important date vary by state — some require submission within ten days of the sale, others within thirty days.

The seller does not usually submit the bill of sale to the DMV; the buyer does. However, some states ask the seller to file a "Notice of Sale" or "Release of Liability" form with the DMV to formally notify the state that they no longer own the vehicle. Check your state's DMV website to see if this applies to you.

Keep your copy of the signed bill of sale even after the sale is complete. If the buyer does not register the vehicle promptly and it gets into an accident or is cited for a violation, you may need to prove to the DMV or police that you sold it and are no longer responsible.

Bill of sale vs. the title document

A bill of sale and a title are two different documents that work together. The title is the official government record of who owns the vehicle — it is issued by your state and has your name printed on it. The bill of sale is a private record between you and the buyer that documents the transaction.

To transfer ownership, you must sign the back of the title document itself (or fill out a separate title transfer form, depending on your state). The buyer then takes the signed title to the DMV and applies for a new title in their name. The bill of sale supports that process by proving the sale took place and at what price.

In other words: the bill of sale proves the sale happened; the title transfer proves ownership changed. Both are needed for a complete, legal transfer of the vehicle.

Common mistakes to avoid

Do not leave the sale price blank or write "cash" without an amount — the DMV and courts need to know the actual dollar value. Do not use "N/A" or "unknown" for the VIN; if you cannot read it, look it up on the registration or title before you sign anything.

Do not sign the bill of sale before the buyer has inspected the vehicle and agreed to the price and condition. Do not assume the buyer will handle submitting it to the DMV — follow up after a week or two to make sure they have registered the car in their name. If they do not, you may still be listed as the owner and could be held liable for their actions.

Do not use a bill of sale as a substitute for signing over the title itself. Both documents are required; one does not replace the other. If you are selling a vehicle with a lien, do not sign over the title until the lien is paid off and the lender releases it — the bill of sale alone does not clear a lien.

Frequently Asked Questions

Is a handwritten bill of sale legal?

Yes. A handwritten bill of sale is legally valid as long as it includes the VIN, sale price, date, and both signatures. It does not have to be typed or printed. Many states accept handwritten bills of sale at the DMV, though some prefer a typed version for clarity.

What if the buyer and seller cannot meet in person to sign?

You can sign separately and mail or email copies to each other. Both parties should sign their copy, and each should keep a fully signed version. Some states allow notarized signatures, which adds an extra layer of proof if a dispute arises later.

Do I need a bill of sale if I am selling a car to a family member?

Yes. Even a sale between family members should be documented with a bill of sale. It protects both of you and is often required by the DMV when the buyer registers the vehicle, regardless of the relationship.

What happens if I sell a car but the buyer never registers it?

If the buyer does not register the vehicle in their name, you may remain the registered owner on the DMV's records. This means you could be held liable for parking tickets, tolls, or accidents involving the car. Keep your copy of the signed bill of sale and consider filing a "Notice of Sale" or "Release of Liability" with your state DMV to formally notify them that you no longer own the vehicle.

Can I use a bill of sale if there is still a loan on the vehicle?

You can use a bill of sale, but the title cannot transfer until the loan is paid off and the lender releases the lien. Note on the bill of sale that the vehicle is subject to a lien, and make sure the buyer understands they cannot take full ownership until the debt is cleared. The buyer may want to pay off the loan themselves or arrange for the seller to pay it off at closing.