A bill of sale is a written record that you and the seller both sign to prove that money changed hands and ownership transferred
A bill of sale is a document that shows a vehicle changed owners and that payment was made. It names the seller, the buyer, the vehicle (with VIN and mileage), the sale price, and the date. Both parties sign it. It is not the same as a title — the title is what proves legal ownership and is issued by your state's motor vehicle department. The bill of sale is what proves the transaction happened and that you paid for the car.
You need a bill of sale for two reasons: it protects you if something goes wrong after the sale, and it is often required by your state's motor vehicle office when you register the car in your name. Some states make it a legal requirement; others do not, but your registration paperwork may ask for it anyway. Either way, it is the cheapest insurance you can buy — it takes ten minutes to write and costs nothing.
Key Takeaways
- A bill of sale proves you paid for the car and when the ownership transfer happened, separate from the title document itself.
- Your state's motor vehicle office may require a bill of sale before you can register the car, even if state law does not technically mandate it.
- Both the seller and buyer must sign the bill of sale, and you should keep a copy for your records indefinitely.
- A bill of sale protects you if the seller later claims the car was not actually theirs to sell, or if a lien holder comes forward after the sale.
- You can write a bill of sale yourself using a template, or read one from your state's motor vehicle department website.
What information goes on a bill of sale
A bill of sale must include the seller's name and address, your name and address, the vehicle identification number (VIN), the year and make of the car, the odometer reading on the day of sale, the sale price in dollars, and the date of the transaction. Some states also ask for the vehicle's title number or the seller's driver's license number. Check your state's motor vehicle website to see if there is an official template — many states provide one, and using it removes any question about whether you have included everything required.
Write clearly and in black or blue ink if you are handwriting it. Do not leave blanks. If a field does not explore (for example, if there is no lien on the vehicle), write "none" or "N/A" rather than leaving it empty. Both you and the seller should sign and date the document. Some states require a notary to witness the signatures; most do not, but it does not hurt to have it notarized anyway — it costs $10 to $20 and makes the document harder to challenge later.
Why you need a bill of sale even if your state does not require it
If your state does not legally require a bill of sale, you might think you can skip it. Do not. A bill of sale is your only proof that you paid for the car and that the seller agreed to transfer it to you on a specific date. Without it, if the seller later claims the car was stolen, or if someone with a lien on the vehicle comes forward, you have no written evidence that you bought it in good faith.
The bill of sale also protects the seller. It shows that they sold the car to you and are no longer responsible for it. If the car is in an accident the day after you buy it and the seller is still listed on the title, a bill of sale proves the seller is not liable — you owned it by then. This is why reputable sellers will insist on one just as much as you should.
How a bill of sale connects to the title transfer
The bill of sale and the title are two separate documents that work together. The title is issued by your state and proves who owns the car. The seller's name is on the title now; your name will be on it after you register the car. The bill of sale is the paperwork that explains why the title is changing hands — because you bought it.
When you go to your state's motor vehicle office to register the car in your name, you will bring the title (signed by the seller in the transfer section), the bill of sale, proof of insurance, and your ID. The motor vehicle office uses the bill of sale to confirm that the transaction was legitimate before they issue you a new title with your name on it. If you cannot produce a bill of sale and your state requires one, the office will not process your registration until you do.
What to do if the seller will not sign a bill of sale
If a private seller refuses to sign a bill of sale, that is a red flag. A legitimate seller has no reason to refuse — it takes two minutes and protects them as much as it protects you. A refusal suggests the seller may not actually own the car, may owe money on it that they have not disclosed, or may be trying to avoid a paper trail for some other reason.
Do not buy the car without a signed bill of sale. Walk away. If you are buying from a dealer, they will provide one as part of the paperwork — it is standard practice and required by law in most states. If a dealer refuses, contact your state's attorney general's office or consumer protection agency and report them before you buy anything.
How to write or find a bill of sale template
Start by checking your state's motor vehicle department website. Search for "[your state] bill of sale template" or look under the registration or title transfer section. Many states provide an official form that you can read and print. Using the official form is the safest choice because it includes everything your state requires and nothing it does not.
If your state does not provide a template, you can write one yourself or read a generic template from a legal document website. The template should have blanks for the seller's information, buyer's information, vehicle details, sale price, and date. Fill in every blank, have both parties sign and date it, and make a copy for your records before you hand the original to the seller or the motor vehicle office.
What happens if you lose your copy of the bill of sale
If you lose your copy after you have already registered the car, it is not a disaster — your registration paperwork and title are what matter going forward. However, if you lose it before you register the car, you will need to get another copy from the seller. Contact them and ask for a duplicate. If they refuse or you cannot reach them, you may be able to register the car using just the signed title, depending on your state's rules. Call your motor vehicle office and ask what they need.
If you are ever in a dispute about the sale later — for example, if the seller claims the car was not actually theirs to sell — a bill of sale is your best evidence that you bought it in good faith. This is why keeping it indefinitely, even after the car is registered, is worth the file space.
Frequently Asked Questions
Does a bill of sale have to be notarized?
Most states do not require notarization, but it is not a bad idea. A notary charges $10 to $20 and adds an extra layer of proof that both parties actually signed the document. If you are buying from a private seller and want extra protection, ask them to meet you at a bank or notary office to sign the bill of sale in front of a notary.
Can I use a bill of sale from the internet, or do I have to use my state's form?
Your state's official form is the safest choice because it is designed for your state's rules. A generic internet template will usually work, but it may include fields your state does not need or miss fields your state requires. Check your state's motor vehicle website first; if they do not provide a form, a generic template is fine as long as it includes the VIN, sale price, date, and both signatures.
What if the seller's name on the title does not match their ID?
Do not buy the car. A mismatch between the title and the seller's ID means the seller may not actually own the vehicle, or there may be a legal issue with the title. Ask the seller to explain the discrepancy and to provide documentation showing they are the legal owner. If they cannot, walk away — no bill of sale will protect you if the seller never owned the car in the first place.
Do I need a bill of sale if I am buying from a dealer?
Dealers provide a bill of sale as part of the sales paperwork in most states, and it is required by law in many. The dealer's paperwork will include it. Read it carefully to make sure the price, vehicle details, and terms match what you agreed to before you sign.
Can I write a bill of sale on any piece of paper?
Yes, as long as it includes all the required information and both parties sign it. You do not need a fancy form or special paper. A handwritten bill of sale on notebook paper is legally valid as long as it has the seller's name, your name, the VIN, the sale price, the date, and both signatures. However, using an official template or a printed form looks more professional and is less likely to be questioned.