What an Alabama automobile bill of sale is and why you need one
An Alabama automobile bill of sale is a document that records the transfer of a vehicle from one owner to another. It serves as proof that the sale took place, who bought it, who sold it, and for how much. When you buy or sell a car in Alabama, you will need this document to register the vehicle with the Alabama Department of Revenue, Motor Vehicle Division.
The bill of sale protects both the buyer and the seller. For the buyer, it proves ownership and protects against claims that the sale never happened. For the seller, it documents that they no longer own the vehicle and are not responsible for it after the sale date. Without a bill of sale, you cannot legally transfer the title to the new owner or register the vehicle in their name.
Alabama does not have a single state-mandated bill of sale form, which means you can use a generic bill of sale template or create your own, as long as it includes all required information. However, the Alabama Department of Revenue accepts bills of sale that contain the essential details, and some dealerships and title services provide their own forms.
Key Takeaways
- An Alabama bill of sale must include the names and addresses of both buyer and seller, the vehicle identification number (VIN), the sale price, and the date of sale.
- Both the buyer and seller must sign the bill of sale in front of a notary public or witness for it to be accepted by the Alabama Department of Revenue.
- You will submit the bill of sale along with the signed title certificate when you register the vehicle or transfer ownership at the county probate office.
- The bill of sale should be kept by both parties — the seller as proof of sale and the buyer as proof of purchase.
What information must be on the bill of sale
The bill of sale must contain the seller's full name, address, and phone number. It must also include the buyer's full name, address, and phone number. Both names should match the identification documents you will present when you register the vehicle or transfer the title.
The vehicle information section must include the vehicle identification number (VIN), the year, make, and model of the vehicle, the color, the odometer reading at the time of sale, and the license plate number if one is currently assigned. You can find the VIN on the dashboard of the vehicle, on the title certificate, or on the vehicle registration card.
The sale price must be stated in the bill of sale. Write out the amount in both numbers and words to avoid confusion — for example, "Two Thousand Five Hundred Dollars ($2,500.00)". The date of sale should be the actual date the money changed hands and the keys were transferred, not a future date or a date in the past.
You may also include the condition of the vehicle (as-is, with warranty, etc.), any known defects or damage, and whether the sale includes any accessories or equipment. These details are not required by Alabama law but can prevent disputes later.
How to sign and notarize the bill of sale
Both the buyer and the seller must sign the bill of sale. The signatures should be in blue or black ink and should match the names printed on the document. Do not use initials or nicknames — use your legal name as it appears on your driver's license or state identification card.
Alabama law does not strictly require the bill of sale to be notarized, but the Alabama Department of Revenue strongly recommends it. A notarized bill of sale carries more weight as proof of the transaction and can prevent fraud. To have the document notarized, take it to a notary public along with a valid photo ID. The notary will watch you sign, verify your identity, and then sign and stamp the document themselves.
You can find a notary public at most banks, credit unions, law offices, and UPS stores. Some charge a small fee, usually between $5 and $15 per signature. If notarization is not possible, you can have the bill of sale signed in front of a witness — someone who is not related to either party and who can sign their name and print their address on the document.
When to submit the bill of sale to the state
The bill of sale is submitted as part of the vehicle registration or title transfer process, not as a standalone document. The buyer will take the bill of sale, the signed title certificate from the seller, and proof of insurance to the county probate office or to the Alabama Department of Revenue to register the vehicle in their name.
The timing depends on whether the vehicle is new or used and whether it is being transferred between private parties or purchased from a dealer. For a private sale, the buyer should submit the documents within 30 days of the sale date. If you wait longer, you may face penalties or be unable to register the vehicle until the title issue is resolved.
The seller should keep a copy of the signed bill of sale for their records. This protects the seller if questions arise later about when the vehicle was sold or who owned it at a particular time. The buyer should also keep a copy until the title is officially transferred and the new registration card arrives in the mail.
What happens if the title is already signed over
If the seller has already signed the back of the title certificate and left the buyer's name blank, a bill of sale is still necessary. The bill of sale documents the sale price and the exact date of transfer, information that may not appear on the title itself. Submit both documents together when you register the vehicle.
If the title is lost, damaged, or the seller cannot locate it, you can still proceed with the sale using a bill of sale. The buyer will need to contact the Alabama Department of Revenue to request a duplicate title or a bonded title. A bonded title is issued when the original title cannot be found, and it requires the buyer to purchase a surety bond as protection against claims by a previous owner.
Common mistakes to avoid when completing a bill of sale
Do not leave any required fields blank. If a field does not explore to your sale, write "N/A" or draw a line through it rather than leaving it empty. Blank spaces can be filled in later by someone else, which opens the door to fraud.
Do not use white-out or erasers to correct mistakes. If you make an error, cross it out with a single line, write the correct information above or beside it, and have both parties initial and date the correction. This shows that the change was intentional and made at the time of signing, not added later.
Do not sign the bill of sale before all information is filled in. The buyer and seller should review the entire document together, verify that all details are correct, and then sign. Signing a blank or incomplete bill of sale can lead to disputes about what was actually agreed to.
Do not forget to include the odometer reading. Alabama law requires the odometer reading to be recorded on the bill of sale or the title. If the odometer is broken or the mileage is unknown, note that on the document.
Frequently Asked Questions
Can I use a bill of sale from a template online?
Yes. Alabama does not have a state-specific bill of sale form, so you can use any template that includes the required information: names and addresses of both parties, VIN, year, make, model, sale price, date, and odometer reading. Make sure the template is designed for Alabama or is generic enough to work in any state.
Do I need a bill of sale if I'm buying from a dealership?
No. Dealerships provide their own sales contract or purchase agreement, which serves the same purpose as a bill of sale. The dealership will handle the title transfer and registration for you. You will not need a separate bill of sale.
What if the buyer and seller cannot meet in person to sign?
Some states allow electronic signatures or notarization by video, but Alabama's requirements are not entirely clear on this. Contact the Alabama Department of Revenue or a local notary public to ask whether remote notarization is accepted. If not, the buyer and seller should meet in person or arrange for a notary to witness both signatures separately.
Is there a fee to file the bill of sale with the state?
The bill of sale itself has no filing fee. However, when you register the vehicle or transfer the title at the county probate office, you will pay registration and title transfer fees. These fees vary by county and by the value of the vehicle.
What should I do with the bill of sale after the title is transferred?
Keep a copy for your records for at least three to five years. The seller should keep a copy as proof that they sold the vehicle and are no longer responsible for it. The buyer should keep a copy until the new title arrives and is safely stored.