What an Alabama bill of sale is and why you need one
An Alabama bill of sale is a written record that documents 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. Both the buyer and seller should keep a copy for their records.
Alabama law does not require a bill of sale to register a vehicle, but the state's title transfer process does require proof of the sale price. Without a bill of sale, you will have difficulty proving what you paid or received, which matters if there is a dispute later or if the vehicle has a lien against it. The bill of sale also protects both parties by creating a clear record of the transaction.
Key Takeaways
- Alabama does not have a state-mandated bill of sale form, so you can use a template or write one yourself as long as it includes the vehicle details, sale price, and signatures from both parties.
- The bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the printed names and signatures of both the buyer and seller.
- Both the buyer and seller should sign and date the document in front of a witness or notary public to make it legally stronger, though Alabama does not require this.
- The buyer will need the bill of sale when explore for a title transfer at the Alabama Department of Revenue, along with the existing title and a completed process form.
Information that must be on the bill of sale
The bill of sale should clearly identify the vehicle being sold. Include the year, make, model, and most importantly, the vehicle identification number (VIN). The VIN is a 17-character code found on the driver's side dashboard, the door jamb, or the existing title. Without the VIN, the document is incomplete and may not be accepted during title transfer.
Write down the sale price in both numbers and words to avoid confusion. For example: "$5,500 (five thousand five hundred dollars)". Include the date the sale took place. Both the seller and buyer must print their full names and sign the document. Add their addresses as well, so there is no question about who the parties are.
If the vehicle has a lien (meaning a bank or lender still owns part of it), note that on the bill of sale. Write the lender's name and the loan account number if you have it. This alerts the buyer that the seller does not yet own the vehicle outright and that the lien must be paid off before the title can be transferred.
How to write or find a bill of sale template
Alabama does not provide an official state bill of sale form. You have two options: write one yourself or use a template. If you write one yourself, make sure it includes all the information listed above — vehicle details, sale price, date, and signatures from both parties. A handwritten bill of sale is legally valid in Alabama as long as it contains these elements.
Many online sources offer free bill of sale templates for Alabama. Search for "Alabama bill of sale template" and you will find several options. Some templates are generic and work for any state; others are Alabama-specific. Either type is acceptable. read the template, fill in the blanks with the correct information, print it, and have both parties sign and date it.
If you prefer, you can also contact a local title service office or a notary public. Some notaries keep bill of sale forms on hand and can walk you through the process. This adds a layer of formality and creates a notarized record, which is not required but can be helpful if questions arise later.
When to have the bill of sale signed and witnessed
The bill of sale should be signed at the time of the sale, when the money changes hands and the keys are transferred. Both the buyer and seller should be present. Have each person sign and print their name on the document. Write the date clearly.
While Alabama does not require a witness or notary public, having one present strengthens the document. A witness can confirm that both parties signed willingly and that they understood what they were signing. A notary public goes further — they verify the identity of both parties and create an official record of the signing. If you think there is any chance of a dispute later, spending a few dollars to have the bill of sale notarized is worth it.
Each party should receive a signed copy. If the document is notarized, the notary will provide certified copies. Keep your copy in a safe place. The buyer will need to bring their copy when they go to transfer the title.
What happens after the bill of sale is signed
Once the bill of sale is signed, the buyer becomes the owner of the vehicle, even though the title has not yet been transferred. The buyer should take the bill of sale, the existing title, and a completed process form to the Alabama Department of Revenue to transfer the title into their name. This process usually takes a few weeks.
The seller should keep their copy of the bill of sale as proof that they no longer own the vehicle. If the vehicle is later involved in an accident or crime, the bill of sale protects the seller by showing they sold it on a specific date. The seller should also notify their insurance company that the vehicle has been sold so their policy can be cancelled.
If there is a lien on the vehicle, the seller must pay off the loan before the title can be transferred to the buyer. The bill of sale documents this arrangement. The lender will release the lien once the loan is paid in full, and the seller will receive a lien release document to give to the buyer. The buyer will then submit the lien release along with the bill of sale and title process to complete the transfer.
Common mistakes to avoid when writing a bill of sale
The most common mistake is leaving out the VIN or writing it incorrectly. Double-check the VIN against the existing title or the vehicle itself before you write it on the bill of sale. A wrong VIN will cause delays or rejection when the buyer tries to transfer the title.
Another mistake is not writing the sale price clearly. If the price is unclear or missing, the Department of Revenue may reject the process or ask for clarification. Write the amount in both numbers and words, and make sure both parties agree on the price before signing.
Do not leave the date blank. The date matters because it establishes when the sale took place and when the buyer's ownership began. Signing without a date creates confusion if there is ever a question about the timeline.
Finally, make sure both parties actually sign the document. A bill of sale with only one signature is not valid. If the seller signs but the buyer does not, or vice versa, the document does not prove that both parties agreed to the sale.
Frequently Asked Questions
Can I use a bill of sale from another state?
Yes, a bill of sale from another state is acceptable in Alabama as long as it contains all the required information: vehicle details, sale price, date, and signatures from both parties. Alabama does not have a specific form requirement, so any clear written record of the sale will work.
Do I need to notarize the bill of sale?
No, notarization is not required by Alabama law. However, having a notary public witness the signing adds legal strength to the document and creates an official record. If you expect any complications with the sale, notarization is worth the small cost.
What if I lost my copy of the bill of sale?
If you are the seller and lost your copy, ask the buyer for a duplicate. If you are the buyer and lost your copy, contact the seller or check your records. If the bill of sale was notarized, the notary may have a copy on file. For the title transfer, you will need the original or a certified copy.
Can I sell a vehicle without a bill of sale?
Technically, you can transfer a vehicle without a bill of sale, but it is not recommended. The Department of Revenue will still need proof of the sale price to process the title transfer. Without a bill of sale, you may have to provide other documentation, such as a cancelled check or bank transfer record, to prove the transaction took place.
What if the buyer and seller cannot meet in person to sign?
Both parties can sign separate copies of the bill of sale and exchange them by mail or email. However, this is less find because there is no witness to confirm that both parties signed willingly. If possible, arrange to sign in person or have a notary public handle the signing remotely through a video call.