Alabama requires a bill of sale for most vehicle transfers, but the state does not mandate a specific form
Alabama law does not provide an official bill of sale template. Instead, the state accepts any written document that records the sale of a vehicle between a buyer and seller, as long as it contains the essential information the Alabama Department of Revenue needs to process the title transfer. You can write your own, use a template from a private source, or purchase one from an office supply store — what matters is that the document includes the required details and is signed by both parties.
The bill of sale serves as proof of ownership transfer and protects both buyer and seller by creating a record of the transaction. When you submit it to the Alabama Department of Revenue along with your title process, it becomes part of the official record. Without it, the state cannot legally transfer the title to the new owner's name.
Key Takeaways
- Alabama does not provide a state bill of sale form, so you can create one yourself or use a private template as long as it includes all required information.
- 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 buyer and seller.
- Both the buyer and seller must sign the document in front of a notary public or witness — notarization is not legally required but is strongly recommended to prevent disputes.
- You must submit the original or certified copy of the bill of sale to the Alabama Department of Revenue when you file for a title transfer within 30 days of purchase.
What information must appear on an Alabama bill of sale
The bill of sale must clearly identify the vehicle being sold. Include the vehicle identification number (VIN), the year, make, model, and color. These details prevent confusion if the buyer or seller owns multiple vehicles and protect both parties by making the document specific to one transaction.
The document must also state the sale price — the actual amount paid, not a reduced or inflated figure. The date of the sale must be written out clearly. Both the buyer and seller must print their full legal names and sign the document. Include the seller's address and the buyer's address so the Department of Revenue knows where to send the new title.
If the vehicle has a lien (a loan against it), the name and address of the lienholder should appear on the bill of sale. This alerts the buyer that the seller does not yet own the vehicle free and clear, and it tells the Department of Revenue that the lien must be satisfied before the title can transfer.
Whether you need a notary or witness signature
Alabama law does not require the bill of sale to be notarized. A notary's seal is not a legal requirement for the document to be valid or accepted by the Department of Revenue. However, having a notary public witness and certify the signatures adds a layer of protection for both parties. A notary creates an official record that the signatures are genuine, which can prevent fraud and resolve disputes if either party later claims they did not sign the document.
If you do not use a notary, you can have the document signed in front of a witness — a third party who is present when both buyer and seller sign. The witness should print their name and sign the document as well. While this does not carry the legal weight of notarization, it does create evidence that both parties were present and willing at the time of signing.
Many people choose notarization because it costs only a few dollars and is widely available at banks, credit unions, and UPS stores. The small expense is worth the protection, especially for higher-value vehicles or transactions between people who do not know each other well.
How to handle the bill of sale if you buy from a private seller
When you purchase a vehicle from an individual rather than a dealership, you and the seller should each keep a signed copy of the bill of sale. The buyer will need the original or a certified copy to submit to the Alabama Department of Revenue as part of the title transfer request. The seller should keep their copy for their records in case questions arise later about the sale.
Before you hand over payment, make sure the seller has the title in hand and that their name matches the name on the title. Ask the seller to sign the bill of sale before you pay them. This protects you because it creates a written record that the sale occurred, even if the seller later refuses to sign the title or claims the vehicle was not actually sold.
If the vehicle has an outstanding loan, the seller's lender must release the lien before the title can transfer to you. Ask the seller to provide proof that the lender has been paid off or will be paid off at closing. Some sellers arrange for the lender to release the lien directly to the buyer's lender if the buyer is financing the purchase.
What happens when you submit the bill of sale to the Department of Revenue
You must submit the bill of sale to the Alabama Department of Revenue within 30 days of the purchase date. You can file in person at any county probate office, by mail, or online through the department's website. The probate office will review the bill of sale to confirm it contains all required information and matches the title process you are filing.
If the bill of sale is incomplete or illegible, the probate office will reject it and ask you to resubmit a corrected version. This can delay your title transfer by several weeks. To avoid rejection, make sure all names are spelled correctly, the VIN matches the vehicle you own, and both signatures are present and clear.
The probate office will keep the original bill of sale as part of the title file. You will receive a copy in your title packet once the transfer is complete. This copy serves as your proof that you purchased the vehicle legally and that the title transfer was processed by the state.
Common mistakes that delay or block title transfers
One frequent error is leaving the sale price blank or writing "as is" instead of a dollar amount. The Department of Revenue uses the sale price to calculate the title transfer fee, so the price must be stated clearly. If the price is missing, the office will return the bill of sale and ask you to provide it.
Another common problem is a mismatch between the VIN on the bill of sale and the VIN on the title. Even a single digit difference will cause the process to be rejected. Before you sign the bill of sale, verify the VIN by checking the title, the vehicle's dashboard, and the driver's side door jamb. All three should match exactly.
Unsigned documents are also rejected. Both the buyer and seller must sign in ink — electronic signatures are not accepted for the bill of sale itself, though some counties now accept electronic submission of the document. If either party's signature is missing, the probate office will return the bill of sale and ask for a corrected version.
Frequently Asked Questions
Can I use a bill of sale from a website or template?
Yes. Alabama does not require a specific form, so any written document that includes the required information — VIN, sale price, date, buyer and seller names and addresses, and both signatures — will be accepted by the Department of Revenue. Many free templates are available online, and they work as long as you fill in all the blanks accurately.
What if the seller refuses to sign the bill of sale?
You cannot transfer the title without the seller's signature on the bill of sale. If the seller refuses to sign, you have no legal proof of purchase and the Department of Revenue will not process your title process. Before you pay for the vehicle, make sure the seller is willing to sign the bill of sale and the title.
Do I need the bill of sale if I inherit a vehicle?
No. If you inherit a vehicle, you submit a copy of the will or probate court order to the Department of Revenue instead of a bill of sale. The bill of sale is only for sales between a buyer and seller.
Can I sell my vehicle without a bill of sale?
Legally, you should not. Without a bill of sale, there is no written record of the sale, and the buyer has no proof they purchased the vehicle from you. If the buyer later gets into an accident or receives a traffic ticket, you could be held liable because the title is still in your name. Always create and sign a bill of sale before you hand over the keys.
How long do I keep the bill of sale after the title transfers?
Keep your copy indefinitely. The bill of sale is proof of your ownership history and can be useful if you ever need to dispute a claim about the vehicle or provide documentation of the purchase for insurance or legal purposes.