What an Alabama auto bill of sale is and why you need one
An Alabama auto bill of sale is a written record that documents the transfer of a vehicle from one owner to another. It serves as proof that you bought or sold a car, truck, or motorcycle, and it protects both the buyer and seller by creating a paper trail of the transaction.
Alabama law does not require a bill of sale to transfer vehicle ownership — the title document itself is what the state recognizes as proof of ownership. However, a bill of sale is still practical. It shows what price was paid, when the sale happened, and the condition of the vehicle at handoff. If a dispute arises later, or if the title transfer gets delayed, the bill of sale is your evidence that the sale was legitimate and complete on your end.
Many buyers use a bill of sale to protect themselves against liability. Once you sign it over and the buyer has a signed bill of sale in hand, you have documented proof that you are no longer the owner — important if the vehicle is later involved in an accident or traffic violation.
Key Takeaways
- Alabama does not legally require a bill of sale, but creating one protects both buyer and seller by documenting the sale price, date, and vehicle condition.
- A bill of sale should include the vehicle identification number (VIN), the names and addresses of both parties, the sale price, and the date of sale.
- You can write a bill of sale by hand or type it — Alabama has no official form requirement, though the state provides a sample template.
- The buyer should keep the signed bill of sale with their title paperwork, and the seller should keep a copy for their records.
- A bill of sale does not transfer the title itself — you must still complete the title transfer through the Alabama Department of Revenue Motor Vehicle Division.
What information to include in an Alabama bill of sale
Your bill of sale should contain the vehicle identification number (VIN), which appears on the title and on the driver's side of the dashboard. Include the vehicle's year, make, model, and color so there is no confusion about which car is being sold.
Write the full legal name and current address of the seller and the buyer. Include the sale price — even if the vehicle is a gift, write "gift" or "$0" so the document is complete. Add the date the sale took place or will take place.
You may also note the vehicle's condition (for example, "as-is" or "runs well, minor dent on driver's side door") and whether any warranties are included. If the buyer is assuming an existing loan on the vehicle, that should be stated. Sign and date the document, and have the buyer sign and date it as well.
How to write or obtain a bill of sale
You can write a bill of sale by hand on plain paper or type it in a word processor — Alabama does not require a specific form. The state does provide a sample bill of sale template on the Alabama Department of Revenue website under the Motor Vehicle Division section, which you can read and fill in.
If you prefer not to create one yourself, some title companies, car dealerships, and notary publics can prepare a bill of sale for you, usually for a small fee. Online legal document services also offer Alabama-specific templates, though you will need to fill in your own information.
Keep the language straightforward and clear. The document does not need to be notarized in Alabama, though having it notarized adds an extra layer of verification if a dispute arises later. If you choose to have it notarized, both the buyer and seller should be present.
When to sign the bill of sale and what happens next
Sign the bill of sale at the time of sale, ideally in front of a witness or notary. Both the buyer and seller should sign and date it. Each party should receive a copy — the buyer keeps theirs with the title paperwork, and the seller keeps one for their records.
The bill of sale does not transfer the title. After the sale, the buyer must take the signed bill of sale, the current title, and a completed title transfer form to the Alabama Department of Revenue Motor Vehicle Division office in their county. The buyer pays the title transfer fee (the amount varies by county) and the state issues a new title in the buyer's name.
The seller should not sign over the title until the bill of sale is signed and both parties have copies. Once the buyer has the signed bill of sale, the seller's responsibility for the vehicle is documented as complete.
Protecting yourself as a buyer or seller
As a buyer, inspect the vehicle before signing anything and make sure the VIN on the bill of sale matches the VIN on the title and on the car itself. Confirm that the seller's name on the title matches the name on the bill of sale. If the seller is not the person listed on the title, do not proceed — the seller does not have the legal right to sell the vehicle.
Ask the seller whether the vehicle has any outstanding loans or liens. If it does, the lienholder's name will appear on the title, and the loan must be paid off before the title can be transferred to you. A bill of sale does not clear a lien — only the lienholder can do that.
As a seller, keep a copy of the signed bill of sale and the signed title transfer form. Do not sign the title until you have the bill of sale signed by the buyer. If the buyer later claims they never bought the vehicle, or if the vehicle is involved in an accident before the title transfer is complete, your signed bill of sale proves you completed your part of the sale.
Common mistakes to avoid
Do not leave the bill of sale blank or incomplete. Fill in every field, including the VIN, sale price, and date. A blank or partially filled bill of sale can be altered after you sign it, leaving you vulnerable to fraud.
Do not sign the title before the buyer signs the bill of sale. The bill of sale is your proof that the sale happened; the title transfer is the legal step that follows. If you sign the title first, you have no documented record of the transaction.
Do not assume the bill of sale transfers the title. It does not. The buyer must complete the title transfer through the Alabama Department of Revenue. If the buyer never transfers the title and the vehicle is later involved in an accident or crime, you could still be listed as the owner.
Do not ignore a mismatch between the VIN on the bill of sale and the VIN on the title or the vehicle. Stop the transaction and clarify the discrepancy before anyone signs anything.
Where to find Alabama's bill of sale template and title transfer forms
The Alabama Department of Revenue Motor Vehicle Division website provides a sample bill of sale form and all the title transfer documents you need. Visit the Motor Vehicle Division page and look for the "Forms" section. You can read the documents, print them, and fill them in by hand or on your computer.
You can also visit a Motor Vehicle Division office in person to pick up printed copies of the forms. Offices are located in each county. If you are unsure which office serves your area, the state website has a county-by-county office locator.
Frequently Asked Questions
Does Alabama require a notary on a bill of sale?
No, Alabama does not require a notary for a bill of sale to be valid. However, having it notarized adds extra verification and can be helpful if a dispute arises. If you choose to have it notarized, both the buyer and seller should be present with a valid ID.
What if I lost the bill of sale after I sold my car?
If you no longer have a copy, contact the buyer and ask them to provide you with a copy of the signed bill of sale. If you cannot reach the buyer, you can request a copy of the title transfer form from the Alabama Department of Revenue Motor Vehicle Division, which will show that the title was transferred out of your name.
Can I use a bill of sale if the vehicle has a loan on it?
Yes, you can use a bill of sale, but the loan must be paid off before the title can be transferred to the buyer. Note on the bill of sale that the vehicle has an outstanding loan and that the seller will pay it off before delivering the title. The lienholder's name appears on the title, and only they can release the lien.
What if the buyer and I disagree on the sale price after we sign the bill of sale?
The signed bill of sale is a binding record of the agreed-upon price. If a dispute arises, the bill of sale is the evidence of what was agreed to. If you have concerns before signing, clarify the price and all terms in writing before both parties sign.
Do I need a bill of sale if I am trading in my car at a dealership?
No. Dealerships handle the title transfer themselves and will provide you with their own paperwork. You do not need a separate bill of sale for a trade-in transaction.