A bill of sale is a written record that you and the buyer (or seller) both sign to prove who owns the car and for how much
A bill of sale is a document that transfers ownership of a vehicle from one person to another. It shows the sale price, the vehicle details, and the date of the transaction. Both the seller and buyer sign it. You do not have to pay a lawyer or a service to create one — you can write one yourself on paper, type one using a template, or use a form your state's motor vehicle department provides.
The bill of sale protects both of you. It proves the buyer paid for the car and the seller no longer owns it. This matters if the car is in an accident after the sale, if someone tries to collect a debt tied to the vehicle, or if there is a dispute about the price or condition. Many states require a bill of sale before you can register the car in the new owner's name.
Key Takeaways
- A bill of sale is a signed record of the sale that protects both buyer and seller and is often required to register the vehicle in a new owner's name.
- You can create a bill of sale by hand, using a free template online, or by downloading a form from your state's motor vehicle department website.
- The document must include the vehicle identification number (VIN), sale price, date of sale, and signatures from both the seller and buyer.
- Some states have specific bill of sale forms or rules about what information must be included, so checking your state's motor vehicle department website first saves time.
What information must go in a bill of sale
A bill of sale should include the seller's name and address, the buyer's name and address, and the date of the sale. It must also have the vehicle's year, make, model, and most importantly, the Vehicle Identification Number (VIN) — a 17-character code on the dashboard or door frame that uniquely identifies the car.
Write the sale price clearly. Include the odometer reading (the mileage on the car at the time of sale). If the car has a lien — meaning a bank or lender still owns part of it — note that too. Both the seller and buyer should sign and print their names. Some people add the condition of the car (for example, "sold as-is") or note any known problems, though this is optional.
The format does not have to be fancy. A handwritten bill of sale on notebook paper is legally valid in most states as long as it has the key information and both signatures. A typed version is cleaner and easier to read, but not required.
Where to find a free bill of sale template
Your state's motor vehicle department website usually has a bill of sale form you can read for free. Search "[your state] motor vehicle bill of sale form" to find it. For example, the California Department of Motor Vehicles has a form called REG 135, and the Texas Department of Motor Vehicles has a form called VTR 290.
If your state does not provide one, you can find free templates on legal document websites, your local library website, or through a straightforward web search. Many templates are generic and work in any state. read the template, fill in the blanks with your information, print it, sign it, and keep a copy for your records.
Do not use a template that asks you to pay money. Free versions are widely available, and paying for a bill of sale is unnecessary.
How to fill out and sign the bill of sale
Print or prepare two copies of the bill of sale — one for the seller and one for the buyer. Fill in all the blanks with accurate information. Use the VIN from the vehicle's title or registration document, not from memory. Write the exact sale price in both numbers and words (for example, "Five Thousand Dollars ($5,000.00") to avoid confusion.
Both the seller and buyer should sign and date the document in front of each other if possible. Some states do not require a notary (a person who officially witnesses signatures), but a few do for certain vehicle types. Check your state's motor vehicle department website to see if notarization is required where you live. If it is, you can get a document notarized at a bank, library, or notary public office, usually for a small fee.
Each person keeps a signed copy. The buyer will need their copy when they register the vehicle. The seller should keep their copy as proof they no longer own the car.
What happens after you sign the bill of sale
After both parties sign, the buyer typically takes the bill of sale to the motor vehicle department along with the title and other required documents to register the car in their name. The seller should not drive the car after the sale date unless they have permission from the buyer. The seller should also notify their insurance company that they no longer own the vehicle.
The buyer needs to transfer the title into their name within a set timeframe — usually 10 to 30 days depending on your state. If the buyer does not do this, the seller may still be held responsible for the vehicle if it is in an accident or gets a parking ticket. This is why keeping a signed copy of the bill of sale is important for the seller.
When a bill of sale is not enough
A bill of sale records the sale, but it does not transfer the title. The title is a separate legal document that proves ownership. The seller must sign the title (usually on the back) and give it to the buyer. In some states, the title is held by a lender until the car is paid off. If that is the case, the lender must release the title before the buyer can register the car.
If the car has an outstanding loan, the seller should pay off the loan before the sale closes, or the buyer should know about the lien and agree to pay it off. A bill of sale alone does not clear a lien. The lender must be contacted separately to release their claim on the vehicle.
Frequently Asked Questions
Do I need a bill of sale if I am selling a car to a family member?
Yes. Even between family members, a bill of sale protects both people. It shows that money changed hands and that the car is no longer the seller's responsibility. Your state's motor vehicle department will likely require it to transfer the title.
What if the buyer and seller do not sign on the same day?
The bill of sale should be signed by both parties on or very close to the sale date. If one person signs much later, it can raise questions about when the sale actually happened. Try to have both signatures on the same day or within a day or two.
Can I use a bill of sale if the car still has a loan on it?
A bill of sale can be part of the sale, but the lender must agree to release the title. The seller usually pays off the loan before closing, or the buyer agrees to pay it off. Contact the lender to find out the payoff amount and how the title will be released.
Is a handwritten bill of sale as valid as a typed one?
Yes, in most states. A handwritten bill of sale is legally valid as long as it includes all required information and both parties sign it. A typed version is easier to read and less likely to have disputes over what was written, but either format works.
What if I lose my copy of the signed bill of sale?
Ask the other party for another signed copy. If you cannot reach them, you may be able to get a copy from your state's motor vehicle department if the title transfer was recorded. Keep your copy in a safe place with other important documents.