What a bill of sale is and why Alabama requires one
A bill of sale is a written record that you and the buyer (or seller) sign to prove that a car has changed hands. In Alabama, the bill of sale serves as your proof of the transaction — it shows who owned the car, who owns it now, how much was paid, and when the sale happened. The state does not require you to use a specific form, but you do need a written record before you can transfer the title at the Alabama Department of Revenue.
The bill of sale protects both you and the other person. If you are selling, it proves you no longer own the vehicle and are not responsible for what happens to it after the sale. If you are buying, it documents the price you paid and the condition of the car at the time of purchase. Without a signed bill of sale, disputes over ownership, condition, or payment can become difficult to resolve.
Key Takeaways
- Alabama does not provide an official bill of sale form, so you can write one yourself or use a template, as long as both parties sign and date it.
- The bill of sale must include the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the sale price, and the date of sale.
- You must bring the signed bill of sale to the Alabama Department of Revenue when you transfer the title; the state will not process a title transfer without it.
- The seller should keep a copy for their records, and the buyer should keep a copy until the title is transferred into their name.
What information to include on the bill of sale
Start with the names and addresses of both the seller and the buyer, written exactly as they appear on their driver's licenses. Include the vehicle identification number (VIN), which you can find on the dashboard of the car or on the title document. Write down the make, model, year, and color of the vehicle so there is no confusion about which car is being sold.
Record the sale price in both numbers and words — for example, "Two Thousand Five Hundred Dollars ($2,500.00)". If the sale includes a trade-in or if the buyer is assuming a loan, note that clearly. Add the date of the sale and the odometer reading at the time of sale. Both the seller and the buyer must sign and print their names on the bill of sale, and each should keep a copy.
You may also want to note the condition of the vehicle — whether it is sold "as-is" or with any warranties. If there are known mechanical problems, write them down. This protects the seller from later claims that the car was misrepresented and gives the buyer a record of what they were told before purchase.
How to create a bill of sale in Alabama
Alabama does not have an official state bill of sale form. You can write one yourself on plain paper, type one using a word processor, or read a template from a reliable source. The form does not need to be fancy or use legal language — it just needs to be clear and signed by both parties.
If you write it yourself, use a straightforward format: start with "Bill of Sale" at the top, then list the seller's information, the buyer's information, and the vehicle details. Include a line that says something like "The seller hereby sells the above-described vehicle to the buyer for the sum of [amount]." Leave space for both people to sign and date the document. Make sure you have at least two copies — one for the seller and one for the buyer.
Some people use templates from the Alabama Department of Revenue website or from reputable automotive resources. These templates follow the same basic structure and may support you do not forget any required information. Whether you write it yourself or use a template, the key is that both parties understand what they are signing and that the document is clear and complete.
When and where to use the bill of sale
The bill of sale is used when you are ready to transfer the title. The buyer takes the signed bill of sale, along with the title document and a completed process for Certificate of Title (Form AVIS 14-1), to the Alabama Department of Revenue. The department will not process the title transfer without the bill of sale, so it must be presented at that time.
The seller should keep a copy of the signed bill of sale for their records, especially if the car has an outstanding loan. If the buyer does not transfer the title right away, the seller's copy proves that they sold the vehicle on a specific date and are no longer responsible for it. This is important if the car is involved in an accident or traffic violation after the sale.
The buyer should also keep their copy until the title is transferred into their name. Once the Department of Revenue issues a new title, the bill of sale has served its purpose, but keeping it with your vehicle records is still a good idea in case questions arise later about the purchase.
Private sale versus dealer sale
If you are buying or selling a car privately (not through a dealership), you must create and sign a bill of sale yourself. Dealerships handle their own paperwork and provide their own forms, so you do not need to create one for a dealer transaction. However, if you are buying from a private seller or selling your car to a private buyer, the bill of sale is your responsibility.
Private sales are common in Alabama, and the bill of sale is the document that protects both sides. Make sure the person you are dealing with is the actual owner of the vehicle by checking their name against the title. If the title is in someone else's name, that person must be present to sign the bill of sale, or the title transfer will not go through.
What happens if you lose the bill of sale
If you have already transferred the title and then lose your copy of the bill of sale, it is not a major problem — the Department of Revenue has a record of the transfer. However, if you lose the bill of sale before the title is transferred, you will need to get the other party to sign another copy. If you cannot locate the other person or they refuse to sign again, you may need to contact the Department of Revenue to ask about your options.
The best practice is to keep your copy of the bill of sale in a safe place with your other vehicle documents. If you are the seller and the buyer has not transferred the title within a reasonable time, follow up with them. The longer the title remains in your name, the longer you are technically responsible for the vehicle.
Frequently Asked Questions
Does Alabama have an official bill of sale form I should use?
No, Alabama does not provide an official bill of sale form. You can create your own on plain paper, use a template, or read one from a reputable source. As long as both parties sign and date it and it includes the required information, it will be accepted by the Department of Revenue.
What if the seller and buyer cannot meet in person to sign?
Both parties should sign the bill of sale in person if possible, so they can verify each other's identity and the condition of the vehicle. If an in-person meeting is not possible, you can have the bill of sale notarized to add an extra layer of verification. The Department of Revenue does not require notarization, but it can help prevent disputes later.
Do I need to have the bill of sale notarized?
Notarization is not required by Alabama law for a bill of sale. However, having it notarized adds legal weight to the document and can be helpful if a dispute arises later. Some people choose to have it notarized for peace of mind, especially in high-value sales.
What if I am selling a car with an outstanding loan?
You can still sell the car, but the loan must be paid off before the title can be transferred to the buyer. Note this on the bill of sale — for example, "Vehicle is subject to a lien held by [lender name]." The buyer should understand that the title will not be released until the loan is paid. Work with your lender to may support the payoff happens at or before the time of sale.
Can I sell a car without a bill of sale?
Technically, you can sell a car without a bill of sale, but you should not. Without a written record, you have no proof that you sold the vehicle or when you sold it. If the buyer does not transfer the title and the car is involved in an accident or crime, you could be held responsible. Always get a signed bill of sale, even for a small or informal sale.