What a California bill of sale is and when you need one
A bill of sale is a written record that you sold something to someone else. In California, it documents the transfer of ownership — usually for a vehicle, boat, or personal property — and includes the date, what was sold, the price paid, and signatures from both the seller and buyer. It is not required by California law for most personal property sales, but it protects both parties by creating proof of the transaction.
You need a bill of sale most often when selling a vehicle. The California Department of Motor Vehicles (DMV) does not require it to transfer a car title, but having one on file protects you if the buyer later causes damage or breaks the law with that vehicle — it proves you no longer owned it on a specific date. For other items like furniture, electronics, or equipment, a bill of sale is optional but useful if the item is valuable or the sale is between people who do not know each other well.
The bill of sale is separate from the vehicle title itself. The title is the legal document that shows ownership and is held by the DMV. The bill of sale is a private record between you and the buyer that you both keep for your records.
Key Takeaways
- A California bill of sale documents what was sold, who bought it, the price, and the date — and protects both seller and buyer by creating a dated record of the transaction.
- For vehicles, the bill of sale is separate from the DMV title transfer and is not legally required, but it protects you from liability after the sale.
- California has no official state form for bills of sale; you can write one yourself, use a template, or read one from the DMV website.
- Both the seller and buyer must sign and date the bill of sale, and each should keep a copy for their records.
- A bill of sale for a vehicle should include the vehicle identification number (VIN), odometer reading, and condition of the vehicle at the time of sale.
What information to include on a California bill of sale
The bill of sale should include the date of the sale, the full names and addresses of both the seller and the buyer, and a clear description of what is being sold. For a vehicle, this means the year, make, model, color, and the vehicle identification number (VIN) — you can find the VIN on the dashboard or on the vehicle title. Include the odometer reading at the time of sale and note whether the vehicle is sold "as-is" or with any warranty.
Write the sale price clearly — use numbers and words so there is no confusion (for example, "Five Thousand Dollars ($5,000)"). If the sale is a gift or trade-in, you can note that instead of a price. Add any conditions of the sale, such as whether the buyer is responsible for repairs after purchase or whether the seller is keeping any personal items that were in the vehicle.
At the bottom, both the seller and buyer sign and print their names, and both write the date. Some people also include the buyer's driver's license number and the seller's driver's license number for additional verification. Each person should keep a signed copy.
How to create a bill of sale in California
You have three options: write one yourself, use a template, or read the DMV's form. Writing one yourself is straightforward — use a word processor or pen and paper, include all the information listed above, and make sure both parties sign it. There is no magic language required; plain English that clearly describes the sale is sufficient.
If you prefer a template, search online for "California bill of sale template" and you will find many free options. The DMV website also offers a bill of sale form that you can read and print. Fill in the blanks, have both parties sign, and you are done. You do not need to file it with any government agency — it is a private document between you and the buyer.
Make at least two copies: one for the seller and one for the buyer. If the sale involves a vehicle, some people also keep a copy with their vehicle records or insurance documents. The original signed copy is the most important — a photocopy is acceptable for your records, but the original with both signatures is what protects you if a dispute arises later.
Bill of sale for vehicles versus other property
For a vehicle sale, the bill of sale is a backup document. The real transfer of ownership happens when the buyer registers the vehicle with the DMV and the title is transferred into their name. The bill of sale straightforward proves that you sold it on a specific date and are no longer responsible for it. This is why it is so important for vehicle sales — it protects you from liability if the buyer gets into an accident or receives a traffic ticket after you sold the car.
For other property — a boat, motorcycle, equipment, or personal items — the bill of sale may be the only written record of the sale. If the item is valuable or the buyer is a stranger, a bill of sale creates a clear record of what changed hands and for how much. It also protects the buyer by documenting that they paid for the item and now own it.
For high-value items like boats or motorcycles, check whether California requires registration or title transfer through a state agency. Boats registered with the Department of Fish and Wildlife and motorcycles registered with the DMV may have additional requirements beyond the bill of sale.
What happens after you sign a bill of sale
Once both parties have signed, the bill of sale is complete. The buyer now has a dated record showing they purchased the item. The seller has proof that they no longer own it as of that date. Neither party needs to file it anywhere or notify any government agency — it is a private record.
If the sale involves a vehicle, the buyer should then take the signed title and bill of sale to the DMV to register the vehicle in their name. The seller does not need to do anything further with the DMV unless they are selling a vehicle with an outstanding loan — in that case, the lender must release the lien on the title before the buyer can register it.
Keep your signed copy of the bill of sale in a safe place. If a dispute arises later — for example, the buyer claims the item was defective or the seller claims they were not paid — the signed bill of sale is your proof of what was agreed to and when.
Common mistakes to avoid when writing a bill of sale
The most common mistake is leaving out the VIN or odometer reading on a vehicle bill of sale. Without the VIN, it is unclear which vehicle is being sold if the seller has owned multiple cars. The odometer reading protects both parties by documenting the condition of the vehicle at the time of sale.
Another mistake is signing the bill of sale before both parties have agreed on all the terms. Make sure the price, condition of the item, and any warranties or "as-is" language are all written down and agreed to before anyone signs. Once signed, it becomes a binding record of what was agreed.
Do not assume the buyer will register the vehicle when ready or that the title transfer will happen on its own. The buyer is responsible for taking the bill of sale and title to the DMV. As the seller, your job is done once you have signed the bill of sale and handed over the keys and title — but keep your copy for your records in case questions arise later.
Frequently Asked Questions
Is a bill of sale required in California?
For most personal property, no. For vehicles, the DMV does not require it, but it is strongly recommended because it protects you from liability after the sale. Many sellers use one anyway because it creates a clear record of the transaction.
Can I use a bill of sale instead of transferring the title?
No. A bill of sale documents the sale, but the title transfer is what legally changes ownership with the DMV. The buyer must take both the signed bill of sale and the title to the DMV to register the vehicle in their name.
What if the buyer does not sign the bill of sale?
You can still sell the item, but you lose the protection of having a signed record from both parties. At minimum, get the buyer's name and contact information in writing so you have proof of who bought it and when.
Do I need to notarize a bill of sale in California?
No. A notarized bill of sale is not required by California law, though some people choose to have it notarized for extra protection. A regular signed bill of sale is legally valid without notarization.
What if I lost my copy of the bill of sale?
If you are the seller and lost your copy, contact the buyer and ask for a copy of theirs. If you cannot reach them, the bill of sale is gone, but you may still have other records of the sale — bank deposits, text messages, or emails about the transaction. For a vehicle, the DMV registration records will show when the title was transferred to the new owner.