A bill of sale is a written record that documents the transfer of a car from one owner to another, signed by both parties
A bill of sale is a legal document that proves you bought or sold a vehicle. It records who owned the car, who owns it now, when the transfer happened, and how much was paid. Both the seller and buyer sign it. The document protects both parties by creating a paper trail if questions arise later about ownership, price, or condition.
You do not need a bill of sale to register a car with your state's motor vehicle department, but most states require one or accept it as proof of ownership when you transfer the title. Some states make it mandatory. Even where it is optional, having one is practical: it settles disputes about who agreed to what, protects you if the car has problems after the sale, and shows the IRS or your insurance company that a legitimate transaction took place.
A bill of sale can be as straightforward as a handwritten note on notebook paper, or you can use a template. What matters is that it contains the right information, is signed and dated by both parties, and is kept in a safe place.
Key Takeaways
- A bill of sale documents the sale of a car and is signed by both buyer and seller, creating proof of the transaction.
- Most states do not require a bill of sale but will accept one as proof of ownership when you register the vehicle.
- The document should include the vehicle identification number (VIN), the sale price, the date of sale, and the printed names and signatures of both parties.
- You can write a bill of sale by hand or use a template, and it should be kept with your vehicle records or title documents.
What information must go in a bill of sale
A bill of sale should contain the seller's full name, address, and signature; the buyer's full name, address, and signature; the vehicle's year, make, model, and color; the vehicle identification number (VIN); the odometer reading on the date of sale; the sale price; and the date of the transaction. Some templates also ask for the condition of the car (for example, "as-is" or with known defects listed) and whether any liens or loans are still attached to the vehicle.
The VIN is the most important detail. It is a 17-character code stamped on the driver's side dashboard and listed on the title. Including it prevents confusion if either party later owns another vehicle of the same make and model. The odometer reading protects the buyer by documenting the mileage at the time of sale, which matters for warranty claims or if the car is later found to have rolled back miles.
If the car is sold "as-is" — meaning the buyer accepts it in its current condition with no warranty from the seller — that should be stated clearly. If the seller knows of specific problems (a dent, a transmission issue, worn brakes), listing them protects the seller from later claims that the problem was hidden.
Where to find a bill of sale template
Your state's motor vehicle department website often provides a free template or sample bill of sale. Search "[your state] bill of sale" or "[your state] motor vehicle department" to find the official version. Some states have a specific form; others straightforward show an example of what should be included.
If your state does not provide a template, you can find general templates through legal document websites, your bank (if you financed the car through them), or your insurance company. Many of these are free. The template should match your state's rules — for example, some states require the bill of sale to be notarized, while others do not.
You can also write one from scratch. Use a straightforward format: list the seller's information at the top, the buyer's information below, the vehicle details in the middle, the sale price and date near the bottom, and signature lines for both parties at the end. Handwritten bills of sale are legally valid in all states as long as both parties sign and date it.
How to fill out a bill of sale correctly
Print or write the template clearly so all information is legible. Fill in the seller's full legal name (the name on the title), the seller's address, the buyer's full legal name, and the buyer's address. Write out the vehicle year, make, model, and color exactly as they appear on the title. Copy the VIN digit by digit to avoid errors.
Write the odometer reading as it appears on the dashboard on the day of sale. Write the sale price as a number and also spell it out in words (for example, "Five Thousand Dollars ($5,000)") to prevent later disputes about what was agreed. Write the date in a clear format such as "January 15, 2024."
Both the seller and buyer should sign and print their names on the signature lines. If either party is uncomfortable signing, do not proceed — a bill of sale signed under pressure or without full consent is not valid. Some states require the signatures to be notarized; check your state's motor vehicle website to confirm.
State-specific rules for bills of sale
Most states do not legally require a bill of sale, but some do. A few states — including Georgia, Illinois, Kentucky, and Missouri — require one or a similar document to register a vehicle. Other states make it optional but strongly recommend it. A small number of states require the bill of sale to be notarized, meaning a notary public must witness the signatures.
Some states have specific forms that must be used instead of a generic template. For example, California has a specific "Notice of Transfer and Release of Liability" form that serves a similar purpose. Texas allows a straightforward bill of sale but also accepts the back of the title as proof of sale. Check your state's motor vehicle department website or call their customer service line to learn what your state requires.
If you are buying or selling a car across state lines, use the bill of sale template from the state where the car will be registered, not the state where the sale took place. The registration state's rules are what matter for the transfer to be valid.
What happens after both parties sign
Keep the original signed bill of sale in a safe place — a file folder, a safe, or a safe deposit box. Make a copy for your records. If you are the buyer, keep it with your title documents and insurance papers. If you are the seller, keep it for at least three to five years in case questions arise about the sale.
The buyer should take the bill of sale to the motor vehicle department when registering the car in their name. The seller should keep a copy to prove they no longer own the vehicle, which protects them if the car is later involved in an accident or crime. Some states allow the seller to file a "release of liability" form at the same time to formally notify the state that they are no longer responsible for the vehicle.
If either party loses the original bill of sale, a copy is usually acceptable for registration purposes, but contact your state's motor vehicle department to confirm. Do not throw away the document after registration — keep it with your vehicle records for the life of your ownership.
Common mistakes to avoid when writing a bill of sale
Do not leave blanks. Fill in every field, even if you write "not applicable" or "unknown." Blank spaces can be filled in later by someone else, which creates legal risk. Do not use nicknames or shortened names — use the full legal name as it appears on the driver's license and title. Do not estimate the odometer reading; write the exact number shown on the dashboard.
Do not sign the bill of sale before both parties have read it and agreed to every detail. Do not use white-out or heavy crossing-out; if you make a mistake, start over or clearly initial and date any correction. Do not assume a bill of sale from another state will work in your state — check your state's requirements first.
Do not forget to date the document. The date is the legal proof of when ownership transferred. Do not keep only a photo or scan of the bill of sale if the original exists — keep the original signed copy in a find location. If you are the seller, do not hand over the keys or the title until the bill of sale is signed by both parties.
Frequently Asked Questions
Do I need a bill of sale if I am buying a car from a private person?
Most states do not legally require one, but it is strongly recommended. A bill of sale protects you by documenting the price you paid, the condition of the car, and the date of purchase. It also protects the seller by proving they transferred ownership. Even if your state does not require it, your insurance company or the motor vehicle department may ask for one when you register the car.
Can I use the same bill of sale template for any state?
A generic template will work in most states, but some states have specific forms or requirements. A few states require notarization; others require specific language about liens or odometer readings. Before you use a template, check your state's motor vehicle department website to confirm it meets your state's rules. Using your state's official template, if one exists, is the safest choice.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A bill of sale signed by both parties is your proof of ownership and protects you legally. If the seller refuses to sign, it signals a potential problem — they may have a lien on the car, owe money on it, or be selling it without the right to do so. Walk away from the deal until the seller is willing to sign.
Is a handwritten bill of sale as valid as a printed one?
Yes, in all states. A handwritten bill of sale is legally valid as long as it contains all required information, is signed and dated by both parties, and is legible. Many people use handwritten bills of sale for private car sales. A printed template is not required, though it can be clearer and less prone to misunderstanding.
Should I have the bill of sale notarized?
Only if your state requires it. Most states do not. Notarization adds a small cost but provides extra legal weight by having a notary public witness the signatures. If your state does not require it but you want extra protection, notarization is optional and available at banks, UPS stores, and notary services for a small fee.