What a Colorado bill of sale is and when you need one
A bill of sale is a written record that one person sold something to another person. In Colorado, it documents the transfer of ownership — usually for a vehicle, boat, or piece of equipment — and includes the sale price, the date, descriptions of both the buyer and seller, and a description of what was sold. The document protects both sides: the seller has proof they no longer own the item, and the buyer has proof of ownership.
Colorado does not legally require a bill of sale for most private sales, but the Colorado Department of Revenue strongly recommends one. If you sell a vehicle and do not have a bill of sale, the buyer may have trouble registering it with the state, and you may remain liable if the buyer uses the vehicle in a crime or gets into an accident. For boats and off-highway vehicles, Colorado law does require a bill of sale before the buyer can register the item.
You need a bill of sale whenever you sell something of significant value to someone else and want a paper trail. Even if the law does not require it, having one protects you both.
Key Takeaways
- A bill of sale is a written record of a sale that includes the seller's and buyer's names, the item description, the sale price, and the date of the transaction.
- Colorado does not legally require a bill of sale for vehicle sales between private parties, but the state recommends one to protect both buyer and seller.
- Boats and off-highway vehicles do require a bill of sale in Colorado before the buyer can register them with the state.
- You can write a bill of sale yourself using a straightforward template or form — there is no official state form, and you do not need a lawyer or notary.
- Both the buyer and seller should sign and date the bill of sale, and each should keep a copy for their records.
What information to include on a Colorado bill of sale
A bill of sale must include the names and addresses of both the seller and the buyer. Use the full legal names as they appear on identification. If either party is a business, use the business name and the name of the person signing on behalf of the business.
Next, describe the item being sold in enough detail that someone reading the document years later could identify it. For a vehicle, include the year, make, model, color, and vehicle identification number (VIN). For a boat, include the hull identification number (HIN), length, and year. For equipment or other items, describe the condition and any serial numbers or identifying marks. Do not leave this section vague.
Write the sale price in both numbers and words — for example, "One Thousand Five Hundred Dollars ($1,500.00)". Include the date of the sale. If any portion of the price was paid in trade (such as trading in an old vehicle), describe that trade-in and its value. Finally, add a line for both parties to sign and print their names, and include the date each person signed.
How to write a bill of sale yourself
Colorado has no official state bill of sale form. You can write one yourself on plain paper, use a template from the Colorado Department of Revenue website, or read a template from a legal document service. The document does not need to be fancy — a handwritten bill of sale is legally valid as long as it includes all the required information and both parties sign it.
Start with a heading that says "Bill of Sale" at the top. Below that, write "Seller:" followed by the seller's full name and address. Write "Buyer:" followed by the buyer's full name and address. Then add a section describing the item — "Description of Item Sold:" — and list the details. Add a line for the sale price, the date of sale, and any trade-in information.
At the bottom, leave space for signatures. Write "Seller's Signature:" and "Date:" on one line, and "Buyer's Signature:" and "Date:" on the next. Both parties must sign and date the document in front of each other or have their signatures witnessed. Print the document in duplicate so each party has an original signed copy.
Whether you need a notary or witness
Colorado does not require a bill of sale to be notarized. A notary public can notarize one if you want an extra layer of proof that the signatures are genuine, but it is not necessary for the document to be valid. Many people skip notarization for private sales because it adds cost and time.
You do not need a witness either, though having one present when both parties sign can be helpful if there is ever a dispute about whether the sale actually happened. If you do have a witness, ask them to print their name and sign the document as well.
If you are selling a boat or off-highway vehicle in Colorado, check with your local county clerk or the Colorado Parks and Wildlife office to see whether they require notarization before they will register the item. Some counties have their own rules.
What happens after both parties sign
Once both the buyer and seller have signed the bill of sale, each should keep a copy. The buyer will need their copy when they register the vehicle, boat, or equipment with the Colorado Department of Revenue or the appropriate state agency. The seller should keep their copy as proof that they no longer own the item.
For vehicles, the buyer will take the bill of sale to a Colorado Division of Motor Vehicles office along with the title (if available), proof of insurance, and payment for registration and title transfer fees. The DMV will issue a new title in the buyer's name. If the seller does not have the title — for example, if the vehicle is very old or was purchased out of state — the bill of sale becomes even more important, because it is the main proof of ownership transfer.
For boats and off-highway vehicles, the buyer takes the bill of sale to the county clerk's office or Parks and Wildlife office to register the item. Without a bill of sale, the registration will be delayed or denied.
Common mistakes to avoid when writing a bill of sale
The most common mistake is leaving out the VIN or other identifying number. If the document does not clearly identify what was sold, it may not hold up if there is a dispute. Take time to copy the VIN or HIN directly from the item itself, not from memory or from a previous document.
Another mistake is writing the price in words only or numbers only. Always write it both ways to avoid confusion. Do not leave the price blank or write "cash" without a dollar amount — the document needs a specific figure.
Do not sign the bill of sale unless both parties are present and agree to the terms. If you sign it before the buyer arrives or after they leave, it may not be legally valid. Both parties should sign on the same day, ideally in front of each other.
Finally, do not assume the buyer will register the item right away. As the seller, you remain liable for the vehicle or equipment until the buyer completes the registration and the title transfers to their name. Keep your copy of the bill of sale for at least a few years in case questions come up later.
Frequently Asked Questions
Can I sell a vehicle in Colorado without a bill of sale?
Technically yes — Colorado does not legally require one for private vehicle sales. However, the buyer will have difficulty registering the vehicle without it, and you remain liable for the vehicle until the title is transferred. A bill of sale protects both of you and is worth the few minutes it takes to write.
What if I lost the title to my vehicle?
A bill of sale becomes your main proof of ownership transfer. The buyer can take the bill of sale to the Colorado DMV and request a duplicate title. The DMV will issue a new title in the buyer's name based on the bill of sale and registration information. Bring proof of identity and payment for the duplicate title fee.
Do I need to report the sale to the Colorado Department of Revenue?
No. The buyer reports the sale when they register the vehicle or equipment. As the seller, you do not need to file anything with the state. However, keep your copy of the bill of sale for your records in case you are contacted about the vehicle later.
Can I use a bill of sale for something other than a vehicle or boat?
Yes. A bill of sale works for any item of value — equipment, tools, furniture, electronics, or anything else. Colorado does not require one for these items, but having a written record protects both buyer and seller if there is ever a dispute about the sale.
What if the buyer and I disagree on the sale price after we sign?
The bill of sale is a binding record of what you both agreed to on the date you signed it. If there is a dispute, the bill of sale is the evidence of the agreed price. This is why it is important to make sure the price is correct and that both parties understand and agree to it before signing.