A bill of sale is a written record that proves who owned a car and who owns it now
A bill of sale is a document that shows a car has changed hands from one owner to another. It records the seller's name, the buyer's name, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. When you buy or sell a car privately — not through a dealership — a bill of sale creates a paper trail that protects both parties and is often required by your state's motor vehicle department to transfer the title.
The bill of sale is separate from the title, which is the legal proof of ownership. The title stays with the vehicle and must be transferred to the new owner's name at the DMV or your state's equivalent agency. The bill of sale is the document that shows the transaction happened and supports that transfer request.
Most states do not require a specific form, which means you can write one yourself on plain paper, use a template, or buy a pre-printed form from an office supply store. What matters is that the document contains the essential information and is signed by both the buyer and seller.
Key Takeaways
- A bill of sale records the seller, buyer, vehicle details, price, and date — and is signed by both parties.
- You will need a bill of sale to transfer the title at your state's DMV or motor vehicle agency.
- Most states do not require a specific form; you can create one yourself, use a template, or buy a pre-printed version.
- A bill of sale protects both buyer and seller by creating a record of the transaction and the agreed price.
- Some states require the bill of sale to be notarized; check your state's requirements before signing.
What information must be included on a bill of sale
The bill of sale should include the seller's full name and address, the buyer's full name and address, and the date of the sale. It must also contain the vehicle's year, make, model, color, and Vehicle Identification Number (VIN), which you can find on the driver's side dashboard or on the title itself.
The sale price should be listed, even if the car is being given as a gift — in that case, write "gift" or "$0" depending on what your state's DMV requires. Some states use the sale price to calculate transfer taxes or fees, so accuracy matters. Include the odometer reading at the time of sale, which is a legal requirement in most states to prevent odometer fraud.
Both the seller and buyer must sign and date the document. Some states require the signatures to be notarized by a notary public, which adds an official stamp of verification. Check your state's DMV website to see whether notarization is mandatory where you live.
When you need a bill of sale
You need a bill of sale whenever you buy or sell a car from a private party. If you are buying from a dealership, the dealership typically handles the paperwork and provides their own bill of sale or sales agreement. Private sales — between individuals — are where you must create or obtain a bill of sale yourself.
You will present the bill of sale to your state's DMV or motor vehicle department when you explore to transfer the title into your name as the new owner. The seller may also need a copy for their records, especially if they are trading in the car or need proof that they no longer own it.
If a dispute arises later — for example, if the seller claims the car was never actually sold, or if the buyer claims a mechanical problem was hidden — the bill of sale serves as evidence of the transaction and the agreed-upon terms.
How to create a bill of sale
Start with a blank piece of paper or a template. At the top, write "Bill of Sale" or "Vehicle Bill of Sale." Then fill in the seller's name and address, the buyer's name and address, and the date of the transaction.
Add a section for vehicle information: year, make, model, color, VIN, and license plate number. Write the sale price clearly. Include a line for the odometer reading. Some templates also include a section where the seller confirms the vehicle is free of liens (meaning no bank or lender has a claim on it), which is important for the buyer to know.
Leave space for both parties to sign and print their names. If your state requires notarization, you will need to take the signed document to a notary public, who will witness the signatures and add their seal. Many banks, libraries, and UPS stores offer notary services for a small fee.
State-specific requirements and variations
Most states do not mandate a specific bill of sale form, but some do provide an official template on their DMV website. A few states — including Maryland, Michigan, and South Carolina — have specific requirements about what must appear on the document or how it must be formatted.
Notarization requirements vary by state. Some states require it; others do not. A handful of states require the bill of sale to include a statement from the seller that the vehicle has no outstanding liens, or they may require a separate lien release form from any lender. Check your state's DMV website before you sign anything, because requirements differ and using the wrong form can delay your title transfer.
A few states also require the bill of sale to be filed with the state, not just presented at the DMV. This is rare, but it is worth confirming with your local motor vehicle agency.
Why both the buyer and seller should keep a copy
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, parking violation, or other incident while the buyer is still transferring the title. Without proof of sale, the seller could be held liable for something that happened after they sold it.
The buyer should keep a copy as proof of purchase and to support their DMV process for title transfer. If there is ever a dispute about the terms of the sale — the price, the condition of the car, or whether certain repairs were promised — the bill of sale is the written record of what was agreed.
Both parties should also photograph or scan the signed bill of sale before submitting it to the DMV, in case the original is lost or damaged in transit.
Common mistakes to avoid when writing a bill of sale
Do not leave blanks or use vague language. Write out the full VIN, not a partial one. Use the exact legal names of both parties as they appear on their driver's licenses, not nicknames or informal versions. If the buyer or seller has recently changed their name, use the name that matches their current ID.
Do not forget the odometer reading, which is legally required in most states. Do not assume the sale price can be left blank or written as "as is" — your DMV needs a specific dollar amount or a clear statement that it is a gift. Do not sign the document in front of a witness if your state requires notarization; a notary's seal is not the same as a witness signature.
Do not submit the original bill of sale to the DMV without keeping a copy for yourself. Do not assume a bill of sale from one state will work in another; requirements can differ, so check your state's rules.
Frequently Asked Questions
Can I write a bill of sale on any piece of paper, or does it have to be a specific form?
Most states allow you to write a bill of sale on plain paper as long as it includes all required information: seller name and address, buyer name and address, vehicle details, VIN, sale price, date, and both signatures. A few states have preferred or required forms available on their DMV website, so check your state first. Using an official form when one exists is safer and faster.
What if the car has a lien on it from a bank or loan?
The lender must release the lien before the title can be transferred to the new owner. The seller is responsible for paying off the loan and obtaining a lien release document from the lender. The bill of sale should note whether the vehicle has a lien, and the lien release must be presented to the DMV along with the bill of sale and title when the buyer applies for transfer.
Do I need to get the bill of sale notarized?
It depends on your state. Some states require notarization; others do not. Check your state's DMV website or call them directly to confirm. If notarization is required and you do not do it, the DMV may reject your title transfer process, delaying the process.
What should I do if I lose the bill of sale after I have already signed it?
If you kept a copy or photograph, use that. If you did not, contact the other party and ask them to provide a copy or sign a duplicate. If you cannot reach them, contact your state's DMV to ask whether they can accept a notarized statement from you describing the sale, though this is not ideal and may delay your title transfer.
Is a bill of sale the same as a title?
No. A bill of sale is a record of the transaction; a title is the legal proof of ownership. The title must be transferred at the DMV to reflect the new owner's name. The bill of sale supports that transfer by showing the sale occurred and on what date.