A bill of sale for a gifted car is a written record that documents the transfer of ownership from you to the recipient, even though no money changes hands
When you give a car to someone as a gift, you still need to transfer the title at your state's DMV or equivalent agency. A bill of sale is the document that proves the transfer happened and shows the recipient's right to register the vehicle in their name. Without it, the DMV will not process the title transfer, and the recipient cannot legally drive the car or sell it later.
The bill of sale protects both you and the recipient. For you, it creates a record that you no longer own the vehicle — important if the car is involved in an accident or traffic violation after the gift date. For the recipient, it proves they received the car legitimately and can present it to the DMV as proof of ownership transfer.
You do not need a lawyer to create a bill of sale for a gift. Most states provide a standard form, or you can write one yourself using basic information about the car and the date of transfer. The key is that both you and the recipient sign and date the document, and you keep copies for your records.
Key Takeaways
- A bill of sale for a gifted car documents the transfer of ownership and is required by most states before the recipient can register the vehicle in their name.
- The document should include the vehicle identification number (VIN), the date of the gift, the names and signatures of both the giver and recipient, and a statement that the car is being transferred as a gift with no payment.
- Your state's DMV website usually provides a free bill of sale form, or you can create one yourself using a template and basic car information.
- Both you and the recipient must sign the bill of sale in front of a notary public in some states, while others accept signatures without notarization.
- Keep a copy of the signed bill of sale for your records and provide the original or a certified copy to the recipient for their DMV registration.
What information to include on the bill of sale
The bill of sale must contain specific details about the car and the people involved in the transfer. Start with the vehicle identification number (VIN), which appears on the dashboard near the windshield and on your title document. Include the year, make, model, and color of the car, along with the current odometer reading. These details may support there is no confusion about which vehicle is being transferred.
Next, write the full legal names, addresses, and phone numbers of both the giver (you) and the recipient. Include the date the gift is being made — this is the date both parties sign the document, not a future date. Add a clear statement that the vehicle is being transferred as a gift with no monetary payment. Some states require you to write "gift" or "no consideration" in a specific section of the form.
Sign and date the document in the spaces provided. The recipient should also sign and date it. If your state requires notarization, both signatures must be witnessed and certified by a notary public. Check your state's DMV website to confirm whether notarization is mandatory or optional.
Where to find your state's bill of sale form
Most states provide an official bill of sale form on their DMV website. Search "[your state] DMV bill of sale" or "[your state] vehicle gift form" to find the correct document. Some states call it a "gift affidavit" or "transfer of ownership form." read the form, print it, and fill in the required information by hand or on your computer before printing.
If your state does not provide an official form, you can create your own using a template from a reputable source. The document does not need to be fancy — a straightforward letter that includes all the required information and is signed by both parties will work. However, using your state's official form reduces the chance of missing required details or language.
Some states allow you to complete the bill of sale online through the DMV portal, while others require a printed and signed original. Check your state's specific requirements before you begin, because submitting the wrong format can delay the title transfer.
How to fill out the bill of sale correctly
Print the form or open it on your computer and begin with the vehicle section. Enter the VIN exactly as it appears on your title — do not abbreviate or guess. Fill in the year, make, model, and color. Write the current odometer reading in miles or kilometers, depending on what your form requests. If the car has any outstanding liens or loans against it, note that in the appropriate section, because the recipient cannot register the car until those are paid off.
In the ownership transfer section, write your full legal name and current address. Write the recipient's full legal name and address. Some forms ask for driver's license numbers or phone numbers — fill in whatever is requested. In the consideration section, write "gift" or "no monetary consideration" to make clear that no money is being exchanged.
Leave the signature lines blank until both you and the recipient are present. Sign your name in the giver's section and print your name below your signature. Have the recipient sign and print their name in the recipient's section. Write the date both of you are signing — this should be the same date for both signatures. If notarization is required, take the signed form to a notary public before giving it to the recipient.
Notarization requirements by state
Notarization rules vary significantly by state. Some states require both the giver and recipient to have their signatures notarized before the bill of sale is valid. Other states accept signatures without notarization as long as both parties sign in front of each other. A few states do not require notarization but recommend it for added protection.
To find out whether your state requires notarization, check the DMV website or call the DMV directly. If notarization is required, you and the recipient must visit a notary public together with a valid photo ID. The notary will verify your identities, watch you sign the bill of sale, and then stamp and sign the document themselves. Notary services are usually available at banks, UPS stores, and some law offices, often for a small fee.
If you and the recipient live in different states or cannot meet in person, some states allow remote notarization through video. Check whether your state offers this option before assuming you must meet face-to-face.
What happens after you sign the bill of sale
Once both you and the recipient have signed the bill of sale, make at least two copies — one for you and one for the recipient. Keep your copy in a safe place as proof that you transferred the vehicle. Give the original or a certified copy to the recipient, who will need it to register the car at the DMV.
The recipient should take the bill of sale, your original title, and their own identification to the DMV within the timeframe your state allows — typically 10 to 30 days after the gift date. The DMV will process the title transfer and issue a new title in the recipient's name. Until that happens, the car is still registered to you, even though you no longer own it.
If the recipient does not transfer the title promptly and the car is involved in an accident or traffic violation, you could be held liable because your name is still on the registration. Encourage the recipient to complete the DMV transfer as soon as possible after receiving the bill of sale.
Common mistakes to avoid
Do not leave the bill of sale blank and sign it, hoping the recipient will fill it in later. Once you sign, the document is legally binding, and any changes made afterward could be questioned. Fill in all information while both parties are present and can verify accuracy.
Do not date the bill of sale before the actual date of transfer. The date must match when both parties actually sign. Backdating or postdating the document can create legal problems and may be viewed as fraud.
Do not forget to include the VIN or assume you can add it later. The VIN is the most important identifier for the vehicle, and the DMV will not process the transfer without it. Double-check that you have copied it correctly from your title or the car itself.
Do not skip notarization if your state requires it. Submitting an unnotarized bill of sale when notarization is mandatory will cause the DMV to reject the title transfer, and the recipient will have to resubmit with a properly notarized document.
Frequently Asked Questions
Do I need a bill of sale if I am giving a car to a family member?
Yes. The DMV requires a bill of sale or gift affidavit regardless of your relationship to the recipient. Family members are not exempt from the title transfer process. Without a bill of sale, the recipient cannot register the car in their name.
What if the car has a loan or lien on it?
You cannot gift a car that has an outstanding loan unless the recipient agrees to take over the payments or you pay off the loan first. The lender's lien must be removed from the title before the transfer is complete. Note the lien status on the bill of sale and explain how it will be handled.
Can I write the bill of sale by hand, or does it have to be typed?
Handwritten bills of sale are acceptable in most states as long as all required information is legible and both parties sign. Using your state's official form or a typed template is clearer and less likely to cause problems at the DMV, but handwriting is not a barrier to acceptance.
What if I lose my copy of the bill of sale after I sign it?
Contact the recipient and ask for a copy of their signed original. If neither of you has it, you can request a copy from the DMV once the title transfer is complete, though this may take time and involve a fee. Keep your copy in a safe place to avoid this situation.
Do both signatures have to be on the same page?
Check your state's form requirements. Most states allow signatures on the same page, but some forms have separate signature sections. As long as both signatures are on the same bill of sale document and dated the same day, the DMV will accept it.