A bill of sale for a car is a written record that you and the seller sign to prove ownership has changed hands
When you buy or sell a car, a bill of sale is a document that shows who owned the vehicle before, who owns it now, and the price paid. It is signed by both the seller and the buyer. The bill of sale is not the same as the title — the title is the legal proof of ownership that the state issues. The bill of sale is your record of the transaction itself, and it protects both you and the seller by documenting what happened and when.
A bill of sale matters because it creates a paper trail. If you buy a car and something goes wrong later — the seller claims you still owe money, or you discover the car was stolen — the bill of sale shows the date you took ownership and what you paid. If you sell a car, it protects you by proving you no longer own it, which matters if the new owner gets a ticket or is in an accident.
Key Takeaways
- A bill of sale is a signed document between buyer and seller that records the sale price, vehicle details, and the date ownership changed.
- You can create a bill of sale using a template from your state's motor vehicle department, or you can write one yourself as long as it includes the required information.
- Both the buyer and seller should keep a copy of the signed bill of sale, even though the title document is what the state recognizes as proof of ownership.
- Some states require the bill of sale to be notarized; check your state's motor vehicle website to see if yours does.
- A bill of sale protects you from liability after the sale — the seller cannot claim they still own the car, and the buyer cannot later dispute the price or condition.
What information goes on a bill of sale
A bill of sale should include the names and addresses of both the buyer and the seller, the date of the sale, and the price paid. It should also include details about the car: the year, make, model, color, vehicle identification number (VIN), and the current odometer reading. Some people also note the condition of the car or whether any repairs are needed, though this is optional.
The document should state clearly that the seller is transferring ownership to the buyer. Both parties sign and date it. If the sale is being notarized, the notary public will also sign and stamp the document. Many states provide a template bill of sale on their motor vehicle department website — searching "[your state] bill of sale template" will usually find it. If your state does not provide one, you can use a general template or write one yourself, as long as it includes the key information.
When you need a bill of sale
You need a bill of sale whenever money or value changes hands for a car. This includes private sales between individuals, sales from a dealer, and even sales between family members. If you are buying a car from a private seller, you should create and sign a bill of sale before you hand over money. If you are selling a car, you should have the buyer sign one before you give them the keys.
If you buy a car from a dealership, the dealer usually provides their own bill of sale or sales contract, which serves the same purpose. Read it carefully to make sure it includes the price, the vehicle details, and any warranties or conditions of the sale. Do not skip this step even if the dealer seems trustworthy — the bill of sale is your protection, not theirs.
How a bill of sale connects to the title transfer
The bill of sale and the title are two different documents that work together. The bill of sale is your record of the transaction. The title is the state's official record of who owns the car. After you buy a car, you will use the bill of sale as one of the documents you submit to your state's motor vehicle department to transfer the title into your name. The department will then issue you a new title showing you as the owner.
The seller should also sign the back of the title or provide a separate document (sometimes called a power of attorney or assignment of title) that authorizes the transfer. The exact process varies by state, so check your state's motor vehicle website for the specific forms and steps. The bill of sale alone does not transfer the title — it is evidence that the sale happened, and you use it along with the signed title to complete the transfer with the state.
Whether your state requires notarization
Some states require the bill of sale to be notarized, meaning a notary public must witness both signatures and stamp the document. Other states do not require notarization but allow it. A few states do not mention notarization at all. Check your state's motor vehicle department website or call their customer service line to find out what your state requires.
If notarization is required, you can have the bill of sale notarized at a bank, a notary public's office, or sometimes at your local motor vehicle department. Notarization usually costs between $5 and $15 per signature. If your state does not require it, notarization is still optional — some people choose to do it anyway for extra protection, especially in high-value sales.
Protecting yourself as a buyer or seller
As a buyer, keep your signed copy of the bill of sale in a safe place along with your title and registration. If a problem arises later — for example, the seller claims the car was stolen or you discover a lien on the title — the bill of sale proves when you bought it and what you paid. It also protects you if the seller tries to claim you still owe money or if they are pursued for a debt related to the car.
As a seller, the bill of sale protects you by proving you no longer own the car. If the new owner gets a parking ticket, is in an accident, or commits a crime with the vehicle, the bill of sale shows that you transferred ownership on a specific date. Keep your copy and make sure the buyer completes the title transfer with the state promptly. If the title is not transferred within a reasonable time, contact your state's motor vehicle department to find out how to remove yourself from the registration.
What to do if you lose your bill of sale
If you have already transferred the title and lost your copy of the bill of sale, you can usually get a copy from the other party. If you cannot reach them, you can request a copy of your title from your state's motor vehicle department — the title itself serves as proof of ownership and is the official record. However, if you need to prove when you bought the car or what you paid, and you no longer have the bill of sale, you may have difficulty reconstructing that information.
If you are in the middle of a sale and lose the bill of sale before signing, straightforward create a new one. Use the same template or format, fill in the information again, and have both parties sign. There is no penalty for creating a new bill of sale as long as it accurately reflects the transaction.
Frequently Asked Questions
Can I write a bill of sale by hand, or does it have to be typed?
A handwritten bill of sale is legal in most states as long as it includes all the required information and is signed by both parties. Typed is cleaner and easier to read, but handwritten is acceptable. Make sure the handwriting is legible and both people sign in ink, not pencil.
What if the seller will not sign a bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a red flag — it suggests they may not actually own the car, or they are trying to hide something. A legitimate seller has no reason to refuse. Walk away from the deal.
Do I need a bill of sale if I am buying from a dealership?
Dealerships provide their own sales contract or bill of sale, which serves the same purpose. You do not need to create a separate one, but you should read the dealer's document carefully and keep a copy. It should include the vehicle details, the price, and any warranties or conditions.
Can I use a bill of sale to transfer a car to a family member?
Yes. Even if no money changes hands, you should create and sign a bill of sale to document the transfer. You can note the price as "gift" or "$0" if no payment is made. This protects both of you by creating a clear record of when ownership changed.
What happens if I sell a car and the buyer does not transfer the title?
If the buyer does not transfer the title into their name, you may still appear as the owner on your state's records. Contact your state's motor vehicle department to find out how to remove yourself from the registration. Some states allow you to file a form stating that you sold the vehicle and are no longer responsible for it. Keep your copy of the bill of sale as proof of the sale.