Alabama requires a bill of sale when you buy or sell a used car, and you can write one yourself on plain paper
Alabama law does not mandate a specific form for a bill of sale. You can write one by hand or type it, as long as it includes the required information and both the seller and buyer sign it. The state does not require notarization, though having a notary witness the signatures adds a layer of protection if questions arise later about who owned the car on a particular date.
The bill of sale serves as your proof of ownership transfer. When you take it to the Alabama Department of Revenue's Motor Vehicle Division along with your process for title, they use it to confirm that the previous owner sold you the vehicle. Without it, you cannot register the car in your name.
Key Takeaways
- Alabama does not provide an official bill of sale form, so you can create one yourself as long as it includes the seller's name and address, buyer's name and address, vehicle identification number (VIN), make and model, year, sale price, and date of sale.
- Both the seller and buyer must sign the bill of sale, and while notarization is not required by law, having a notary witness the signatures protects both parties if ownership is later disputed.
- You must bring the signed bill of sale to the Alabama Department of Revenue Motor Vehicle Division when you submit your process for a new title.
- The bill of sale should state the condition of the vehicle (as-is, with warranty, or with specific repairs completed) to prevent disputes after the sale.
What information must appear on an Alabama bill of sale
The bill of sale needs to identify both parties clearly. Write the seller's full name and current address, and the buyer's full name and current address. If either party is a business, use the legal business name and the address where the business operates.
Include the vehicle's complete identification number (VIN), which appears on the dashboard on the driver's side and on the title document. Also list the year, make, model, and body style (sedan, truck, SUV, etc.). Write the sale price in both numbers and words to prevent later claims of alteration. For example: "$5,000 (Five Thousand Dollars)."
Add the date the sale occurred. This date matters because it establishes when ownership transferred. If you are buying a used car and the seller still owes money to a lender, the bill of sale date helps the lender know when their lien ended.
State whether the car is sold as-is, with a warranty from the seller, or with specific repairs the seller agreed to complete before transfer. This prevents disputes about the vehicle's condition after you own it.
How to handle the odometer disclosure
Federal law requires the seller to disclose the vehicle's mileage on the bill of sale or on a separate odometer disclosure form. Write the current mileage reading and the date it was recorded. If the odometer does not work, the seller must state that fact in writing.
The seller must certify that the mileage is accurate to the best of their knowledge, or state if the mileage is unknown or if the odometer is broken. This disclosure protects you from buying a car with hidden high mileage and protects the seller from later claims that they misrepresented the mileage.
Signature requirements and notarization
Both the seller and buyer must sign and date the bill of sale. Print or type both names clearly above the signature lines so there is no confusion about who signed. If the seller is married and both spouses own the car, both should sign. If you are buying the car with another person and both names will go on the title, both of you should sign as buyers.
Notarization is not required by Alabama law, but it strengthens the document. A notary public verifies the identity of the people signing and witnesses their signatures. This creates an official record that the signatures are genuine, which matters if the seller later claims they did not sell the car or if a lender disputes when the lien ended. You can find notaries at most banks, credit unions, and UPS stores.
What to do with the bill of sale after signing
Keep the original signed bill of sale. Make at least one copy for your records before you submit it to the state. When you go to the Alabama Department of Revenue Motor Vehicle Division to register the car and get a new title, bring the original bill of sale along with your completed process for title (Form MVT-2), proof of insurance, and a valid photo ID.
The Motor Vehicle Division will keep the bill of sale with your title process. You will receive a copy of the new title in the mail within two to three weeks. The seller should also keep a copy for their records, in case questions arise about when they no longer owned the vehicle.
Common mistakes to avoid on an Alabama bill of sale
Do not leave blanks. Fill in every field, even if you have to write "unknown" for information you cannot find. Blank spaces can be filled in later by someone else, which opens the door to fraud. If the seller does not know the exact sale price, write "trade-in" or "cash" and the approximate amount rather than leaving it blank.
Do not use white-out or heavy crossing-out. If you make a mistake, start over. Alterations to a bill of sale can raise questions about whether the document was changed after both parties signed. Do not sign the bill of sale before all the information is filled in, and do not let the seller sign first and then hand it to you to complete — both of you should review the finished document before signing.
Do not assume the seller will handle the title transfer. The seller's job ends when they sign the bill of sale and hand over the keys. You are responsible for taking the bill of sale to the Motor Vehicle Division and getting the title changed to your name. If you do not do this within a reasonable time, the car remains registered to the seller, and you could face problems if the car is involved in an accident or traffic violation.
When you buy from a dealer instead of a private seller
If you buy from a licensed car dealer in Alabama, the dealer prepares the bill of sale and handles the title transfer for you as part of the sale. The dealer must still include all the required information and get your signature. You should still review it carefully before signing to make sure the price, mileage, and vehicle information are correct.
Dealers are required by law to disclose known defects and to provide you with a written warranty or a clear statement that the car is sold as-is. This information should appear on the bill of sale or on a separate disclosure form the dealer gives you at the time of sale. Keep these documents with your copy of the bill of sale.
Frequently Asked Questions
Can I write a bill of sale on any piece of paper?
Yes. Alabama does not require a specific form or format. You can write it by hand on notebook paper or type it on plain paper. What matters is that it includes all the required information (seller name and address, buyer name and address, VIN, year, make, model, sale price, date, and mileage) and that both parties sign it.
What if the seller will not sign the bill of sale?
Do not complete the purchase. Without a signed bill of sale, you have no proof that the seller transferred ownership to you. The Motor Vehicle Division will not issue a title in your name without it. If the seller refuses to sign, the sale cannot proceed legally.
Do I need the seller's signature notarized?
No, notarization is not required by Alabama law. However, it is a good idea because it creates an official record that the signatures are genuine. This protects both you and the seller if questions arise later about when ownership changed or whether the sale actually happened.
What happens if I lose the bill of sale after I buy the car?
Contact the Alabama Department of Revenue Motor Vehicle Division. They have a copy on file with your title process. You can request a certified copy of the bill of sale or other documents from your title file. There is usually a small fee for this service.
Can I sell the car to someone else without a bill of sale?
No. When you sell the car, you must provide the buyer with a signed bill of sale. You are now the seller, so you sign as the seller and the new buyer signs as the buyer. This is how ownership transfers legally in Alabama.