What a bill of sale is and why Colorado requires one
A bill of sale is a written record that you sold a car to someone else. It shows the date, the vehicle details, the price paid, and signatures from both the seller and buyer. In Colorado, a bill of sale is not legally required by the state to transfer ownership — the Colorado Division of Motor Vehicles does not demand one before issuing new registration — but it protects both you and the buyer by creating proof of the transaction.
If you are selling a car privately (not through a dealer), a bill of sale becomes your only written evidence of what was agreed to and when. Without one, disputes can arise: the buyer might claim they paid less, or you might have no proof you sold the vehicle at all. If the car is later involved in an accident or crime, having a signed bill of sale shows you are no longer the owner.
Colorado does not have a state-mandated bill of sale form, which means you can write one yourself, use a template, or buy a pre-printed form from an office supply store. The key is that it must be signed and dated by both parties.
Key Takeaways
- A bill of sale is a written record of the sale that protects both buyer and seller, even though Colorado does not legally require one to transfer a title.
- The document must include the vehicle identification number (VIN), the sale price, the date of sale, and signatures from both the seller and buyer.
- You can write your own bill of sale, use a free template, or purchase a pre-printed form — Colorado has no official state form.
- The buyer will need the bill of sale when they register the vehicle with the Colorado DMV, and you should keep a copy for your records.
- A bill of sale does not transfer the title itself; the buyer must still submit the signed title certificate to the DMV to become the legal owner.
What information to include on a Colorado bill of sale
Your bill of sale should contain the vehicle identification number (VIN), which appears on the driver's side dashboard and on the title certificate. Include the year, make, model, and color of the car. Write down the odometer reading on the date of sale — this protects the buyer by documenting the mileage at the time of purchase.
Record the sale price in words and numbers (for example, "One thousand five hundred dollars ($1,500.00"). State the date of the sale. Include the full names, addresses, and phone numbers of both the seller and buyer. Both parties must sign and print their names, and it is wise to have the signatures witnessed or notarized, though Colorado does not require this.
You may also note whether the sale is "as-is" (meaning the buyer accepts the car in its current condition with no warranty) or whether you are making any repairs or guarantees. If there are liens on the vehicle — meaning a lender still owns part of it — disclose that on the bill of sale so the buyer knows they cannot take full ownership until the lien is paid off.
Where to get a bill of sale form
The Colorado DMV website does not provide an official bill of sale form, but several sources offer free templates. The American Automobile Association (AAA) provides a free bill of sale template for members and non-members. You can also search online for "Colorado bill of sale template" and find PDFs from legal document websites.
Office supply stores like Staples or Office Depot sell pre-printed bill of sale pads for a few dollars. These are generic multi-state forms that work in Colorado. If you prefer a notarized version, some banks and credit unions will notarize a bill of sale for free or a small fee.
You can also write one from scratch using a word processor. The form does not need to be fancy — it just needs to be clear, complete, and signed by both parties. Keep it straightforward and include only the information listed in the section above.
How the bill of sale connects to title transfer
The bill of sale and the title certificate are two separate documents that work together. The bill of sale proves the sale happened and at what price. The title certificate is the legal ownership document issued by the Colorado DMV.
When you sell the car, you sign the back of the title certificate and give it to the buyer. The buyer then takes both the signed title and the bill of sale to the Colorado DMV to register the vehicle in their name. The DMV will issue a new title certificate with the buyer's name on it. Without the signed title, the buyer cannot become the legal owner, no matter how good the bill of sale is.
You should keep a copy of the bill of sale for your records. Some sellers take a photo of the signed bill of sale with their phone before handing it over. This creates a backup if questions arise later.
What happens if you do not have a bill of sale
If you sell a car without a bill of sale, the transaction still happens — the buyer can still register the vehicle once you sign the title. However, you lose the written proof that the sale occurred. If the buyer later claims they paid you less than they actually did, or if they do not pay you at all, you have no document to support your version of events.
Without a bill of sale, you also cannot prove when you stopped being the owner. If the car is involved in an accident or parking violation after the sale, the registered owner (you, on the old title) might be contacted. A bill of sale with a clear date and the buyer's signature protects you from liability after the handoff.
Creating a bill of sale takes ten minutes and costs nothing if you write it yourself. The small effort prevents much larger headaches later.
Notarizing a bill of sale in Colorado
Colorado does not require a bill of sale to be notarized, but doing so adds a layer of legal protection. A notary public is an official who verifies that the people signing the document are who they claim to be and that they are signing willingly.
You can find notaries at banks, credit unions, law offices, and some UPS stores. Many charge between $5 and $15 per signature. Some banks offer notary services free to customers. If you want a notarized bill of sale, both the buyer and seller should be present when the notary witnesses the signatures.
A notarized bill of sale is especially useful if the sale price is high or if you are concerned about disputes. For a routine private sale between people who know each other, a straightforward signed bill of sale is usually sufficient.
Common mistakes to avoid
Do not leave the sale price blank or write "cash" without a dollar amount. The price is important for tax purposes and for proving the transaction was real. Write out the exact amount in both numbers and words.
Do not forget to include the VIN. This is the only way to prove which specific vehicle was sold. A description like "my blue Honda" is not enough.
Do not sign the bill of sale before the buyer does, and do not let the buyer leave without signing it. Both signatures must be on the same document. If you sign first and the buyer never signs, you have no proof they agreed to the terms.
Do not assume the bill of sale transfers the title. It does not. You must also sign the back of the title certificate and hand it to the buyer. The buyer then takes both documents to the DMV.
Frequently Asked Questions
Can I sell a car in Colorado without a bill of sale?
Yes, Colorado does not legally require one. However, you should create one anyway because it is your only written proof of the sale, the price, and the date. Without it, you have no protection if the buyer disputes the terms or if the car is involved in an incident after the sale.
What if the buyer and I disagree on the price after the sale?
A signed bill of sale showing the agreed price is your evidence. Without one, it becomes a he-said-she-said situation with no documentation. This is why writing one down before money changes hands is so important.
Do I need to notarize the bill of sale?
No, Colorado does not require it. A straightforward signed and dated bill of sale is legally valid. Notarizing adds extra verification that both parties signed willingly, which can be useful for high-value sales or if you expect disputes.
What if the car has a loan on it?
You must disclose any liens on the bill of sale. The buyer should understand they cannot own the car free and clear until the lender is paid off. The lender may need to sign off on the title transfer, depending on the loan agreement.
Can I use a bill of sale from another state?
Yes, most bill of sale forms are generic and work across states. As long as it includes the required information — VIN, price, date, and signatures from both parties — Colorado will accept it when the buyer registers the vehicle.