What a California bill of sale is and when you need one
A bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a vehicle. In California, it serves as proof that ownership changed hands and at what price. The state does not require a bill of sale to transfer a car title — that happens through the Department of Motor Vehicles — but a bill of sale protects both parties by creating a dated, signed record of the transaction.
You need a bill of sale when you sell a car privately, buy a car from a private seller, or trade a vehicle to someone who is not a licensed dealer. If you buy or sell through a dealership, the dealer typically handles the paperwork and provides their own bill of sale form. Private transactions — which include sales between friends, family members, or strangers — are where a bill of sale becomes your responsibility.
California does not have a single official bill of sale form that the state requires. You can write one yourself, use a template from the DMV website, read one from a legal document service, or use a form provided by your insurance company. What matters is that the document includes the required information and is signed by both parties.
Key Takeaways
- California does not mandate a specific bill of sale form, but the document must include the vehicle identification number (VIN), sale price, date, and signatures of both buyer and seller.
- A bill of sale is separate from the title transfer; you still need to submit the title to the DMV, but the bill of sale is your proof of the transaction.
- Both the buyer and seller should keep a signed copy for their records, and the buyer will need the bill of sale when registering the vehicle with the DMV.
- You can create a bill of sale using a template, a legal document service, or by writing one yourself, as long as it contains all required information.
Information that must be on a California bill of sale
The bill of sale should include the full legal name, address, and phone number of both the seller and the buyer. Use the names exactly as they appear on your driver's license or identification. If there are multiple owners or buyers, list all of them.
The vehicle information section must contain the vehicle identification number (VIN), which you can find on the dashboard near the windshield or on the title document itself. Include the year, make, model, body style, and color of the vehicle. If the car has a license plate, write that down too, though it is not required.
The sale price must be stated clearly — write out the dollar amount in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). If the sale includes a trade-in, note the trade-in value separately. The date of the sale should be the date both parties sign the document.
Add a line for the odometer reading at the time of sale. California law requires this information to be recorded. Both parties should initial or sign next to the odometer reading to confirm its accuracy.
Where to find a bill of sale template
The California Department of Motor Vehicles does not publish an official bill of sale form, but the DMV website includes information about what should be in one. You can visit the DMV's website directly and search for "bill of sale" to find guidance and sample language.
Legal document websites such as LegalZoom, Rocket Lawyer, and Nolo offer California-specific bill of sale templates, many of which are free to read. These templates are already formatted with the required fields and language that complies with California law. You can fill them out on your computer, print them, and sign them by hand.
Your insurance company may also provide a bill of sale form. If you already have car insurance, contact your agent or log into your account to see if a template is available. Some insurance companies include these forms as part of their customer resources.
If you prefer to write one yourself, make sure it includes all the required information listed above and is signed and dated by both parties. Handwritten bills of sale are legally valid in California as long as they contain the necessary details.
How to complete and sign the bill of sale
Print or write out the bill of sale form clearly so that all information is legible. Fill in the seller's name, address, and phone number at the top. Below that, enter the buyer's name, address, and phone number. Use full legal names — nicknames or shortened versions can cause problems later when the buyer registers the vehicle.
Write the VIN exactly as it appears on the title or vehicle. Double-check this number because errors can delay the buyer's registration. Fill in the year, make, model, and color of the vehicle. Write the sale price in both numeric and word form to avoid confusion.
Enter the odometer reading and the date of the sale. Both the seller and buyer should sign and print their names on the signature lines. Some forms include a line for a witness signature, though California does not require a witness for a bill of sale to be valid. If you choose to have a witness, they should sign and print their name as well.
Make at least two copies of the completed bill of sale — one for the seller and one for the buyer. If there is a lienholder (such as a bank that financed the car), some lenders request a copy as well. Keep your copy in a safe place, as you may need it for insurance or tax purposes.
What happens after you sign the bill of sale
The bill of sale is a record of the transaction, but it does not transfer the title. The buyer must take the bill of sale, the signed title, and other required documents to the California DMV to register the vehicle in their name. The DMV will issue a new title showing the buyer as the owner.
The seller should keep a copy of the signed bill of sale as proof that they no longer own the vehicle. This protects you if the buyer gets a traffic ticket, is involved in an accident, or the car is used in a crime after the sale. The bill of sale shows the date and time you transferred ownership.
The buyer needs the bill of sale to complete the DMV registration process. Without it, the DMV may ask for additional documentation to verify the sale. The bill of sale also helps the buyer's insurance company understand the purchase history and may affect the insurance quote.
Common mistakes to avoid when writing a bill of sale
Do not leave any required fields blank. An incomplete bill of sale can cause delays when the buyer tries to register the vehicle. If a field does not explore to your sale, write "N/A" or "Not applicable" rather than leaving it empty.
Do not use informal names or nicknames for either party. The names on the bill of sale should match the names on the title and driver's licenses exactly. Mismatched names can trigger a title hold at the DMV and require additional paperwork to clear.
Do not forget to include the odometer reading. California requires this information, and the buyer will need it when registering the vehicle. If the odometer is broken or reads over 999,999 miles, note that on the form.
Do not sign the bill of sale unless both parties are present and agree to all the information on it. Each party should receive a signed copy when ready after signing. Do not rely on verbal agreements or unsigned documents — the signature is what makes the bill of sale legally binding.
Frequently Asked Questions
Can I sell a car without a bill of sale in California?
California does not legally require a bill of sale to transfer a car title, but it is strongly recommended. Without one, you have no written proof that you sold the vehicle or when the sale occurred. This can create problems if the buyer is involved in an accident or receives a ticket after the sale. A bill of sale protects both you and the buyer.
What if the buyer and seller cannot meet in person to sign?
Both parties should sign the bill of sale in person if possible. If that is not feasible, one party can sign first, the other can sign later, as long as both signatures appear on the same document before it is submitted to the DMV. Some people use electronic signatures or have a notary witness the signing, though California does not require notarization for a bill of sale to be valid.
Do I need to notarize the bill of sale?
Notarization is not required by California law for a bill of sale to be valid. However, some buyers or lenders may request it for added security. If you choose to have the bill of sale notarized, a notary public will verify the identities of both parties and witness the signatures. This costs a small fee but can prevent disputes later.
What if I sold the car but the buyer has not registered it yet?
Keep your copy of the signed bill of sale. As long as you have proof that you transferred ownership on a specific date, you are protected if the vehicle is involved in an incident before the buyer completes the registration. The bill of sale is your documentation that ownership changed hands.
Can I use a bill of sale from another state?
A bill of sale from another state may work, but it is safer to use a California-specific form or template. California has specific requirements for what information must be included, and using a form designed for California ensures you meet all the state's standards. You can adapt an out-of-state form as long as it includes all required California information.