What a bill of sale is and why Virginia requires one

A bill of sale is a written record that you sold a car to someone else. In Virginia, it serves as proof of the transaction — it shows who owned the car, who bought it, when the sale happened, and for how much money. The state does not legally require a bill of sale to transfer a car title, but the Department of Motor Vehicles strongly recommends one because it protects both the seller and the buyer if questions come up later about the sale.

Without a bill of sale, you have no written proof that you no longer own the vehicle. If the new owner gets into an accident, racks up parking tickets, or commits a crime with the car before the title transfer is complete, you could be held responsible. A bill of sale shifts that liability to the buyer and creates a clear record of when ownership changed hands.

Key Takeaways

  • A bill of sale documents the sale of your car and protects you from liability after you sell it, even though Virginia does not legally require one.
  • You can use a straightforward written document with the seller's name, buyer's name, vehicle details, sale price, and date — or read Virginia's optional form from the DMV website.
  • Both the seller and buyer should sign the bill of sale, and each should keep a copy for their records.
  • The bill of sale is separate from the title transfer; you will still need to complete the title paperwork at the DMV or through a dealer.

What information to include on a Virginia bill of sale

A bill of sale needs to identify the car clearly so there is no confusion about which vehicle was sold. Include the vehicle identification number (VIN), which you can find on the dashboard near the windshield or on the title document itself. Also write down the year, make, model, and color of the car. If the car has a license plate, include that too.

Next, write the names and addresses of both the seller and the buyer. Then record the sale price — the actual amount of money that changed hands, even if it was a gift or a trade-in. Add the date of the sale. Both the seller and the buyer should sign and print their names at the bottom. Some people also add the odometer reading on the day of sale, which can be useful if questions arise about the car's condition or mileage history.

Using Virginia's optional bill of sale form

The Virginia Department of Motor Vehicles provides an optional bill of sale form that you can read from its website. Search for "Virginia bill of sale" on the DMV website to find it. This form has all the standard fields already laid out — you just fill in the blanks with the seller's information, buyer's information, vehicle details, and sale price.

Using the official form is not required, but it can be helpful because it ensures you do not forget any important details. If you prefer, you can write your own bill of sale on plain paper as long as it includes all the information listed above. Either way, the document should be signed by both parties and dated.

How to handle the bill of sale during the sale

Create or print two copies of the bill of sale before you meet the buyer — one for you to keep and one for them. When you hand over the keys and the title, also hand over the buyer's copy of the bill of sale. Have both parties sign both copies so each of you has a signed version.

Keep your signed copy in a safe place. If the buyer does not transfer the title into their name right away, or if something goes wrong with the car later, you will need proof that you sold it and when. The bill of sale is that proof. Do not rely on the buyer to handle the paperwork on time — follow up with them after a few weeks to make sure they have submitted the title transfer to the DMV.

The difference between a bill of sale and a title transfer

A bill of sale and a title transfer are two separate documents that serve different purposes. The bill of sale is a record between you and the buyer that the sale happened. The title transfer is the official paperwork that tells the state of Virginia that the car's ownership has changed.

In Virginia, the buyer is responsible for taking the title, the bill of sale, and other required documents to the DMV to register the car in their name. The DMV will issue a new title with the buyer's name on it. You should not sign the title over to the buyer until you are ready to complete the sale — the title is what the state uses to track ownership, so signing it early can create confusion. The bill of sale, by contrast, can be signed at any point during the transaction and serves as your protection while the title paperwork is being processed.

What to do if you are buying a car and the seller will not provide a bill of sale

If you are the buyer and the seller refuses to write a bill of sale, you can create one yourself and ask the seller to sign it. Bring a pen and a blank piece of paper (or print out the Virginia DMV form) to the meeting, fill in all the details, and ask the seller to sign. Most sellers will do this without hesitation because it protects them too.

If the seller still refuses, that is a red flag. It suggests they may not actually own the car, may have liens against it that they have not disclosed, or may be trying to hide something about the transaction. Do not buy the car without a bill of sale and without seeing the title in the seller's name. A bill of sale costs nothing and takes five minutes — any legitimate seller will provide one.

Keeping records after the sale

Store your signed copy of the bill of sale with your other important documents. If you are the seller, keep it for at least a few years in case questions come up about the sale or the car's condition. If you are the buyer, keep it until you have received the new title from the DMV in your name, and then keep it with your title and registration documents.

If you sell the car privately rather than to a dealer, the bill of sale is your main protection. It shows when you transferred ownership and for how much. If the buyer later gets a ticket or is involved in an accident before the title is transferred, you can show the bill of sale to prove you were no longer responsible for the vehicle at that time.

Frequently Asked Questions

Does Virginia law require a bill of sale for a car?

No, Virginia does not legally require a bill of sale. However, the DMV recommends one because it protects both the seller and buyer by creating a written record of the transaction. Without it, you have no proof that you sold the car or when the sale occurred.

Can I write my own bill of sale or do I have to use the DMV form?

You can write your own bill of sale on plain paper. It does not have to be the official DMV form. As long as it includes the seller's name and address, buyer's name and address, vehicle identification number, year, make, model, sale price, date, and signatures from both parties, it will serve the same purpose.

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, the car will still be registered to you. You could be held liable for parking tickets, tolls, or accidents involving the vehicle. A bill of sale proves you sold it, but you should follow up with the buyer to may support they complete the title transfer within a reasonable time. If they do not, contact the DMV to report the sale.

Do I need a bill of sale if I sell my car to a dealer?

Dealers typically handle their own paperwork and do not require a bill of sale. However, it does not hurt to ask for one or to create one for your records. Dealers are used to processing title transfers and will handle the registration in their name automatically.

Should I include the odometer reading on the bill of sale?

Including the odometer reading is optional but recommended. It creates a record of the car's mileage at the time of sale, which can be useful if disputes arise later about the car's condition or history. Write the exact mileage shown on the odometer on the day of the sale.