What a bill of sale is and why Virginia requires one
A bill of sale is a written record that you and the buyer (or seller) sign to document that a car has changed hands. In Virginia, the bill of sale serves as proof of the transaction and protects both parties by creating a paper trail of who owned the vehicle and when the ownership changed.
Virginia law does not require a bill of sale to transfer a car title, but the Department of Motor Vehicles strongly recommends one. The title itself—the official ownership document—is what transfers legal ownership, but a bill of sale is your protection if a dispute arises later about the sale price, the condition of the car, or whether the sale actually happened. If you sell a car without one and the buyer later claims you misrepresented the vehicle or disputes the price, you have no written evidence to back your account.
The bill of sale also protects the buyer by documenting what they paid and confirming they bought the car from you on a specific date. If the car has outstanding loans or liens, the bill of sale can note that fact so the buyer knows what they are inheriting.
Key Takeaways
- Virginia does not legally require a bill of sale, but the DMV recommends one because it protects both the seller and buyer if disputes arise later.
- The bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the buyer and seller.
- You can use Virginia's official bill of sale form or write your own, as long as it contains all required information and is signed by both parties.
- The buyer will need the bill of sale when they register the car with the Virginia DMV, so keep a copy for your records and give the original to the buyer.
What information must go on a Virginia bill of sale
A bill of sale for a car in Virginia must include the vehicle identification number (VIN), which appears on the dashboard and on the title. It should also show the make, model, year, and color of the car so there is no confusion about which vehicle the sale covers. Include the odometer reading at the time of sale—this is important because it documents the mileage and helps prevent odometer fraud.
Write down the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). Include the date of the sale and the full names and addresses of both the seller and the buyer. If there is a loan or lien on the car—meaning the bank or another lender still owns part of it—note that on the bill of sale so the buyer knows they will need to wait for the lien to be released before they own the car outright.
Both the seller and buyer must sign and date the bill of sale. Some people have the signatures notarized (certified by a notary public), which adds an extra layer of proof, though Virginia does not require it. If you notarize the document, the notary will also sign and stamp it.
Using Virginia's official bill of sale form
Virginia does not have a single official bill of sale form issued by the DMV, but the state does provide guidance on what a bill of sale should contain. You can read a bill of sale template from the Virginia DMV website or use one from a reputable legal document service. The template will have blank spaces for the VIN, sale price, buyer and seller information, and signatures.
If you use a template, fill in all the blanks clearly and legibly. Print it out, have both parties sign it, and make copies for your records. The buyer will need a copy when they go to the DMV to register the car in their name. Keep your copy in a safe place in case questions come up later about the sale.
Writing your own bill of sale if you do not use a form
You can write a bill of sale by hand or type one yourself if you prefer not to use a template. Start with a heading that says "Bill of Sale" at the top. Then write out the key facts: the date, the seller's name and address, the buyer's name and address, the vehicle details (VIN, make, model, year, color, odometer reading), and the sale price written both as a number and in words.
Add a sentence stating that the seller is selling the vehicle to the buyer for the stated price and that the buyer is purchasing it in its current condition. If there are any known issues with the car or if there is a lien on it, mention that. Then leave space for both parties to sign and date the document. A handwritten bill of sale is legally valid in Virginia as long as it contains all the necessary information and both parties sign it.
What happens after you sign the bill of sale
Once both parties have signed, make at least two copies—one for the seller and one for the buyer. The buyer will bring their copy to the Virginia DMV when they register the car in their name. The DMV will use the bill of sale to confirm the sale price and the vehicle details as part of the registration process.
The seller should keep their copy for their records. If the car is financed and there is a lien on the title, the lender must release that lien before the buyer can register the car in their own name. The bill of sale documents when the sale occurred, which is important if there are any questions about who owned the car at a particular time.
If you are the buyer, do not lose your copy of the bill of sale. You will need it to complete the title transfer at the DMV, and it serves as your proof of purchase. If you are the seller, keep your copy for at least several years in case any disputes arise about the sale.
Notarizing your bill of sale
While Virginia does not require a notarized bill of sale, having it notarized adds legal weight to the document. A notary public is someone authorized by the state to witness signatures and verify that the people signing are who they say they are. To notarize a bill of sale, both the buyer and seller must appear in person before a notary with a photo ID.
You can find notaries at banks, law offices, UPS stores, and some libraries. There is usually a small fee, typically between $5 and $15 per signature. The notary will watch you both sign, check your IDs, and then sign and stamp the document themselves. This creates an official record that the signatures are genuine, which can be valuable if a dispute ever arises.
Common mistakes to avoid when writing a bill of sale
Do not leave blanks on the bill of sale. If you do not know something—for example, if the buyer's address is incomplete—fill in what you do know and ask the other party to provide the missing information before signing. A bill of sale with blank spaces can be challenged later as incomplete or unfinished.
Do not forget to include the VIN. This is the single most important piece of information because it uniquely identifies the vehicle. Without it, someone could argue that the bill of sale refers to a different car. Also, do not guess at the sale price or write it down incorrectly. The price should match what you and the other party actually agreed to, because the DMV will see this number and it affects the registration process.
Do not sign the bill of sale unless you are certain about the terms. Once both parties have signed, it becomes a binding record of the transaction. If you change your mind later, the bill of sale is evidence that the sale took place. Make sure you and the other party agree on everything—the price, the condition of the car, whether there are any liens, and the date—before anyone signs.
Frequently Asked Questions
Do I need a bill of sale if I am trading in my car at a dealership?
No. When you trade in a car at a dealership, the dealership handles the title transfer and paperwork. They will have you sign documents, but you do not need a separate bill of sale. The dealership's paperwork serves the same purpose.
What if I sell a car to a family member?
You should still use a bill of sale, even if you are selling to a family member. It protects both of you by documenting the sale price and the date. If you are giving the car away for free, you can write "no charge" or "$0" as the sale price, but still include all other information and have both parties sign.
Can I sell a car without a title in Virginia?
No. The title is the official proof of ownership, and you cannot transfer ownership without it. If you have lost your title, you must get a replacement from the Virginia DMV before you can sell the car. The bill of sale documents the sale, but the title is what actually transfers ownership.
What if the buyer does not show up to sign the bill of sale?
Do not hand over the car or the keys until both parties have signed the bill of sale. The bill of sale is your proof that the sale happened and that you are no longer responsible for the vehicle. If the buyer refuses to sign, do not complete the sale.
How long should I keep my copy of the bill of sale?
Keep your copy for at least three to five years. This protects you if any questions arise about the sale, such as disputes over the price or the condition of the car. After that time, you can safely discard it, though there is no harm in keeping it longer.