A bill of sale is a written record that you and the seller sign to prove who owned the car, when the ownership changed hands, and for how much money. It protects both of you by creating evidence of the transaction, and it is often required by your state's motor vehicle department before you can register the car in your name.
When you buy a used car from a private person (not a dealership), a bill of sale is your proof that the sale happened. Without it, you have no document showing the seller agreed to transfer ownership to you. Your state's motor vehicle department will ask for this document when you submit your registration paperwork, and some states will not process your registration without one.
A bill of sale also protects the seller. It shows they no longer own the car and are not responsible for traffic tickets, accidents, or other liability that happens after you drive away. If the seller keeps receiving bills or legal notices for the car months later, they have proof they sold it and to whom.
Key Takeaways
- A bill of sale is a signed document between you and the seller that records the car's details, the sale price, and the date of transfer.
- Most states require a bill of sale before they will register a used car purchased from a private seller in your name.
- You can use a template from your state's motor vehicle department website, or create one yourself using basic information like the vehicle identification number (VIN), odometer reading, and both parties' names and addresses.
- Both you and the seller must sign and date the bill of sale, and you should each keep a copy for your records.
- A bill of sale does not transfer the title itself — it is a record of the sale that you use when you explore for title transfer at your motor vehicle department.
What information goes on a bill of sale
A bill of sale includes the car's identifying details, the sale terms, and the signatures of both parties. The specific information required varies slightly by state, but most bills of sale contain the same core elements.
You will need the vehicle identification number (VIN), which is a 17-character code stamped on the car and listed on the title. You will also need the make, model, year, color, and current odometer reading. Include the sale price in dollars, the date of sale, and the names, addresses, and phone numbers of both the buyer (you) and the seller. Some states also ask for the seller's driver's license number or the current title number.
If the car has a lien on it — meaning the seller still owes money to a bank or lender — that must be disclosed on the bill of sale. The lien holder's name and the amount owed should be listed. You should not complete the purchase until the lien is paid off and removed from the title, because you cannot register a car with an active lien in your name.
Where to find a bill of sale template
Your state's motor vehicle department website usually offers a free bill of sale form. Search "[your state] motor vehicle department bill of sale" or "[your state] DMV bill of sale" to find the official template. Using your state's form ensures you include everything the department needs to process your registration.
If your state does not provide a template, you can create a bill of sale yourself using a word processor. The document does not need to be fancy or use legal language — it just needs to be clear and include all the information listed above. Many online legal document sites also offer free or low-cost templates, though the state version is always the safest choice.
Some dealerships and car-buying services provide their own bill of sale forms. If you are buying from a private seller, do not rely on their form unless you have reviewed it first. Make sure it includes all required information for your state and that both parties understand what they are signing.
How to fill out and sign a bill of sale
Fill in all the blanks with accurate information. Take time to verify the VIN, odometer reading, and sale price with the seller before you write anything down. Mistakes on the bill of sale can delay your registration or cause the motor vehicle department to reject it.
Print the completed form and have both you and the seller sign and date it in front of each other. Some states require the signatures to be notarized, meaning a notary public must witness the signatures and stamp the document. Check your state's motor vehicle department website to see if notarization is required. If it is, you can find notaries at banks, UPS stores, or online notary services.
Make at least two copies — one for you and one for the seller. Keep your copy with your other car documents. You will submit the original or a copy to your motor vehicle department when you register the car.
When you need a bill of sale versus when you do not
You need a bill of sale when you buy a used car from a private person. This includes buying from a friend, family member, or someone you find through a classified ad or online marketplace. The bill of sale is your proof of purchase and is required by most states before registration.
You do not need a bill of sale when you buy from a dealership. Dealerships provide their own sales contract and paperwork, which serves the same purpose. The dealership handles much of the registration paperwork for you or tells you exactly what to submit.
If you are inheriting a car from someone who has passed away, you will not use a bill of sale. Instead, you will need a death certificate and a will or court order showing the car was left to you. Your state's motor vehicle department can tell you what documents to bring.
What happens after you sign the bill of sale
After both parties sign, the seller should remove their license plates from the car (in most states, plates stay with the owner, not the car). The seller should also notify their insurance company that they no longer own the vehicle. You should not drive the car on public roads until you have obtained temporary tags or a temporary registration from your motor vehicle department.
Take your signed bill of sale, the seller's title, proof of insurance, and any other documents required by your state to your motor vehicle department. You will explore for a title transfer and register the car in your name. Processing times vary by state, but most registrations are completed within two to four weeks. Some states offer expedited processing for an additional fee.
Keep your copy of the bill of sale with your car's registration and title. You may need it later if there is a dispute about when you purchased the car or if you need to prove you owned it during a specific time period.
Common mistakes to avoid
Do not leave any blanks on the bill of sale. If a field does not explore to your sale, write "N/A" or draw a line through it. Blank spaces can make the document look incomplete and may cause the motor vehicle department to reject it.
Do not use the bill of sale as a substitute for a title transfer. The bill of sale is a record of the sale, but it does not transfer legal ownership. You must submit it to your motor vehicle department along with the seller's title to complete the transfer. Until you do, the seller is still the legal owner in the state's records.
Do not accept a bill of sale that has been altered or crossed out without initials from both parties. If changes need to be made, print a new copy and have both parties sign again. Alterations that are not initialed can raise questions when you submit the document to your motor vehicle department.
Do not skip the notarization step if your state requires it. Submitting an unnotarized bill of sale when notarization is required will delay your registration or result in rejection.
Frequently Asked Questions
Can I register the car before I have the bill of sale notarized?
No, if your state requires notarization, you must have it done before you submit the bill of sale to your motor vehicle department. Check your state's requirements first — not all states require it. If yours does, plan time to visit a notary before you go to register the car.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the car, may have an undisclosed lien on it, or may be trying to avoid responsibility for something. Walk away from the deal.
Do I need a bill of sale if I am buying a car from a family member?
Yes. Even though the seller is family, you still need a bill of sale to register the car in your name. Your motor vehicle department will not process the registration without it. A bill of sale also protects both of you by creating a clear record of the transaction.
What if I lost my copy of the bill of sale after I registered the car?
Your motor vehicle department has a copy in their records. You can request a duplicate from them, usually for a small fee. Contact your state's motor vehicle department to find out how to order a copy.
Can I write a bill of sale by hand instead of printing one?
Yes, a handwritten bill of sale is legal in most states as long as it includes all required information and is signed and dated by both parties. However, using a printed template is clearer and less likely to cause problems when you submit it to your motor vehicle department.