A bill of sale is a document that records the transfer of a vehicle from one owner to another, signed by both parties
A bill of sale is a written record that you and the buyer (or seller, depending on which side you're on) sign to show that ownership of a vehicle has changed hands. It documents what was sold, who sold it, who bought it, the price paid, and the date of the transaction. The form itself is not issued by a government agency — you create it, either by filling out a template or writing one yourself.
The bill of sale serves as proof of the transaction if there's ever a dispute about who owned the vehicle on a particular date, whether the sale actually happened, or what was agreed to. It's also the document you'll typically need to show your state's motor vehicle department when you register the vehicle in your name or transfer the title.
Whether a bill of sale is legally required varies by state. Some states demand one before they'll process a title transfer; others treat it as optional but strongly recommended. Either way, having one protects both the buyer and the seller.
Key Takeaways
- A bill of sale records the vehicle's details, the sale price, and the signatures of both buyer and seller, and serves as proof the transaction occurred.
- Most states require a bill of sale before they will process a title transfer at the motor vehicle department, though a few accept other proof of sale.
- You can use a state-specific template (often found on your state's motor vehicle website), a generic template, or write one yourself as long as it includes the vehicle identification number, sale price, date, and both signatures.
- The buyer and seller should each keep a signed copy for their records, and the buyer will usually submit one copy with the title transfer paperwork.
What information goes on a bill of sale
A complete bill of sale includes the vehicle's year, make, model, and vehicle identification number (VIN) — the 17-character code stamped on the driver's side dashboard and listed on the title. It also shows the sale price, the date of sale, and the full names and addresses of both the seller and the buyer.
Many templates also include a section for the vehicle's odometer reading at the time of sale, the condition of the vehicle (as-is, with warranty, etc.), and any notes about what's included in the sale — for example, whether floor mats, a spare key, or service records are part of the deal. Both the buyer and seller sign and date the form, and some states require the signatures to be notarized, though most do not.
The bill of sale does not transfer the title itself — that happens at the motor vehicle department. The bill of sale is the evidence that a sale occurred and the supporting document you bring with you when you explore for the title transfer.
Where to find a bill of sale template
Your state's motor vehicle department website usually offers a bill of sale form specific to your state's requirements. Search "[your state] motor vehicle bill of sale" or "[your state] DMV bill of sale form" to find it. If your state doesn't provide an official template, the motor vehicle website will often list what information must be included.
Generic bill of sale templates are also available through legal document websites, office supply retailers, and free template sites. These work in most states as long as they include the required information — VIN, sale price, date, and signatures. Some people straightforward write out the details on a blank sheet of paper, which is legally valid in most states as long as it contains the essential information and is signed by both parties.
If you're buying or selling a vehicle privately (not through a dealer), using a template is simpler and clearer than writing one from scratch. If you're concerned about your state's specific rules, call your local motor vehicle office and ask what they require on a bill of sale before you sign anything.
How the bill of sale fits into the title transfer process
After you buy a vehicle, you have a set window — usually 10 to 30 days, depending on your state — to transfer the title into your name. You'll bring the signed bill of sale, the current title (signed by the seller), proof of insurance, and proof of your identity to your state's motor vehicle office. Some states also require a completed process for title transfer.
The motor vehicle department uses the bill of sale to confirm that a sale occurred and to record the new owner. They'll issue you a new title in your name. If the bill of sale is missing or incomplete, the department may reject your process and ask you to go back to the seller to get a corrected or signed copy.
This is why it's important to sign the bill of sale at the time of the sale, not weeks later. If you wait and the seller moves or becomes unreachable, getting a signature retroactively becomes difficult or impossible.
State-by-state differences in bill of sale requirements
Most states require a bill of sale as part of the title transfer process, but a few accept other proof of sale — such as a receipt from a dealer, a credit card statement, or a bank transfer record. Some states require the bill of sale to be notarized; others do not. A handful of states have their own official bill of sale form that you must use; most accept any form as long as it contains the required information.
The safest approach is to check your state's motor vehicle website before you buy or sell. Look for the title transfer section and see what documents they list as required. If the website doesn't clearly state whether a bill of sale is required, call the office directly. The answer takes five minutes and can save you a trip back to the seller later.
What to do if you've already sold or bought a vehicle without a bill of sale
If you're the buyer and you've already purchased a vehicle but never signed a bill of sale, you can still create one now. Contact the seller, explain that you need it for the title transfer, and ask them to sign a bill of sale dated with the original sale date. Most sellers will cooperate because they have no reason not to — it doesn't change anything about the transaction, just documents what already happened.
If the seller refuses or is unreachable, you may still be able to transfer the title using other proof of sale — a receipt, a text message exchange, a bank transfer record, or a witness statement. Contact your state's motor vehicle department and explain the situation. They can tell you what alternative proof they'll accept. Some states are flexible; others are strict. Having something is better than having nothing.
If you're the seller and the buyer never asked for a bill of sale, you're not obligated to create one retroactively. However, if they contact you later asking for one because they're having trouble with the title transfer, signing one protects you too — it creates a record that you sold the vehicle on a specific date, which can matter if there's ever a dispute about liability or ownership.
Common mistakes to avoid when filling out a bill of sale
The most common error is writing down the VIN incorrectly. Copy it directly from the title or the dashboard — don't rely on memory. A wrong VIN can cause the motor vehicle department to reject your process or issue a title for the wrong vehicle.
Another frequent mistake is leaving the sale price blank or writing "as-is" instead of a number. Most states require an actual dollar amount. If you're not sure what price to write (for example, if the vehicle was a gift or a trade-in), contact your motor vehicle department and ask what they require. Some states have a minimum value they'll accept; others will accept any amount you both agree to.
Signing in pen rather than pencil, dating the form incorrectly, or having only one party sign are also common problems. Make sure both the buyer and seller sign and date the form in ink, and use the actual date of the sale. If you're signing weeks after the sale, use the original sale date, not the date you're signing.
Frequently Asked Questions
Do I need a bill of sale if I'm buying from a car dealer?
No. Dealers provide their own paperwork — usually a sales contract and a document called a "dealer's statement of origin" or "manufacturer's certificate of origin." These serve the same purpose as a bill of sale. You won't need a separate bill of sale when buying from a dealership.
Can I use a bill of sale from a website template, or does it have to be my state's official form?
Most states accept any bill of sale form as long as it includes the required information: VIN, sale price, date, and both signatures. A few states have an official form they prefer or require. Check your state's motor vehicle website to be sure, but a generic template usually works.
What if the buyer and I disagree on the sale price after we've signed the bill of sale?
The bill of sale is a binding record of what you both agreed to on the date you signed it. If there's a dispute, the signed bill of sale is the evidence of what the actual price was. This is why it's important to write down the correct price before you sign — changing it afterward can create legal problems for both parties.
Do both the buyer and seller need to keep a copy of the bill of sale?
Yes. Each party should keep a signed copy for their records. The buyer will submit one copy to the motor vehicle department with the title transfer paperwork. The seller keeps their copy as proof that they sold the vehicle and are no longer responsible for it.
Can I write a bill of sale by hand, or does it have to be typed?
Handwritten bill of sales are legal in most states as long as they include all required information and are signed by both parties. Typed forms are clearer and less likely to cause confusion, but handwritten ones are acceptable. Use pen, not pencil, so the writing doesn't fade or get erased.