What a bill of sale is and why you need one in Alabama
A bill of sale is a written record that you sold a vehicle to someone else. It names the seller, the buyer, the vehicle, the sale price, and the date. In Alabama, a bill of sale is not required by law to transfer ownership of a car — the title document itself is what the state recognizes as proof of ownership. However, a bill of sale protects both you and the buyer by creating a paper trail of the transaction, and it can prevent disputes later about the price paid, the condition of the vehicle, or who owned it on a specific date.
If you are selling a vehicle privately (not through a dealer), a bill of sale is the simplest way to document the sale. It costs nothing to create and takes a few minutes to write. Many buyers will ask for one, and some lenders require it if the buyer is financing the purchase.
Key Takeaways
- A bill of sale is a written record of the sale but is not required by Alabama law; the title transfer itself is what the state recognizes.
- You can write a bill of sale by hand or type it, and it should include the seller's name, buyer's name, vehicle details, sale price, date, and signatures from both parties.
- Alabama does not have an official state bill of sale form, so you can use a template from a reliable source or write one yourself following basic guidelines.
- Keep a copy of the bill of sale for your records even after you sign the title over to the buyer.
What information to include on an Alabama bill of sale
Write or type the following details on your bill of sale. There is no required format, but including all of these items protects both you and the buyer:
- Seller's full name and address
- Buyer's full name and address
- Vehicle year, make, model, and color
- Vehicle Identification Number (VIN) — found on the title and on the dashboard
- Odometer reading — the mileage at the time of sale
- Sale price — the amount paid, in dollars
- Date of sale
- Signatures of both seller and buyer — handwritten signatures are standard
Some sellers also note the vehicle's condition (for example, "sold as-is") or whether any warranty is included. This is optional but can prevent misunderstandings. You do not need to notarize a bill of sale in Alabama, though some buyers may request it for extra protection.
Where to find a bill of sale template
Alabama does not provide an official state bill of sale form. You have two options: use a template or write one yourself.
Many online sources offer free bill of sale templates designed for Alabama. The American Automobile Association (AAA) provides a template if you are a member. You can also search "Alabama bill of sale template" and find examples from legal document websites. When you use a template, fill in the blanks with your specific information and print it out.
If you prefer to write your own, straightforward use a blank piece of paper or a word processor. Start with a heading like "Bill of Sale" at the top, then list the information in the order shown above. The document does not need to be fancy — a handwritten bill of sale is just as valid as a typed one, as long as both parties sign it and all the key details are there.
How to sign and exchange the bill of sale
Print or write out two copies of the bill of sale — one for you and one for the buyer. Both of you should read it carefully to make sure all the information is correct, especially the VIN, sale price, and date.
Both the seller and the buyer should sign and date each copy in front of each other. Handwritten signatures are standard. You do not need a witness or notary, though some people choose to have a notary present for extra documentation. Once both parties have signed, each person keeps one copy.
The bill of sale should be completed on or before the day you hand over the keys and the title. Keep your copy in a safe place — you may need it later if a question arises about when you sold the vehicle or what price was agreed upon.
How the bill of sale relates to the title transfer
The bill of sale and the title are two separate documents. The bill of sale is your private record of the sale; the title is the official state document that proves ownership. In Alabama, the buyer must take the title to the Alabama Department of Revenue to register the vehicle in their name. The bill of sale is not submitted to the state, but the buyer may need to show it to the lender if they are financing the purchase.
As the seller, you should sign the back of the title where it says "Seller's Signature" and fill in the date and odometer reading. You may also need to fill in the buyer's name and address on the title. The exact steps depend on whether the title is a paper document or electronic. Check the Alabama Department of Revenue website or call your local county probate office if you are unsure how to complete the title transfer.
What to do if you lose the bill of sale later
If you lose your copy of the bill of sale after the sale is complete, it is not a major problem. The bill of sale is a record for your own protection, not a document the state requires you to keep. However, if a dispute arises — for example, if the buyer claims you promised to fix something or if there is a question about the sale price — having the bill of sale would help prove what was agreed upon.
If you did not keep a copy and need one later, you can ask the buyer for their copy. If the buyer no longer has it either, you can write a new one based on your memory of the transaction, sign and date it, and have the buyer sign it as well. This is less ideal than the original, but it is still better than having no record at all.
Frequently Asked Questions
Do I have to use a bill of sale to sell a car in Alabama?
No, Alabama law does not require a bill of sale. The title transfer alone is what the state recognizes. However, a bill of sale is a good idea because it protects both you and the buyer by documenting the sale price, date, and vehicle details in writing.
Can I handwrite the bill of sale, or does it have to be typed?
You can handwrite it. There is no requirement that it be typed or printed. As long as both parties sign it and all the key information is included, a handwritten bill of sale is just as valid as a typed one.
What if the buyer and I disagree on the sale price after the sale?
This is why a bill of sale matters. If you both signed a bill of sale that states the price, that document is your proof of what was agreed upon. Without it, it becomes a "he said, she said" situation. Always keep your copy in a safe place.
Do I need to get the bill of sale notarized?
No, notarization is not required in Alabama. However, some buyers may request it for extra peace of mind. If the buyer asks for it, you can take the signed bill of sale to a notary public (often available at banks, UPS stores, or law offices) and have them witness your signatures. There is usually a small fee, typically a few dollars.
What happens to the bill of sale after I transfer the title?
You keep your copy for your records. The bill of sale is not submitted to the state — only the title is. The buyer keeps their copy as proof of purchase. Both of you should store your copies somewhere safe in case you need them later.