A California bill of sale is a document that proves you sold or bought a vehicle

A bill of sale is a written record that you and the other person sign to show that a vehicle changed hands. In California, it serves as proof of the transaction — who owned the car, who owns it now, how much was paid, and when the sale happened. The state does not require a bill of sale to transfer a vehicle title, but having one protects both the buyer and seller by creating a paper trail if questions come up later.

The bill of sale is separate from the vehicle title (the official ownership document). You will file the title with the California Department of Motor Vehicles to make the ownership change official. The bill of sale stays with you as your record of the transaction.

Key Takeaways

  • A bill of sale documents the sale price, vehicle details, buyer and seller names, and the date of the transaction, and both parties must sign it.
  • California does not legally require a bill of sale, but having one protects you if a dispute arises about the sale or the vehicle's condition.
  • You can use the DMV's official form (REG 135) or write your own bill of sale as long as it includes the required information.
  • The buyer needs the bill of sale when registering the vehicle with the DMV, and the seller should keep a copy for their records.

What information must go on a California bill of sale

The bill of sale should include the vehicle identification number (VIN), make, model, year, and color. It must also show the sale price, the date of the sale, and the full names and addresses of both the buyer and the seller. Both parties must sign and date the document.

If the vehicle has a lien (meaning a lender still owns part of it), that should be noted on the bill of sale. The same applies if the seller is still paying off a loan — the buyer needs to know this before completing the purchase. You can also note the vehicle's condition, mileage, and whether any repairs or issues were discussed, though this is optional.

Using the DMV's official bill of sale form

California's Department of Motor Vehicles provides form REG 135, which is the official bill of sale template. You can read it from the DMV website, print it, and fill it out by hand or on a computer. The form walks you through each piece of information needed and is recognized by the DMV when the buyer registers the vehicle.

Using the official form is not required — California accepts any bill of sale that contains the necessary information — but it removes any question about whether you included everything. The form is free and takes only a few minutes to complete.

Writing your own bill of sale instead of using the DMV form

You can write a bill of sale on plain paper if you prefer. Start with a heading like "Bill of Sale" at the top. Then list the seller's name and address, the buyer's name and address, the vehicle details (VIN, year, make, model, color), the sale price, and the date. End with signature lines for both the buyer and seller, with space for the date each person signs.

Keep the language straightforward and straightforward. A sentence like "I, [seller name], sell the vehicle described above to [buyer name] for $[amount] on [date]" is enough. The goal is to have a clear record that both people agreed to the sale and the price. If you want to note that the sale is "as is" (meaning the buyer accepts the vehicle in its current condition), you can add that too.

When the seller still owes money on the vehicle

If you are selling a car that still has a loan against it, the bill of sale should state that the buyer understands there is an outstanding loan. The lender's name and the amount owed can be included. This protects the buyer by making clear they know about the debt and protects you by showing you disclosed it.

The buyer will need to work with you and the lender to handle the payoff. Usually, the lender will not release the title until the loan is paid in full. Some buyers pay off the loan themselves as part of the purchase, while others arrange for the seller to pay it off at closing. The bill of sale should reflect whatever arrangement you agreed to.

What happens after both parties sign

Once you and the buyer have both signed the bill of sale, each of you should keep a copy. The buyer will need their copy when they go to the DMV to register the vehicle in their name. The seller should keep their copy as proof that they no longer own the vehicle — this is important if the buyer gets a ticket or is in an accident after the sale.

The buyer then takes the bill of sale, the vehicle title, proof of insurance, and identification to the DMV to complete the title transfer. The DMV will issue a new title in the buyer's name. The seller does not need to do anything with the DMV unless they want to formally release their interest in the vehicle, which some sellers do for extra protection.

Protecting yourself as a seller

A bill of sale is your main protection as a seller. It shows you transferred ownership on a specific date, which means you are not responsible for anything that happens to the vehicle after that point. If the buyer gets a parking ticket or is involved in an accident, the bill of sale proves the vehicle was no longer yours.

Some sellers also notify the DMV that they have sold the vehicle, even though this is not required. You can do this by submitting form REG 138 (Notice of Transfer and Release of Liability) to the DMV. This creates an official record that you are no longer the owner and adds another layer of protection. Keep a copy of everything you file with the DMV.

Frequently Asked Questions

Do I have to use the DMV form, or can I write my own bill of sale?

You can write your own. California accepts any bill of sale that includes the vehicle details, sale price, buyer and seller names and addresses, and both signatures. The DMV form is convenient because it is already formatted correctly, but it is not the only option.

What if the buyer and I disagree about the sale price later?

The bill of sale is your written record of what you agreed to. If you both signed it showing a specific price, that is the documented agreement. This is why it is important to make sure the price is correct before signing and to keep your copy in a safe place.

Can I sell a vehicle without a bill of sale?

California does not legally require one, but it is strongly recommended. Without a bill of sale, you have no written proof of when you sold the vehicle or to whom. This can cause problems if the buyer does not register it, gets a ticket, or is in an accident.

Do I need to notarize the bill of sale?

No, California does not require notarization for a bill of sale. Both parties straightforward need to sign and date it. However, some people choose to have it notarized for extra proof that the signatures are genuine, especially in high-value sales.

What if the vehicle has a lien and the buyer wants to pay cash?

The buyer can pay you, and you use that money to pay off the lender and release the title. Alternatively, the buyer can pay the lender directly and you sign the title over once the loan is satisfied. The bill of sale should note that the vehicle has a lien and describe how it will be handled.