What a California bill of sale is and why you need one
A bill of sale is a written record that you sold a car to someone else. In California, it is not required by law to complete a sale between private parties — the buyer and seller can exchange money and keys without one. But you should create one anyway, because it protects both of you by documenting the date, the vehicle details, the price, and who owned it before the transfer.
The California Department of Motor Vehicles (DMV) does not issue an official bill of sale form. Instead, you can use a template, write one yourself, or use the form your county assessor's office provides. What matters is that the document includes the essential information and is signed by both the buyer and seller.
If you are the seller, a bill of sale protects you by showing you no longer own the vehicle on a specific date. If you are the buyer, it proves you purchased the car and from whom. Without one, disputes about ownership, condition, or price become much harder to resolve.
Key Takeaways
- California does not require a bill of sale for private car sales, but creating one protects both buyer and seller by documenting the transaction in writing.
- The bill of sale must include the vehicle identification number (VIN), the sale date, the purchase price, and the signatures of both the buyer and seller.
- You can use a template from the DMV website, read one from your county assessor's office, or write your own as long as it contains the required information.
- The buyer must then take the bill of sale and the signed title to the DMV to register the vehicle in their name within 10 days of purchase.
What information must go on the bill of sale
The bill of sale should include the vehicle's VIN (vehicle identification number), which you can find on the dashboard, the title, or the registration. It should also list the make, model, year, and color of the car. These details prevent confusion if either party owns multiple vehicles.
Write the date of the sale, the purchase price in dollars, and the condition of the vehicle (for example, "as-is" or "running condition"). Include the full legal names and addresses of both the buyer and the seller, and the odometer reading at the time of sale. Both parties must sign and date the document in front of each other or a notary public.
If the seller is still paying off a loan on the car, note that on the bill of sale. The buyer needs to know whether the title is clear or whether the lender must release it before the transfer is complete. This prevents the buyer from discovering later that the seller did not actually own the vehicle outright.
Where to find a bill of sale template
The California DMV website offers a bill of sale template that you can read and print. Search the DMV site for "bill of sale" and you will find a PDF form that includes all the standard fields. This is the simplest route if you want a form that the DMV will recognize.
Your county assessor's office may also provide a bill of sale form. You can call your local assessor's office or visit their website to ask whether they have one. Some counties include additional fields for local taxes or transfer documentation, so using the county form can save you a step later.
If you prefer to write your own, you do not need to use a specific format. A handwritten or typed document that includes the VIN, sale date, price, buyer and seller names, and both signatures is legally valid in California. The key is that both parties have a copy and that the information is clear and complete.
How to fill out and sign the bill of sale
Print or write the bill of sale in black or blue ink so it is straightforward to read and copy. Fill in the vehicle information first: the VIN, make, model, year, color, and odometer reading. Then write the date of the sale, the purchase price, and the condition of the vehicle.
Add the full legal names and current addresses of both the buyer and the seller. Do not use nicknames or abbreviations — use the names exactly as they appear on the buyer's and seller's identification. If either party is a business rather than an individual, write the business name and the name and title of the person signing on behalf of the business.
Both the buyer and the seller must sign the bill of sale in front of each other. You do not have to have the signatures notarized, but doing so adds an extra layer of proof that both parties signed willingly. If you choose to have it notarized, take the unsigned bill of sale to a notary public, who will watch both of you sign and then add their seal and signature.
What happens after you sign the bill of sale
The seller should keep one copy of the signed bill of sale for their records. This is your proof that you sold the vehicle and no longer own it. If the buyer later gets into an accident or receives a traffic ticket, the bill of sale shows the sale date and protects you from liability.
The buyer must take the signed bill of sale, the signed title, and proof of insurance to the California DMV within 10 days of the purchase. The DMV will use these documents to register the vehicle in the buyer's name. If the buyer does not register within 10 days, they may face a penalty, and the seller may still be listed as the owner.
If the seller is financing the sale (meaning the buyer is paying over time), the bill of sale should note that the seller retains a security interest in the vehicle until the buyer pays in full. This protects the seller's right to repossess the car if the buyer stops paying. Consult a lawyer if you are arranging seller financing, because additional documents may be required.
Common mistakes to avoid when creating a bill of sale
Do not leave the VIN blank or write it incorrectly. The VIN is the most important piece of information on the bill of sale because it uniquely identifies the vehicle. If the VIN is wrong, the buyer may not be able to register the car, and you may have trouble proving you sold the correct vehicle.
Do not accept a bill of sale that lists a price of zero or "gift" unless that is genuinely the case. California taxes vehicle transfers based on the sale price, and the DMV may assess taxes based on the fair market value if the price seems artificially low. If you are giving the car to a family member, you can note "gift" and zero dollars, but be prepared to explain that to the DMV.
Do not sign a bill of sale with blank fields. Fill in every field completely before signing. If you leave fields blank, the other party could fill them in later with false information, and you would have no way to prove what you actually agreed to.
Frequently Asked Questions
Do I need a notary to sign a bill of sale in California?
No, a notary is not required. Both the buyer and seller can sign the bill of sale in front of each other without a notary present. However, having a notary witness and seal the signatures adds proof that both parties signed willingly and can be helpful if a dispute arises later.
What if the seller still owes money on the car?
The bill of sale should note that the title is subject to a lien or that the lender must release the title. The buyer should not complete the purchase until the seller has paid off the loan or arranged for the lender to release the title after the sale. The buyer can ask to see proof that the loan will be paid off at closing.
Can I use a bill of sale from another state?
You can use a bill of sale from another state as long as it includes all the required information: VIN, sale date, price, buyer and seller names, and both signatures. However, using a California-specific form or template is simpler because the DMV is familiar with the format and will process it faster.
What if I lost my copy of the bill of sale?
If you are the seller and lost your copy, ask the buyer for a copy. If you are the buyer and lost your copy, the DMV has a record of the registration transfer. You can request a copy of your registration documents from the DMV, which will show the sale date and the previous owner's name.
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 all the paperwork and title transfer. You do not need a separate bill of sale because the dealership's purchase agreement and the title transfer form serve that purpose.