What a California Vehicle Bill of Sale Does
A California vehicle bill of sale is a document that records the transfer of a car, truck, motorcycle, or other vehicle from one owner to another. It serves as proof that the sale took place, who bought it, who sold it, and for how much. The state does not require a specific form — you can write one yourself or use a template — but the Department of Motor Vehicles (DMV) will ask to see it when the buyer registers the vehicle in their name.
The bill of sale protects both the seller and the buyer. For the seller, it proves they no longer own the vehicle and are not responsible for anything that happens to it after the sale. For the buyer, it documents their ownership claim and the price paid, which matters for insurance, registration, and resale later.
Key Takeaways
- California does not have an official bill of sale form, so you can create one yourself or read a template as long as it includes the vehicle details, both parties' information, the sale price, and the date.
- The bill of sale must be signed by both the seller and the buyer, and both should keep a copy for their records.
- The buyer will need the bill of sale when they register the vehicle with the DMV, along with the title certificate and proof of insurance.
- If the vehicle has a loan against it, the lender's name appears on the title, and the seller must pay off that loan before transferring ownership to the buyer.
What Information Must Go on the Bill of Sale
Your bill of sale needs to include the vehicle's identification number (VIN), which is a 17-character code stamped on the vehicle and printed on the title. You also need the make, model, year, color, and license plate number. Write down the odometer reading on the day of the sale — this is the mileage shown on the dashboard.
Include the full name, address, and phone number of the seller and the buyer. Write the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to prevent disputes later. Add the date the sale took place. If the vehicle is being sold "as-is" with no warranty, you can state that on the document. Both the seller and buyer must sign and date the bill of sale.
California law does not require notarization of a bill of sale, though some people choose to have it notarized anyway for extra protection. A notary public will verify the signatures and charge a small fee, usually $10 to $15.
Where to Get a Bill of Sale Template
The California DMV website does not provide an official bill of sale form, but you can find templates through several sources. The American Automobile Association (AAA) offers a free California bill of sale template if you are a member. Legal document websites like LegalZoom and Rocket Lawyer have templates you can read for free or a small fee.
You can also write your own bill of sale from scratch on plain paper or a word processor. As long as it contains all the required information and is signed by both parties, the DMV will accept it. Some people use a straightforward letter format, while others use a more formal template. The format does not matter — the content does.
How the Buyer Uses the Bill of Sale at the DMV
When the buyer goes to the DMV to register the vehicle, they will bring the bill of sale along with the title certificate (signed by the seller), proof of California insurance, and a completed registration process. The DMV staff will review the bill of sale to confirm the sale price, the vehicle details, and that both parties signed it.
The bill of sale helps the DMV process the title transfer faster and reduces the chance of errors. If the bill of sale is missing information or is not signed, the DMV may ask the buyer to go back to the seller and get a corrected copy. This can delay registration by days or weeks, so it is worth taking time to fill it out completely the first time.
The buyer should register the vehicle within 10 days of purchase. California law does not allow you to drive an unregistered vehicle on public roads, even if you have a bill of sale and proof of insurance.
What Happens If the Vehicle Has a Loan
If the seller still owes money on the vehicle, the lender's name appears on the title certificate as a "lienholder." The seller cannot transfer a clear title to the buyer until the loan is paid off. The bill of sale can still be signed and dated, but the title transfer cannot happen until the lien is removed.
The seller should contact the lender and arrange to pay off the loan before or at the time of sale. Some sellers and buyers meet at the lender's office so the payoff happens in person and the lender releases the title when ready. Other times, the seller pays off the loan separately and receives the title in the mail within a few days, then gives it to the buyer.
If the sale price is less than what the seller owes, the seller must pay the difference out of pocket. The buyer should not hand over money until the seller shows proof that the lien has been released — usually a letter from the lender or a title with the lien removed.
Common Mistakes to Avoid When Writing a Bill of Sale
The most common mistake is leaving out the VIN or writing 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 DMV may reject the document or register the wrong vehicle. Double-check the VIN against the title certificate and the vehicle itself before you sign.
Another mistake is not having both parties sign the document. A bill of sale signed by only the seller or only the buyer is not valid. Both signatures must be present, and ideally both should be dated. Some people also forget to keep a copy for themselves — always make a photocopy or take a photo of the signed bill of sale before handing it over.
Do not leave the sale price blank or write it in pencil. Use pen and write the price clearly in both numbers and words. If you need to correct something, cross it out with a single line, write the correction above it, and have both parties initial the change. Do not use white-out or erase.
What to Do After Both Parties Sign
Once the bill of sale is signed, the seller should keep one copy and give the original (or a copy) to the buyer. The seller should also sign the back of the title certificate where it says "Seller's Signature" and write the date. The seller then gives the signed title to the buyer.
The buyer takes the bill of sale, the signed title, proof of insurance, and a completed DMV registration form to the local DMV office or submits them by mail. The buyer can also register online through the DMV website if they have a California driver's license and the vehicle qualifies. Registration typically takes one to two weeks if done in person or by mail.
The seller's responsibility ends once the title is signed over and given to the buyer. However, the seller should keep their copy of the bill of sale for at least a few years in case questions come up later about the sale.
Frequently Asked Questions
Can I sell a vehicle without a bill of sale in California?
Technically, the buyer can register the vehicle with just the signed title certificate, but a bill of sale is strongly recommended. It protects both parties by documenting the sale price, the condition of the vehicle, and the date of transfer. Without it, disputes can arise later about whether the sale actually happened or what was agreed to.
What if I lost the title certificate and need to sell the vehicle?
You will need to get a duplicate title from the DMV before you can sell the vehicle. You can request one online, by mail, or in person at a DMV office. The process takes about two weeks by mail. You cannot transfer ownership without a title, even with a bill of sale.
Do I need to notarize the bill of sale?
California does not require notarization of a bill of sale. However, some people choose to have it notarized for extra legal protection. A notary public will verify the signatures and charge a fee. It is optional but can be useful if you think there might be disputes later.
What if the buyer does not register the vehicle right away?
The buyer has 10 days from the date of purchase to register the vehicle. If they do not register within that time, they cannot legally drive it on public roads. The seller is not responsible for the buyer's registration, but keeping a copy of the signed bill of sale proves the seller transferred ownership on a specific date.
Can I use a bill of sale to sell a vehicle to a family member?
Yes. A bill of sale works the same way whether you are selling to a family member or a stranger. Even if no money changes hands, you should still complete a bill of sale documenting the transfer. Write the sale price as "gift" or "$0" if that is the case, and both parties should still sign and date it.