A bill of sale is a written record that you and the seller sign to prove who owned the car and who owns it now
A bill of sale is a document that shows the transfer of ownership from one person to another. When you buy a used car from a private seller, a bill of sale creates a paper trail proving the sale happened, what was paid, and the condition of the vehicle at the time of transfer. It protects both you and the seller by documenting the transaction in writing.
The bill of sale is separate from the car's title — the legal document issued by your state that proves ownership. The bill of sale is what you use to show the Department of Motor Vehicles (DMV) or your state's equivalent that a sale occurred. Without it, the DMV may not transfer the title into your name, and you could face problems registering the vehicle or proving you own it.
Most states do not require a bill of sale by law, but many DMVs will not process a title transfer without one. Some states have their own official bill of sale form; others accept any written document that contains the required information. A few states — including Maryland, Michigan, and Virginia — do require a bill of sale for all private vehicle sales.
Key Takeaways
- A bill of sale documents the sale of a car and is usually required by the DMV to transfer the title into your name, even if your state does not legally mandate one.
- The bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the buyer and seller.
- Some states provide an official bill of sale form on the DMV website; others accept any written document with the required information.
- Both the buyer and seller should keep a signed copy for their records, and the buyer should bring the original to the DMV when registering the vehicle.
What information must go on a bill of sale
A bill of sale should contain the vehicle's VIN (Vehicle Identification Number), which is a 17-character code that uniquely identifies the car. You can find the VIN on the dashboard, on the title document, or on insurance paperwork. The bill of sale must also include the make, model, year, and color of the vehicle, though the VIN alone is usually enough for the DMV to identify it.
The document must show the sale price — the actual amount paid, not a reduced amount for tax purposes. Some sellers and buyers try to list a lower price to reduce sales tax, but this is tax fraud and can result in fines or legal action. The bill of sale should also state the date of the sale and include the full names, addresses, and signatures of both the buyer and the seller.
Many bill of sale forms also ask for the odometer reading at the time of sale, the condition of the vehicle (for example, "as-is" or with specific defects noted), and whether any warranties are included. If the seller is disclosing known problems — a transmission issue, rust, a check engine light — writing these on the bill of sale protects you by creating a record that you knew about them before you bought the car.
Where to find a bill of sale form for your state
Your state's DMV website usually has an official bill of sale form, often called a "Notice of Sale" or "Vehicle Sale Form." Search "[your state] DMV bill of sale" to find it. Some states, like California and Texas, provide fillable PDF forms that you can read and print. Others, like New York, have a specific form that must be used for all private sales.
If your state does not provide an official form, you can use a generic bill of sale template from a legal document website or create your own. The key is that it includes all the required information: VIN, sale price, date, buyer and seller names and addresses, and both signatures. A handwritten bill of sale is legally valid in most states as long as it contains this information and is signed by both parties.
Before you use any form, check your state's DMV website or call the DMV to confirm what the form should include. Some states have specific wording requirements or ask for information that generic templates do not include. A few minutes of research now can prevent delays when you try to register the car.
How to fill out and sign a bill of sale
Both the buyer and seller should fill out the bill of sale together, ideally at the time of the sale. Print or write out the form clearly so that all information is legible. Enter the VIN exactly as it appears on the title or the vehicle itself — a typo can cause problems at the DMV. Write out the sale price in both numbers and words (for example, "Five Thousand Dollars ($5,000)") to prevent disputes.
The buyer and seller should each sign and date the form in front of each other. Some states require the signatures to be notarized, meaning a notary public must witness the signing and stamp the document. Check your state's requirements before you sign; if notarization is required and you do not do it, the DMV will reject the form. A notary is usually available at a bank, library, or UPS store for a small fee.
Make copies of the signed bill of sale for both parties. The buyer should keep the original to bring to the DMV when registering the vehicle. The seller should keep a copy for their records, especially if the car had an outstanding loan or lien that needs to be cleared before the title transfers.
What happens if the seller will not sign a bill of sale
If a private seller refuses to sign a bill of sale, that is a red flag. A legitimate seller has no reason to avoid documenting the sale in writing. A refusal could mean the seller does not actually own the car, the car has an outstanding loan or lien, or the seller is trying to hide the transaction for tax or legal reasons.
Do not buy the car if the seller will not sign a bill of sale. Without it, you will not be able to register the vehicle in your name, and you will have no legal proof that you own it. If you have already paid for the car and the seller refuses to sign, contact a lawyer or your state's attorney general's office for guidance on recovering your money.
If you are buying from a dealership rather than a private seller, the dealership will provide all necessary paperwork, including a bill of sale or purchase agreement. Dealerships are required by law to provide these documents, and they handle the title transfer process as part of the sale.
Bill of sale versus title: what is the difference
The bill of sale is a record of the transaction — proof that the sale happened and what was paid. The title is the legal ownership document issued by the state. The title shows who currently owns the car and whether there are any liens (claims by lenders or creditors) against it.
When you buy a car, the seller gives you the bill of sale and the title. You use the bill of sale to prove to the DMV that you bought the car. The DMV then issues a new title in your name. Until the new title is issued, the old title still shows the seller as the owner, even though you have the bill of sale proving you bought it.
Some states allow you to drive the car for a short period (usually 10 to 30 days) with just the bill of sale and proof of insurance while you wait for the new title to arrive. Check your state's rules on temporary registration or temporary tags to see how long you can drive before the new title must be in your name.
Common mistakes to avoid when using a bill of sale
Do not leave any fields blank on the bill of sale. If a field does not explore — for example, if there are no known defects — write "none" rather than leaving it empty. Blank spaces can be filled in later by someone else, which could change the terms of the sale.
Do not use a bill of sale from a different state. Each state's DMV may have different requirements, and using the wrong form can cause your title transfer to be rejected. Always use your state's official form or a form that meets your state's specific requirements.
Do not sign the bill of sale before all information is filled in. Make sure the VIN, sale price, date, and both names are complete and correct before you sign. Once you sign, you are confirming that all the information is accurate.
Do not assume the seller will handle the title transfer. In most states, the seller must sign the title and the bill of sale, but the buyer is responsible for taking both documents to the DMV to register the car. If the seller does not sign the title, you will not be able to transfer ownership, even with a signed bill of sale.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealership?
No. Dealerships provide a purchase agreement or sales contract that serves the same purpose as a bill of sale. The dealership handles the title transfer and registration as part of the sale. You will not need a separate bill of sale document.
Can I use a bill of sale from the internet, or does it have to be my state's official form?
Most states accept a generic bill of sale template as long as it includes the required information: VIN, sale price, date, buyer and seller names and addresses, and both signatures. However, some states have specific forms or wording requirements. Check your state's DMV website first to see if an official form is required or recommended.
What if I lose the bill of sale after I buy the car?
If you have already registered the car in your name, you do not need the bill of sale anymore — the title is your proof of ownership. If you have not yet registered the car and you lose the bill of sale, ask the seller for another signed copy. If the seller will not provide one, contact your DMV to ask what documents you can use instead.
Does the bill of sale have to be notarized?
Most states do not require notarization, but a few do. Check your state's DMV website or call the DMV to confirm. If notarization is required and you do not do it, the DMV will reject the bill of sale and you will not be able to transfer the title.
What if the sale price on the bill of sale is different from what I actually paid?
The bill of sale must show the actual amount paid. If you paid $5,000, the bill of sale should say $5,000, even if you negotiated a lower price for tax purposes. Listing a false price is tax fraud. If there is a discrepancy, correct it before you sign, and make sure both parties agree to the corrected amount.