What a Colorado bill of sale is and why you need one
A bill of sale is a written record that documents the transfer of ownership of a motor vehicle from one person to another. In Colorado, it serves as proof that you bought or sold a vehicle and establishes the terms of that transaction — price, date, vehicle details, and the names and signatures of both parties.
You need a bill of sale whenever you buy or sell a vehicle privately (not through a dealership). It protects both the buyer and seller by creating a paper trail. For the buyer, it proves you paid for the vehicle and when. For the seller, it shows you transferred ownership and received payment, which protects you if the vehicle is later involved in an accident or crime.
Colorado does not require a specific state form for a bill of sale — you can write one yourself or use a template — but the document must contain certain information to be valid. The Colorado Department of Revenue Motor Vehicles Division recognizes bills of sale as supporting documents when you register a vehicle or transfer the title.
Key Takeaways
- A bill of sale documents the sale of a vehicle and must include the names and signatures of both buyer and seller, the vehicle identification number (VIN), the sale price, and the date of the transaction.
- Colorado does not mandate a specific form, but you can read templates from the Colorado Department of Revenue website or create your own as long as it contains all required information.
- Both the buyer and seller should sign and keep a copy of the bill of sale before the title transfer happens at the Colorado Department of Revenue.
- The bill of sale is not the same as the title; you will still need to transfer the vehicle title through the Colorado Department of Revenue to complete the ownership change.
Information that must be on the bill of sale
Your Colorado bill of sale must include the following details to be recognized by the state:
- Full name, address, and phone number of the seller
- Full name, address, and phone number of the buyer
- Vehicle Identification Number (VIN) — found on the dashboard or in the title document
- Year, make, model, and color of the vehicle
- Odometer reading at the time of sale
- Sale price (the actual amount paid, not "as is" or blank)
- Date of the sale
- Signatures of both the buyer and seller
- A statement that the seller owns the vehicle free and clear, or disclosure of any liens (outstanding loans) against it
If there is a lien on the vehicle — meaning a bank or lender still holds a claim to it — you must disclose this on the bill of sale. The buyer needs to know before purchasing. If the seller is paying off the lien at closing, note that on the document as well.
Do not leave any fields blank. If a field does not explore, write "N/A" or "not applicable." Blank spaces can raise questions when you submit the bill of sale to the Colorado Department of Revenue.
How to create and sign the bill of sale
Start by obtaining a bill of sale template. You can read one from the Colorado Department of Revenue website, use a general template from a legal document site, or write one yourself using the required information listed above. The format does not matter as long as all required fields are present.
Fill in all information clearly and legibly. Use black or blue ink if you are printing and signing by hand. Type the document if possible — handwritten bills of sale are valid but harder to read if there is ever a dispute. Make sure both the buyer and seller review the document carefully before signing.
Both parties must sign and date the bill of sale in front of each other. Colorado does not require a notary public to witness the signature, but having the document notarized adds an extra layer of protection and is sometimes requested by lenders or title companies. If you choose to have it notarized, both the buyer and seller should be present at the notary's office.
Make at least three copies: one for the seller, one for the buyer, and one to submit with the title transfer process to the Colorado Department of Revenue. Keep your copy in a safe place.
What happens after you sign the bill of sale
Signing the bill of sale does not transfer the title. It only documents the sale. To complete the ownership transfer, the buyer must submit an process to the Colorado Department of Revenue Motor Vehicles Division within 10 days of the purchase.
The buyer will need to bring or mail the following to the Colorado Department of Revenue:
- The signed bill of sale
- The original title certificate (signed by the seller)
- A completed process for Colorado Title (Form MV-14)
- Proof of insurance
- Payment for the title transfer fee (the amount varies based on the vehicle's value)
The seller should keep their signed copy of the bill of sale as proof they no longer own the vehicle. If the vehicle is later involved in an accident or legal issue, the bill of sale and the date you transferred ownership protect you from liability.
Common mistakes to avoid
The most common error is leaving the sale price blank or writing "as is" instead of an actual dollar amount. The Colorado Department of Revenue needs the sale price to calculate the title transfer fee and assess whether the transaction is legitimate. A missing price can delay or reject the title transfer.
Another mistake is having only one party sign. Both the buyer and seller must sign the bill of sale for it to be valid. If one person signs on behalf of the other, that person must have written power of attorney, and a copy of that document should be attached.
Do not assume the bill of sale replaces the title. Some sellers think signing a bill of sale means the title is transferred. It does not. The title must be signed over separately and submitted to the Colorado Department of Revenue. Until that happens, the seller remains the legal owner in the state's records.
Avoid selling a vehicle with an outstanding lien without disclosing it. If you owe money to a lender, that lender has a legal claim to the vehicle. Selling it without paying off the loan or telling the buyer about it can result in the lender repossessing the vehicle from the new owner.
If you are buying from a private seller
As a buyer, insist on a bill of sale before you hand over money. Do not rely on a verbal agreement or a text message. A written bill of sale protects you by documenting what you paid, when you paid it, and what vehicle you purchased.
Before you sign, verify that the seller's name matches the name on the title. If it does not, ask why. The seller should be the person listed as the owner on the title certificate. If someone else is signing on their behalf, request written proof of their authority to do so.
Check the odometer reading on the bill of sale against the actual mileage on the vehicle. Odometer fraud is illegal, and documenting the mileage at the time of sale protects you. If the odometer reading seems inconsistent with the vehicle's age or condition, ask the seller to explain.
Ask the seller to disclose any accidents, repairs, or mechanical issues. While this is not required to be on the bill of sale, Colorado law requires sellers to disclose known defects. Get this in writing if possible, or at least have a witness present when the seller tells you about any issues.
If you are selling a private vehicle
As a seller, prepare the bill of sale before the buyer arrives with payment. Do not wait until the last minute. Having the document ready shows you are organized and protects both parties.
Verify the buyer's identity. Ask for a driver's license and write down their full legal name and address exactly as it appears on the license. Do not accept a nickname or informal name on the bill of sale.
Be honest about the vehicle's condition and history. Disclose any accidents, major repairs, or mechanical problems you know about. This protects you from liability after the sale and prevents disputes later.
If you still owe money on the vehicle, contact your lender before the sale. Ask how to pay off the loan at closing and whether the lender will release the title once the loan is paid. Some lenders require the payoff to happen through their office. Do not sign the title over to the buyer until your lender confirms the loan is paid in full and the lien is removed.
Frequently Asked Questions
Does Colorado require a notary on a bill of sale?
No, Colorado does not require a notary public to witness or notarize a bill of sale. However, having it notarized adds legal weight and can prevent disputes later. If you are concerned about the transaction or the buyer, consider having it notarized at a bank, title company, or notary service.
What if the seller will not sign the bill of sale?
Do not buy the vehicle. A seller who refuses to sign a bill of sale is a major red flag. It suggests they may not own the vehicle, may have an outstanding lien they are hiding, or may be trying to avoid a paper trail. Walk away from the deal.
Can I use a bill of sale from another state?
Yes, but it must contain all the information Colorado requires. If a template from another state is missing any required fields, add them before both parties sign. The Colorado Department of Revenue will accept any bill of sale that includes the vehicle details, sale price, date, and signatures of both parties.
How long is a bill of sale valid in Colorado?
A bill of sale does not expire, but the buyer should submit the title transfer process to the Colorado Department of Revenue within 10 days of the purchase. Waiting longer can result in late fees or complications with registration and insurance.
What if I lost my copy of the bill of sale?
Contact the other party and ask for a copy. If you cannot reach them, you can request a copy of the title transfer record from the Colorado Department of Revenue using the vehicle's VIN. The state keeps records of all title transfers, though there may be a fee for the request.