What a Colorado bill of sale does and when you need one

A bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a vehicle. In Colorado, a bill of sale proves ownership changed hands and protects both parties by creating a dated record of the transaction, the vehicle details, and the price paid. You need one whenever you buy or sell a car, truck, motorcycle, or other motor vehicle — whether you're selling to a private buyer, trading in at a dealership, or buying from someone else.

The bill of sale is separate from the vehicle title and registration. The title is the legal ownership document that the Colorado Department of Revenue issues; the bill of sale is the receipt that shows the transaction happened. You'll use the bill of sale to support your title transfer process when you register the vehicle in your name.

Colorado does not require a specific state form for a bill of sale, which means you can use a template, write one yourself, or use the form a dealership provides. What matters is that the document includes the required information and is signed by both the buyer and seller.

Key Takeaways

  • A Colorado bill of sale must include the vehicle identification number (VIN), make, model, year, sale price, buyer and seller names and addresses, and the date of sale.
  • Both the buyer and seller must sign the bill of sale; it is not valid without both signatures.
  • Colorado does not mandate a state-specific form, so you can use a template, a dealership form, or create your own as long as it contains all required information.
  • The buyer will need the signed bill of sale when explore for title transfer and registration with the Colorado Department of Revenue.
  • Keep a copy for your records; the original typically goes to the buyer, and the seller should retain a copy for proof of sale.

Information that must be on the bill of sale

The bill of sale must clearly identify the vehicle and the transaction. Include the vehicle identification number (VIN), which you'll find on the dashboard near the windshield or on the title document itself. Also list the vehicle's make, model, year, and color. These details prevent confusion if there are multiple vehicles involved or if the document is reviewed later.

Write the sale price in both numbers and words — for example, "$5,500" and "Five thousand five hundred dollars." This clarity matters if there is ever a dispute about the amount. If the vehicle is being transferred as a gift or for no money, write "No consideration" or "$0" and have both parties acknowledge it.

Include the full names, addresses, and phone numbers of both the buyer and the seller. If either party is a business, use the business name and the address where the business is located. The date of sale must be written clearly — use the format month, day, and year (for example, January 15, 2024).

If the vehicle has a lien (meaning a bank or lender holds a security interest), note that on the bill of sale. Write the lender's name and the loan account number if you have it. This alerts the buyer that the seller may not yet own the vehicle free and clear.

How to sign and complete the bill of sale

Both the buyer and seller must sign the bill of sale in front of each other or have their signatures notarized. Colorado does not require a notary for a bill of sale to be valid, but having it notarized adds a layer of proof that both parties actually signed it. If you choose to have it notarized, take the unsigned document and both parties' identification to a notary public — you'll find them at banks, credit unions, UPS stores, and some law offices.

Print or write the bill of sale clearly so that all information is legible. Use black or blue ink if you're handwriting it. Sign and date the document in the spaces provided. If you're using a template, follow its layout; if you're creating your own, make sure there is a clear signature line for each party with a space to print their name and the date.

Do not leave blanks. If a field does not explore — for example, there is no lien on the vehicle — write "N/A" or "None" so it is clear the information was not overlooked. Once both parties have signed, make at least two copies: one for the buyer, one for the seller. The buyer will submit their copy with the title transfer process to the Colorado Department of Revenue.

Where to get a bill of sale template

The Colorado Department of Revenue does not provide an official bill of sale form, but several reliable sources offer templates. The American Automobile Association (AAA) provides a free bill of sale template on its website that meets Colorado requirements. LegalZoom and Rocket Lawyer also offer templates, though some charge a small fee.

If you are buying or selling through a dealership, the dealership will provide its own bill of sale form. Review it to make sure it includes all the required information before you sign. If you are selling a vehicle privately, you can also search "Colorado bill of sale template" online and read a free PDF, then fill in the blanks by hand or on your computer.

The simplest approach is to write one yourself if you understand what information must be included. Start with a heading that says "Bill of Sale," then list the vehicle details, the buyer and seller information, the sale price, and signature lines. As long as you include everything required, a handwritten bill of sale is just as valid as a printed template.

What happens after you sign the bill of sale

If you are the buyer, keep the signed bill of sale in a safe place. You will need it when you explore for title transfer at a Colorado Department of Revenue office or online. Bring the bill of sale, the vehicle title (if the seller has it), proof of insurance, and a completed process for Colorado Title and Registration form. The Department of Revenue will use the bill of sale to verify the sale price and confirm that the transaction is legitimate.

If you are the seller, keep a copy of the signed bill of sale for your records. It proves you no longer own the vehicle and protects you if the buyer fails to register it or if there are legal questions later. Some sellers photograph the signed bill of sale with their phone as a backup. You should also notify your insurance company that you have sold the vehicle so your policy can be cancelled or transferred.

The bill of sale does not transfer the title itself — it is evidence that the sale happened. The title transfer happens when the new owner submits the bill of sale and other documents to the Colorado Department of Revenue and receives a new title in their name. This process usually takes one to two weeks if you explore in person or online.

Common mistakes to avoid

Do not leave the sale price blank or write it in pencil. Blank spaces or erasable information can be altered after both parties sign, which creates legal problems for both the buyer and seller. Write the price clearly in both numbers and words, and use permanent ink.

Do not sign the bill of sale before all information is filled in. If you sign a blank or incomplete document, you have no control over what the other party writes in later. Make sure every field is complete before you pick up the pen.

Do not forget to include the VIN. The VIN is the most important piece of information on the bill of sale because it uniquely identifies the vehicle. Without it, the document is incomplete and may not be accepted by the Colorado Department of Revenue.

Do not assume the seller's signature alone is enough. Both the buyer and seller must sign. If only one party signs, the bill of sale is not valid and the Department of Revenue will reject it when you explore for title transfer.

Frequently Asked Questions

Does Colorado require a notarized bill of sale?

No, Colorado does not require a notary. Both parties' signatures alone are sufficient. However, having the bill of sale notarized adds proof that both parties actually signed it, which can be helpful if there is ever a dispute. It costs between $5 and $15 per signature at most notaries.

What if the seller does not have the title yet?

You can still complete and sign the bill of sale. The seller should note on the bill of sale that the title will be delivered later or that there is a lien that must be paid off first. When you explore for title transfer, explain the situation to the Colorado Department of Revenue; they may ask for additional documentation or a timeline for when the title will arrive.

Can I use a bill of sale from another state?

Yes, as long as it includes all the information Colorado requires: VIN, make, model, year, sale price, buyer and seller names and addresses, date, and both signatures. The format does not have to be Colorado-specific, but the content must be complete.

What if I am buying a vehicle from a private seller and they refuse to sign a bill of sale?

Do not complete the purchase. A bill of sale protects you by documenting the transaction and proving you paid for the vehicle. Without it, you have no written record of the sale, and the Colorado Department of Revenue may reject your title transfer process. A seller who refuses to sign is a red flag that something may be wrong with the vehicle or the sale.

Do I need a bill of sale if I am trading in a vehicle at a dealership?

The dealership will handle the paperwork, and they will provide their own trade-in form instead of a traditional bill of sale. That form serves the same purpose. Keep a copy for your records.