What a bill of sale does and why you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. It documents the date of the sale, the vehicle's details (make, model, year, VIN), the sale price, and the names and signatures of both the buyer and seller. The document protects both parties by creating proof of the transaction.
When you buy or sell a car privately—not through a dealership—a bill of sale becomes your evidence of ownership transfer. It shows the state's motor vehicle department that money changed hands and that the previous owner agreed to let the vehicle go. Without it, disputes can arise about who owns the car, whether the sale actually happened, or what was promised at the time of purchase.
Many states do not require a bill of sale by law, but having one is still the safer choice. Some states do require it before you can register the vehicle in your name. Even where it is optional, lenders, insurance companies, and courts treat it as the standard proof of a private sale.
Key Takeaways
- A bill of sale is a written record of a vehicle sale that protects both buyer and seller by documenting the transaction details, price, and both parties' signatures.
- Free templates are available from state motor vehicle departments, legal document websites, and consumer protection agencies, and most follow the same basic structure.
- The document should include the vehicle's VIN, the sale price, the date of sale, and the full legal names and signatures of both buyer and seller.
- Some states require a bill of sale before registration; others do not, but having one protects you regardless of whether your state mandates it.
- After both parties sign, keep a copy for your records and provide the other party with a copy; the original typically goes with the vehicle's title.
Where to find a free bill of sale template
Your state's motor vehicle department website usually offers a free bill of sale form designed to meet that state's requirements. Search "[your state] motor vehicle department bill of sale" or "[your state] DMV bill of sale template." These official forms are the safest choice because they include all the fields your state's registration office expects to see.
If your state does not provide one, legal document websites such as LegalZoom, Rocket Lawyer, and Nolo offer free templates that work in most states. Consumer protection agencies and nonprofit legal aid organizations also post free versions. The structure is similar across all of them: seller information, buyer information, vehicle details, sale price, date, and signature lines.
You can also create a bill of sale from scratch using a word processor if you follow the basic format. The key is that both parties must sign and date it, and both must keep a copy. Handwritten bills of sale are legally valid in most states as long as the essential information is there and both parties have signed.
What information to include on the bill of sale
Start with the vehicle identification number (VIN), which appears on the driver's side dashboard and on the title. Include the year, make, model, and color. Add the odometer reading at the time of sale—this protects the buyer by documenting the mileage and helps prevent odometer fraud.
Write the sale price in both numbers and words to avoid confusion. For example: "$5,500 (five thousand five hundred dollars)." Include the date of the sale. Add the full legal names, addresses, and phone numbers of both the buyer and the seller. Some templates ask for driver's license numbers; this is optional but adds another layer of verification.
If the vehicle has a lien (a loan against it), note that on the bill of sale. State whether the seller is responsible for paying off the lien or whether the buyer is taking on the debt. This prevents misunderstandings later. At the bottom, both parties sign and print their names, and both date the document.
How to fill out and sign the bill of sale
Print the template or open it in a word processor and fill in all the blanks with accurate information. Use black or blue ink if you are printing and handwriting; avoid pencil, which can be altered. Type everything in capital letters if the form requests it, or follow the template's formatting instructions.
Both the buyer and seller must sign the document in person if possible. Some states allow notarization, which adds legal weight but is not always required. Check your state's motor vehicle department website to see whether notarization is recommended or necessary. If you are buying or selling out of state, notarization may be required by the other state's rules.
After signing, make at least two copies—one for the buyer, one for the seller. If the vehicle has a title, the bill of sale often goes in the title folder when you register the car. Keep your copy in a safe place with other vehicle records. If a dispute arises later, you will have proof of the sale date, price, and both parties' agreement.
State-specific requirements and variations
Most states accept a standard bill of sale format, but some have specific rules about what must appear on the form. A few states require the bill of sale to be notarized; others do not. Some states ask for the odometer reading; others do not. A handful of states require the seller to provide a vehicle history report or a pre-sale inspection report alongside the bill of sale.
Before you sign, visit your state's motor vehicle department website and search for "bill of sale requirements" or "private sale documentation." This takes five minutes and tells you exactly what your state expects. If your state provides an official form, use that one—it is may provide to meet all local requirements. If you are buying a car from another state or selling to someone out of state, check both states' rules.
Some states distinguish between a bill of sale and an "assignment of title." The assignment is the section on the back of the title where the seller signs over ownership. A bill of sale is separate and serves as a backup record. Having both protects you further.
Common mistakes to avoid when using a bill of sale
Do not leave blanks. Every field should be filled in, even if you write "N/A" or "unknown." Blank spaces can be filled in later by someone else, which creates legal risk. Do not use white-out or cross out information and initial it; print a new copy instead. Alterations make the document look unreliable in a dispute.
Do not forget to include the VIN. This is the single most important piece of information because it uniquely identifies the vehicle. Without it, the bill of sale could theoretically explore to any car. Do not sign the document unless both parties are present and agree to all the terms. A bill of sale signed by only one party is not valid.
Do not assume the buyer or seller will keep their copy safe. Make multiple copies before you hand over the original. Do not wait to sign the bill of sale until after the money has changed hands and the keys have been handed over—sign it as part of the transaction, at the same time. This prevents disputes about whether the sale was final.
What happens after you sign the bill of sale
If you are the buyer, take the bill of sale and the title to your state's motor vehicle department to register the vehicle in your name. Bring your driver's license and proof of insurance. The registration process varies by state, but the bill of sale is usually one of the required documents. Some states allow you to register online; others require an in-person visit.
If you are the seller, keep your copy of the signed bill of sale for your records. Some states ask the seller to notify the motor vehicle department that the vehicle has been sold, especially if the buyer does not register it right away. This protects you from liability if the buyer gets into an accident or racks up parking tickets before transferring the title. Check your state's rules on seller notification.
Both parties should keep their copies for at least three to five years. If a dispute arises about the sale price, the condition of the vehicle, or who owned it at a particular time, the bill of sale is your proof. Insurance companies and courts rely on it to settle disagreements.
Frequently Asked Questions
Do I have to use an official state form, or can I use a template from the internet?
You can use a template from the internet, but using your state's official form is safer because it is designed to meet your state's specific requirements. If your state does not provide an official form, a template from a reputable legal document website works fine. Either way, make sure both parties sign and date it.
What if the seller does not want to sign a bill of sale?
A seller who refuses to sign a bill of sale is a red flag. It suggests they may not own the vehicle outright, may have a lien against it, or may be trying to hide something. Do not complete the purchase without a signed bill of sale. If the seller refuses, walk away from the deal.
Can I handwrite a bill of sale instead of printing one?
Yes, a handwritten bill of sale is legally valid in most states as long as it includes all the required information, is signed and dated by both parties, and is legible. Use black or blue ink and write clearly. Handwritten bills of sale are common in private sales and are accepted by most motor vehicle departments.
Do I need to get the bill of sale notarized?
Notarization is not required in most states, but it adds legal weight to the document. A few states recommend or require it for private vehicle sales. Check your state's motor vehicle department website to see whether notarization is expected. If you are buying or selling across state lines, notarization may be required by one of the states involved.
What if I lose my copy of the bill of sale after the sale?
Ask the other party for a copy. If you cannot reach them, contact your state's motor vehicle department—they may have a record of the registration transfer. If you are the seller and need proof you sold the vehicle, your state's department can sometimes provide documentation of the title transfer. Keep your copy in a safe place with other important documents.