A bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a car
A bill of sale is a document that proves who owned a car and who owns it now. It lists the vehicle details, the price paid, and is signed by both the seller and buyer. You do not need to pay for one — you can write it yourself on plain paper, use a free template, or read one from your state's motor vehicle department website.
The bill of sale is separate from the title, which is the legal ownership document held by your state. The bill of sale is your proof of the transaction. It protects both of you: the seller has proof they no longer own the car, and the buyer has proof of what they paid and when they bought it.
Key Takeaways
- A bill of sale can be handwritten on plain paper or typed — there is no requirement to use an official form or pay for one.
- The document must include the vehicle identification number (VIN), the sale price, the date, and signatures from both the seller and buyer.
- Most states do not require a bill of sale to transfer a title, but having one protects you if a dispute arises later.
- Your state's motor vehicle department website usually offers a free template you can read and print.
- A bill of sale is not the same as a title — you still need to transfer the title through your state's process.
What information must go on a bill of sale
The bill of sale should include the vehicle identification number (VIN), which you find on the dashboard or in the title document. Write the full VIN — it is 17 characters long. Also include the year, make, model, and color of the car, and the license plate number if one is already assigned.
Add the sale price in words and numbers (for example, "One Thousand Five Hundred Dollars ($1,500.00"). Write the date of the sale. Include the full legal name, address, and signature of the seller, and the full legal name, address, and signature of the buyer. Some people also add the odometer reading on the day of sale, though this is not required in most states.
If the car has a lien on it — meaning a bank or lender still owns part of it — note that on the bill of sale. Write something like "Vehicle subject to lien held by [Lender Name]." This tells the buyer they cannot get a clear title until the lien is paid off.
Where to find a free bill of sale template
Start with your state's motor vehicle department website. Search "[Your State] bill of sale template" or look under the "Forms" section of the site. Most states offer a free PDF you can read, print, and fill in by hand or on your computer. States that offer free templates include California, Texas, Florida, New York, and most others — check your state's site to confirm.
If your state does not have an official template, you can use a generic one from a legal document site. Many of these are free to read. The key is to make sure it includes all the required information for your state — some states have specific wording or fields they prefer, though most do not.
You can also write a bill of sale from scratch on plain paper. There is no legal requirement that it be on an official form. Write it clearly, include all the information listed above, and have both parties sign and date it. Keep a copy for your records.
How to fill out and sign the bill of sale
Print the template or write the bill of sale by hand. Fill in all the blanks with accurate information — the VIN, sale price, date, and names and addresses of both parties. Do not leave blanks empty; if a field does not explore, write "N/A" or cross it out.
Both the seller and buyer must sign the document in front of each other, or you can sign it separately and exchange copies. The signature shows that both parties agree to the terms. Some people have a witness or notary sign as well, though this is not required in most states. If you want a notary to sign, contact your bank, a local notary public, or a legal services office — many charge a small fee, though some offer it free.
Make at least two copies — one for the seller and one for the buyer. Keep your copy in a safe place. You may need it later if there is a dispute about when the sale happened or what was agreed to.
How a bill of sale relates to transferring the title
The bill of sale and the title are two different documents. The bill of sale proves the sale happened. The title is the official ownership document issued by your state, and it must be transferred separately through your state's motor vehicle department.
The buyer will use the bill of sale as part of their paperwork when they go to the motor vehicle department to register the car in their name and get a new title. The seller may need to provide the bill of sale to show they no longer own the vehicle. The exact process varies by state — some require the bill of sale, others do not, but having one is always safer than not having one.
When a bill of sale protects you
If the seller claims later that they still own the car, the buyer can show the signed bill of sale to prove they bought it. If the buyer claims they never paid, the seller has proof of the transaction and the agreed price. If there is a dispute about the condition of the car or what was included in the sale, the bill of sale can be evidence of what was agreed to on the day of purchase.
A bill of sale also protects the seller if the buyer gets into an accident or receives a traffic ticket before the title is transferred. The bill of sale shows the seller no longer owned the vehicle at that time. Without it, the seller might be held responsible for something that happened after they sold the car.
Common mistakes to avoid
Do not leave the price blank or write "as is" without a number — always write the actual sale price, even if it was a gift (write "$0" or "gift"). Do not use nicknames or shortened names for either party — use the full legal name that appears on a driver's license or ID. Do not forget to include the VIN — this is the most important piece of information and makes the document legally solid.
Do not sign the bill of sale before both parties have reviewed it and agreed to all the information. Do not assume your state does not require a bill of sale — check your state's motor vehicle department to see if one is required or recommended. Do not throw away your copy after the sale — keep it for at least a few years in case questions come up later.
Frequently Asked Questions
Can I write a bill of sale by hand, or does it have to be typed?
A handwritten bill of sale is legal and just as valid as a typed one. Write clearly so both parties can read it, and make sure both of you sign and date it. Keep a copy for your records.
What if I sell a car for cash and the buyer does not want to sign anything?
Insist on a bill of sale even if the buyer is reluctant. It protects you both. If the buyer refuses to sign, that is a red flag — you may want to reconsider the sale. A signed bill of sale takes only a few minutes and is standard practice.
Do I need a notary to sign the bill of sale?
Most states do not require a notary signature on a bill of sale. A notary can add an extra layer of proof that both parties signed willingly, but it is not necessary. If you want one, contact your bank or a local notary public.
What if the car has a loan on it and the lender has not released the title yet?
Write on the bill of sale that the vehicle is subject to a lien held by the lender. The buyer should understand that they cannot get a clear title until the loan is paid off. The seller is responsible for paying off the loan and getting the lien released before the buyer can fully own the car.
Can I use the same bill of sale template for any state?
Most generic templates work in any state because the basic information is the same. However, some states have specific requirements or preferred wording. Check your state's motor vehicle department website first to see if they offer an official template — using it ensures you meet your state's standards.