What a bill of sale is and why you need one
A bill of sale is a written record that you and the buyer (or seller) sign to prove that a car has changed hands. It documents who owned the car, who owns it now, the vehicle identification number (VIN), the sale price, and the date of the transaction. Both the buyer and seller keep a copy.
A bill of sale protects you in two ways. If you are selling, it proves you no longer own the car — so you are not responsible if the buyer gets a parking ticket or is in an accident after you sign. If you are buying, it proves you paid for the car and what you paid, which matters if there is a dispute with the seller later or if the title paperwork gets lost.
Many states do not require a bill of sale by law, but your state's Department of Motor Vehicles (DMV) or equivalent agency may ask for one when you register the car in your name. Even if your state does not require it, creating one costs nothing and takes 10 minutes — it is worth doing.
Key Takeaways
- A bill of sale is a signed document that records who sold the car, who bought it, the VIN, the sale price, and the date — and protects both parties.
- You can write one by hand on plain paper or use a free template from your state's DMV website or a general template site.
- Both the buyer and seller must sign and date the bill of sale, and each should keep a copy for their records.
- Some states require the bill of sale to be notarized (signed in front of a notary public), so check your state's DMV website first.
- A bill of sale is separate from the title document and does not transfer ownership by itself — the title must also be signed over.
Where to find a free bill of sale template
Your state's DMV website often has an official bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not offer one, general template sites like Rocket Lawyer, LawDepot, and Nolo have free car bill of sale templates that work in most states.
These templates ask for the same core information: the seller's name and address, the buyer's name and address, the car's VIN (found on the dashboard or title), the year, make, and model, the sale price, the date, and signature lines for both parties. Some templates also ask whether the car is being sold "as-is" (meaning the buyer accepts it in its current condition) and whether there are any outstanding loans on the car.
If you cannot find a template or prefer to write one yourself, you can use plain paper and a pen. Write the date at the top, list the seller and buyer information, describe the car by VIN and year/make/model, state the sale price, and add lines for both signatures. The form does not have to be fancy — it just has to be clear and signed by both parties.
What information to include on the bill of sale
Start with the date the sale takes place. Then list the seller's full name, address, and phone number, followed by the buyer's full name, address, and phone number. Use the legal names that appear on driver's licenses, not nicknames.
Next, describe the vehicle. Include the VIN (a 17-character code), the year, the make (manufacturer), the model, the color, and the mileage at the time of sale. The VIN is the most important detail because it uniquely identifies the car and prevents confusion if the buyer or seller has owned multiple vehicles of the same type.
Write the sale price in both numbers and words — for example, "$5,000 (five thousand dollars)" — to avoid disputes over what was agreed. If the car is being sold "as-is," write that clearly. If there is an outstanding loan on the car, note the lender's name and the loan amount so the buyer knows the title may be held by the bank until the loan is paid off.
End with signature lines and dates for both the seller and buyer. Some states require the signatures to be notarized, meaning a notary public must watch you sign and verify your identity. Check your state's DMV website to see whether notarization is required where you live.
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 — do not guess at the VIN or mileage. If you are unsure of any detail, look it up or ask the other party before signing.
Both the buyer and the seller should read the entire document before signing. Make sure the price, vehicle description, and names are correct. If something is wrong, cross it out, write the correction above it, and have both parties initial the change. Do not use white-out or make the document hard to read.
Sign and date the bill of sale in front of the other person. If your state requires notarization, both of you will need to sign in front of a notary public at a bank, library, or notary office. The notary will watch you sign, check your ID, and add their seal and signature to the document.
Make at least two copies — one for the seller and one for the buyer. If the bill of sale was notarized, the notary may keep a copy as well. Each party should store their copy in a safe place, such as a file folder or safe deposit box, in case questions come up later.
The difference between a bill of sale and a title
A bill of sale and a title are two different documents that serve different purposes. The title is the official government document that proves who owns the car. It is issued by your state's DMV and has a registration number and security features to prevent fraud.
A bill of sale is a private record between the buyer and seller. It proves the transaction happened and what was agreed, but it does not transfer ownership by itself. To transfer ownership, the seller must also sign the back of the title (or fill out a separate title transfer form) and give it to the buyer. The buyer then takes the signed title to the DMV to register the car in their name.
In short: the bill of sale records the sale, and the title transfer records the change of ownership. You need both to complete a car purchase.
What to do after both parties sign
Once the bill of sale is signed by both parties, each person should keep a copy. The seller should keep their copy as proof that they sold the car and are no longer responsible for it. The buyer should keep their copy along with the signed title and any other paperwork related to the purchase.
The buyer will need to take the signed title and bill of sale to the DMV within a certain time frame — usually 10 to 30 days, depending on the state — to register the car in their name. The DMV will use the bill of sale and title to update their records and issue new registration documents.
If the car has an outstanding loan, the title may be held by the lender until the loan is paid off. In that case, the buyer should contact the lender to find out how to transfer the title once the loan is settled. The bill of sale still serves as proof of the sale during this process.
Common mistakes to avoid when writing a bill of sale
Do not leave blanks or write "TBD" (to be determined) for any field. Every detail — the VIN, the price, the names, the date — must be filled in before signing. If you are not sure of something, find out the correct information rather than guessing.
Do not sign the bill of sale unless both parties agree on all the terms. If the buyer wants to negotiate the price or the seller wants to note a mechanical issue, make those changes in writing and have both parties initial them. A bill of sale signed under pressure or with unresolved disagreements can lead to disputes later.
Do not assume that signing a bill of sale is enough to complete the sale. You must also transfer the title at the DMV. If you are the seller and you do not transfer the title, you may still be listed as the owner in government records, which could cause problems if the car is involved in an accident or crime.
Do not lose your copy. Store it in a safe place where you can find it if you need to prove the sale happened or what the terms were. If you are the buyer, you will need it when you go to the DMV to register the car.
Frequently Asked Questions
Do I have to use an official template, or can I write my own bill of sale?
You can write your own as long as it includes the seller's name and address, the buyer's name and address, the VIN, the year/make/model, the sale price, the date, and signatures from both parties. An official template is safer because it includes everything your state's DMV expects, but a handwritten version works if it has all the required information.
What if I lose my copy of the bill of sale after I sign it?
Ask the other party for another copy, or contact a notary if the document was notarized — they may have a copy on file. If neither is possible, you can write a new bill of sale with the same information and have both parties sign it again. Keep the new copy in a safe place.
Does the bill of sale have to be notarized?
It depends on your state. Some states require notarization for a bill of sale to be valid; others do not. Check your state's DMV website to find out. If notarization is required and you do not get it, the DMV may reject the document when you try to register the car.
Can I sell a car without a bill of sale?
Technically, yes — the title transfer is what matters legally. However, a bill of sale protects both you and the buyer by creating a written record of the sale. Without one, it is harder to prove the transaction happened or what the terms were if a dispute comes up later.
What if the buyer does not show up to sign the bill of sale?
Do not sign it alone. A bill of sale must be signed by both the seller and the buyer to be valid. If the buyer does not show up, reschedule for a time when both of you can be present, or reconsider whether you want to go through with the sale.