A bill of sale is a written record that you and the buyer (or seller) both sign to prove the car changed hands

A bill of sale is a document that shows who owned a car, who owns it now, and when the transfer happened. You sign it, the other person signs it, and you each keep a copy. It is not the same as the title — the title is the government document that proves ownership. The bill of sale is your proof that a transaction occurred on a specific date for a specific price, and it protects both of you if questions come up later.

You do not need a lawyer to write one. Most states do not require a specific form, which means you can write one yourself or use a template. Some states have an official bill of sale form you can read for free from the Department of Motor Vehicles website. Either way, the document needs the same basic information: the car's details, the price, the date, and both signatures.

Key Takeaways

  • A bill of sale records that a car was sold on a specific date for a specific price and protects both buyer and seller if a dispute arises later.
  • Most states do not require a specific form, but some offer an official template on the DMV website that you can print and fill out by hand.
  • The document must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the buyer and seller.
  • You should complete the bill of sale before you sign over the title or hand over the keys, and both parties should keep a signed copy.

What information to include on the bill of sale

Start with the car itself. Write down the year, make, model, and color. Then find the vehicle identification number (VIN) — it is on the dashboard on the driver's side, visible through the windshield, or on the title document. Write the full 17-character VIN. Also include the odometer reading on the day of sale, the license plate number, and any notes about the car's condition (for example, "minor dent on passenger door" or "new tires").

Next, write the sale price in both numbers and words — for example, "$5,000 (five thousand dollars)". This prevents confusion later. Include the date of the sale in month, day, and year format. Then add the names and addresses of both the seller and the buyer, exactly as they appear on their driver's licenses.

Some states require you to note whether the sale includes a warranty or is sold "as-is" with no warranty. Check your state's DMV website to see if this is required where you live. You can also add a line stating that the buyer has inspected the vehicle and accepts it in its current condition, which protects the seller from later claims about hidden problems.

Where to find your state's bill of sale form

Go to your state's Department of Motor Vehicles website and search for "bill of sale" or "vehicle bill of sale." Many states offer a free PDF you can read and print. Type or print the form, fill in the blanks by hand or on your computer, and print it again if you made changes. Some states like Florida, Texas, and Ohio have official forms; others leave it to you to create one.

If your state does not offer a form, you can write one yourself on plain paper or use a template from a legal document website. The format does not matter — what matters is that all the required information is there and both parties sign it. Write clearly so there is no confusion about what was agreed to.

Print at least two copies: one for the seller and one for the buyer. Some people print a third copy to keep with their records or to give to their insurance company.

How to fill out and sign the bill of sale

Fill in all the blanks completely. Do not leave fields empty or write "N/A" unless the form specifically says you can. If you are writing your own bill of sale, make sure every piece of information from the section above is included. Read through the entire document once before anyone signs it, so both parties know what they are agreeing to.

The seller signs first, then the buyer. Both should sign in front of each other if possible, so each person knows the other has agreed. Some states require the signatures to be notarized — check your state's DMV website to see if this applies to you. If notarization is required, you will need to take the signed bill of sale to a notary public (often available at banks, UPS stores, or your local courthouse) and pay a small fee, usually $5 to $15.

Write the date next to each signature. Do not sign a blank bill of sale or one with incomplete information. Once both people have signed, do not make changes to the document — if something is wrong, start over with a new copy.

When to complete the bill of sale in the sale process

Complete and sign the bill of sale before you hand over the keys or the title. This is the order: first, both parties sign the bill of sale; second, the seller signs over the title (or provides it to the buyer); third, the keys and car are transferred. This way, if something goes wrong before the title is transferred, you have a signed record of the agreement.

If you are the buyer, do not give the seller money until the bill of sale is signed. If you are the seller, do not sign over the title until the bill of sale is signed and you have received payment. The bill of sale is your proof that the transaction happened on that date at that price.

What happens after you sign the bill of sale

Each party keeps their signed copy. The buyer will need their copy when they register the car with the DMV and when they insure it. Some insurance companies ask to see the bill of sale before they will issue a policy. The seller should keep their copy for their records in case questions come up later — for example, if the car is involved in an accident or a crime before the title is officially transferred.

The bill of sale does not transfer the title. The buyer still needs to take the signed title and the bill of sale to the DMV to register the car in their name. The timeline for this varies by state — some require it within 10 days, others within 30 days. Check your state's DMV website for the important date and what documents you need to bring.

Common mistakes to avoid

Do not leave the price blank or write "cash" without a number. The IRS and your state tax authority may want to know the sale price, and the buyer needs it for their records. Do not sign a bill of sale that has blank spaces or information you have not verified — fill in everything or do not sign.

Do not assume the buyer will register the car right away. As the seller, your responsibility ends when you sign the bill of sale and hand over the title, but you may want to follow up with the buyer in a few weeks to confirm they have registered it. This protects you if the car is used illegally or in an accident before the registration is transferred.

Do not write in pen if you are filling out a form that will be photocopied — use black or blue ink that will show up clearly. Do not cross out mistakes and initial them; print a new copy and start over. A clean, legible document prevents disputes later.

Frequently Asked Questions

Do I need a notary to sign a bill of sale?

Most states do not require notarization for a bill of sale, but a few do. Check your state's DMV website to find out. If notarization is required, you will need to take the signed document to a notary public and pay a fee. If it is not required, both parties can sign in front of each other without a notary present.

What if the buyer and seller cannot meet in person?

You can mail the bill of sale to the other party to sign, or you can sign separate copies — one for each party. Both copies should be identical and signed by both people. Some states allow electronic signatures on bills of sale; check your state's DMV website to see if this is permitted where you live.

Can I use a bill of sale instead of transferring the title?

No. The bill of sale proves the sale happened, but the title is the legal proof of ownership. The buyer must take the signed title to the DMV to register the car in their name. The bill of sale supports that process but does not replace it.

What if I lost the bill of sale after I signed it?

If you are the seller, losing your copy does not affect the buyer's ability to register the car — they have their copy. If you are the buyer and you lose your copy, you can ask the seller for another signed copy or contact the DMV to see if they have a record of the sale. Keep your copy in a safe place with your other car documents.

Do I need to report the sale to the DMV?

The buyer needs to register the car with the DMV, which reports the sale. Some states also ask the seller to notify the DMV that they no longer own the vehicle, especially if the buyer does not register it quickly. Check your state's DMV website to see if you are required to file a notice of sale.