A bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a car from one owner to another
A bill of sale is a legal document that proves ownership has changed hands. It records who owned the car, who owns it now, when the transfer happened, and how much was paid. You do not need a lawyer to write one — the document can be as straightforward as a signed letter — but it must contain certain information to be useful if a dispute arises later or if either party needs proof of the transaction for insurance, registration, or tax purposes.
The bill of sale protects both the seller and the buyer. For the seller, it shows that they no longer own the vehicle and are not responsible for anything that happens to it after the sale. For the buyer, it proves they purchased the car and what they paid for it. Many states do not require a bill of sale by law, but having one is a practical safeguard that costs nothing to create.
Key Takeaways
- A bill of sale must include the names and addresses of both the seller and buyer, the vehicle identification number (VIN), the sale price, and the date of the transaction, all signed by both parties.
- You can write a bill of sale by hand on plain paper or use a template from your state's Department of Motor Vehicles website, which often provides free forms.
- Both the seller and buyer should keep a signed copy for their records, and the buyer will typically need the bill of sale when registering the vehicle in their name.
- Some states require the bill of sale to be notarized, so check your state's DMV website before finalizing the document.
- A bill of sale does not transfer the title itself — the buyer must still file paperwork with the DMV to become the legal owner.
What information must go in a bill of sale
The bill of sale should include the full legal names and addresses of both the seller and the buyer. Use the names exactly as they appear on identification documents. If there are multiple owners or buyers, list all of them.
Include the vehicle identification number (VIN), which is a 17-character code found on the driver's side dashboard, the door jamb, or the registration paperwork. Also record the year, make, model, and color of the car. Add the odometer reading at the time of sale, which protects the buyer by documenting the mileage and helps prevent odometer fraud.
Write the sale price in both numbers and words — for example, "$5,000 (five thousand dollars)" — to avoid confusion. If the car is being given as a gift, write "gift" or "$0" instead of a price. Include the date of the sale and a statement that the seller transfers ownership to the buyer. Both parties must sign and print their names. Some states also require the signatures to be notarized by a notary public, so verify your state's rules before signing.
Where to find a bill of sale template
Your state's Department of Motor Vehicles website usually offers a free bill of sale form. Search "[your state] DMV bill of sale" to find the official template. Using your state's form ensures you include everything the DMV will need if questions arise later.
If your state does not provide a template, you can write the bill of sale on plain paper or use a generic template from a legal document website. The document does not need to be fancy or printed on special paper. Handwritten bills of sale are legally valid in most states as long as they contain the required information and are signed by both parties.
Some states have specific language or formatting requirements, so checking your DMV website first is always the safer choice. If you cannot find a state-specific form, a straightforward handwritten document with all the key information will work in most cases.
How to complete and sign the bill of sale
Fill in all the blanks with accurate information. Take time to verify the VIN, spelling of names, and sale price before anyone signs. Errors can create problems later when the buyer tries to register the car or if there is a dispute.
Both the seller and buyer should read the entire document before signing. Sign in blue or black ink — not pencil — and print your full legal name next to your signature. If your state requires notarization, take the unsigned document to a notary public, who will witness both signatures and add their seal and signature. Notaries are available at banks, UPS stores, libraries, and law offices, usually for a small fee.
Make at least two copies: one for the seller and one for the buyer. If the document is notarized, the notary will provide certified copies. Keep your copy in a safe place, as you may need it for insurance, tax records, or to resolve disputes.
What happens after you sign the bill of sale
The bill of sale does not automatically transfer the title. The buyer must take the bill of sale, the original title (or process for title if the title is lost), and any other documents required by your state's DMV to register the vehicle in their name. The DMV will then issue a new title showing the buyer as the owner.
The seller should keep their copy of the signed bill of sale as proof that they no longer own the vehicle. This protects the seller if the car is later involved in an accident, receives a parking ticket, or is used in a crime — the bill of sale shows the seller transferred ownership on a specific date.
The buyer should also notify their insurance company of the purchase and provide a copy of the bill of sale if requested. Some insurance companies want proof of ownership before covering the vehicle.
State-specific rules and notarization requirements
Notarization requirements vary by state. Some states require the bill of sale to be notarized; others do not. A few states do not require a bill of sale at all, though having one is still recommended. Check your state's DMV website to learn the specific rules where you live.
A handful of states have additional requirements, such as listing the odometer reading or including a statement about the vehicle's condition. Some states want the bill of sale filed with the DMV along with the title process. Your state's DMV website will specify what is needed.
If you are buying or selling a car across state lines, follow the rules of the state where the title will be registered, not where the sale takes place. The buyer's state determines what documents are needed.
Common mistakes to avoid when writing a bill of sale
Do not leave blanks or write "to be determined" for any field. Incomplete information creates doubt about whether the sale was legitimate and can delay registration. If information changes after you sign, do not cross it out and initial it — start over with a new document.
Do not use nicknames or shortened versions of names. The names on the bill of sale must match the names on the seller's title and the buyer's identification. Mismatched names can cause the DMV to reject the registration.
Do not forget to have both parties sign. A bill of sale signed by only one person is not valid proof of transfer. If one party is unavailable, do not proceed — both signatures are essential.
Do not assume the bill of sale transfers the title. It documents the sale, but the buyer must still file paperwork with the DMV to become the legal owner. Until that happens, the seller remains the registered owner in the state's records.
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 legally valid in all states as long as it contains all required information and is signed by both parties. Typing it is not necessary, though some people prefer typed documents for clarity. Either way works.
What if the seller does not have the original title?
The buyer will need to file an process for a duplicate title with the DMV, usually along with the bill of sale. The DMV can issue a new title to the buyer even if the original is lost, though the process may take longer. Check your state's DMV website for the specific form and fee.
Do I need a bill of sale if I am giving the car as a gift?
Yes. Write the bill of sale the same way, but enter "gift" or "$0" as the sale price. The buyer still needs to register the vehicle with the DMV, and the bill of sale proves the transfer of ownership. Some states treat gifts differently for tax purposes, so the DMV may ask for the bill of sale to confirm no money changed hands.
What if I sell the car but the buyer does not register it right away?
The seller remains the registered owner until the buyer files the title transfer with the DMV. Keep your copy of the signed bill of sale to prove you sold the car on a specific date. If the car is involved in an accident or receives a ticket before the buyer registers it, the bill of sale protects you by showing you are no longer the owner.
Can I use a bill of sale from another state?
You can, but it is safer to use your state's form or template. Different states have different requirements, and using your state's official form ensures you include everything the DMV expects. If you use a form from another state, check your DMV website to confirm it includes all required information.