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) both sign to show that a car has changed hands. It documents who owned the car, who owns it now, when the transfer happened, and how much money changed hands. The document protects both of you: it proves the seller received payment, and it proves the buyer now owns the vehicle.

You need a bill of sale whether you are buying or selling a car privately — meaning directly to another person, not through a dealership. When you buy from a dealer, they handle the paperwork. When you buy from someone's driveway, you handle it yourself. Many states require the bill of sale before you can register the car in your name at the DMV, and some states make it a legal requirement to have one even if you do not plan to register it right away.

A bill of sale is not the same as a title. The title is the official government document that says who owns the car. The bill of sale is the receipt and agreement that led to the title changing hands. You will file the title with your state's DMV after the sale; the bill of sale stays with your records.

Key Takeaways

  • A bill of sale must include the names and addresses of both buyer and seller, the vehicle identification number (VIN), the sale price, and the date of the sale, and both parties must sign it.
  • You can use a template from your state's DMV website, a generic template from a legal site, or write one yourself as long as it includes all required information.
  • The bill of sale should be signed in front of a witness or notary public in states that require it, though most states do not.
  • Keep one copy for your records and give one copy to the other party; if you are the buyer, bring a copy to the DMV when you register the car.
  • The bill of sale does not transfer the title — you must file the title with your state's DMV separately, usually within a set number of days after the sale.

Information that must go on the bill of sale

Every bill of sale needs the same core facts. Start with the names and addresses of both the seller and the buyer — use the full legal names as they appear on driver's licenses. Write out the complete address for each person, including street, city, state, and zip code.

Next, include the vehicle identification number (VIN), which is a 17-character code stamped on the car. You can find it on the dashboard on the driver's side, on the door jamb, or in the owner's manual. Write it exactly as it appears. Also write the year, make, model, and color of the car, and the odometer reading on the day of the sale.

Then write the sale price — the exact dollar amount that changed hands. If the buyer paid in cash, write "cash." If they paid by check, you can note that. Write the date of the sale in month-day-year format. Finally, add a line for both the seller and the buyer to sign and print their names, and include the date they signed.

Where to find a bill of sale template

Your state's DMV website usually has an official bill of sale form you can read and print for free. Search "[your state] DMV bill of sale" to find it. Using your state's official form is the safest choice because it includes everything your state requires and nothing extra that might cause confusion at the DMV.

If your state does not have an official form, you can use a generic template from a legal website like LegalZoom, Rocket Lawyer, or even a blank template from a general search. These templates are usually free to read. The form does not have to be fancy — it can be typed on a regular document or even handwritten, as long as it includes all the required information and both parties sign it.

Some people write a bill of sale from scratch without a template. This is legal as long as you include all the required information and both parties sign. However, using a template is faster and less likely to miss something important.

How to fill out and sign the bill of sale

Print out the form or template you chose. Fill in all the blanks with the information described above — seller name and address, buyer name and address, VIN, vehicle details, sale price, and date. Use blue or black ink if you are handwriting it. Type clearly or write legibly so there is no confusion later.

Both the seller and the buyer must sign the form. Some states require the signatures to be notarized, meaning a notary public watches you sign and stamps the document. Check your state's DMV website to see if notarization is required. If it is, you can get a document notarized at a bank, a UPS store, a library, or a notary's office — usually for a small fee of five to fifteen dollars.

If notarization is not required in your state, you can sign in front of a witness instead, though this is not mandatory. A witness is straightforward another person who watches you both sign and can confirm later that the signatures are real. The witness does not have to be anyone official — a friend or family member works.

What to do with the bill of sale after you sign it

Make at least two copies of the signed bill of sale — one for the seller and one for the buyer. If you had it notarized, make copies of the notarized version. Each party should keep their copy in a safe place with their other car documents.

If you are the buyer, bring your copy of the bill of sale to the DMV when you go to register the car in your name. The DMV will ask for it as proof that you own the vehicle. Some states require you to bring the original signed copy; others accept a photocopy. Call your local DMV or check their website to find out which they need.

If you are the seller, keep your copy as proof that you sold the car and received payment. This protects you if the buyer later has an accident or gets a ticket and someone tries to hold you responsible. Your copy of the bill of sale shows that you no longer owned the car on that date.

Transferring the title after the sale

The bill of sale is not the same as transferring the title. After you sign the bill of sale, the seller must sign the back of the title document itself and give it to the buyer. The title is the official government certificate that proves ownership. You cannot legally own the car until the title is in your name.

The buyer then takes the signed title and the bill of sale to the DMV to register the car. The DMV will issue a new title with the buyer's name on it. This process usually takes a few days to a few weeks, depending on how busy your local DMV is. Some states allow you to register online or by mail; others require you to go in person.

Most states require you to register the car within a certain number of days after the sale — often 10 to 30 days. Check your state's DMV website for the exact important date. If you miss the important date, you may face a fine or lose the right to register the car.

Common mistakes to avoid

The most common mistake is leaving out the VIN or writing it incorrectly. The VIN is how the DMV matches the bill of sale to the actual car, so it must be exact. Double-check it against the title, the dashboard, or the door jamb before you sign.

Another mistake is not signing in front of a witness or notary when your state requires it. If your state requires notarization and you sign without a notary, the DMV may reject the bill of sale and you will have to get it notarized later. Check your state's rules before you sign.

A third mistake is not keeping a copy for yourself. Both the buyer and the seller should have a signed copy. If you only have one copy and the other party loses theirs, you have no proof of the transaction if a problem comes up later.

Finally, do not assume the bill of sale transfers the title. It does not. The seller must also sign the back of the title document and give it to the buyer. The buyer must then take both documents to the DMV to complete the transfer. Many people think signing the bill of sale is enough and then are surprised when the DMV tells them the title is still in the seller's name.

Frequently Asked Questions

Can I write a bill of sale by hand, or does it have to be typed?

You can write it by hand. It does not have to be typed or printed. Just make sure your handwriting is clear and legible, use blue or black ink, and include all the required information. Both parties must sign it. A handwritten bill of sale is just as legal as a typed one.

What if the buyer and seller disagree on the sale price?

The bill of sale should show the actual amount of money that changed hands. If the buyer and seller agreed on a price, that is the price that goes on the bill of sale. If they disagree about what was agreed, they should settle that before signing. Once both parties sign, the bill of sale is a record of what they agreed to.

Do I need a bill of sale if I am selling a car to a family member?

Yes. Even if you are selling to a spouse, parent, or child, you should have a bill of sale. It protects both of you by documenting the sale and the price. It also makes the DMV registration process smoother because you have written proof of the transfer.

What happens if I lose my copy of the bill of sale after I sign it?

If you are the buyer, you will need the bill of sale to register the car at the DMV. If you lose it, contact the seller and ask for another copy. If you are the seller, losing your copy means you have no proof you sold the car. Ask the buyer for a copy, or contact them to sign another one if needed.

Can I use a bill of sale from another state?

You should use a bill of sale from your own state if one is available on your state's DMV website. Different states have different requirements, and using your state's official form ensures you include everything required. If your state does not have an official form, a generic template from another state will usually work, but check your state's DMV website first to be sure.