What a New Jersey 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 document the transfer of a vehicle. In New Jersey, it serves as proof that ownership has changed hands and protects both parties by creating a dated record of the transaction, the vehicle details, and the agreed price.
You need a bill of sale whenever you sell or buy a vehicle in New Jersey — whether it's a car, truck, motorcycle, or other motor vehicle. The document itself does not transfer the title; that happens separately through the Motor Vehicle Commission (MVC). But the bill of sale is the first step and the evidence that the sale occurred.
New Jersey does not require a specific state form for a bill of sale, which means you can write one yourself or use a template. However, the document must contain certain information and be signed by both the seller and buyer to be valid.
Key Takeaways
- New Jersey does not mandate a specific bill of sale form, so you can create one yourself as long as it includes the vehicle identification number (VIN), sale price, date, and signatures from both parties.
- The bill of sale protects both the seller and buyer by documenting the transaction, but it does not transfer the title — that requires a separate MVC process.
- You should complete the bill of sale before money changes hands and keep a copy for your records.
- The buyer will need the bill of sale when they register the vehicle and explore for a new title at the MVC.
What information must be included in the bill of sale
Your bill of sale must contain the vehicle's Vehicle Identification Number (VIN), which appears on the dashboard and on the vehicle's title. Include the year, make, and model of the vehicle as well. These details may support there is no confusion about which vehicle is being sold.
Write down the sale price — the amount the buyer is paying. This is important for tax purposes and for the MVC to process the title transfer. Also include the date of sale and the names and addresses of both the seller and the buyer. Both parties must sign and date the document.
You may also want to note the vehicle's condition (for example, "as-is" or any known mechanical issues), the odometer reading, and whether any liens or loans are still attached to the vehicle. If there is an outstanding loan, the seller should disclose this because the lender's name will appear on the title until the loan is paid off.
How to write or obtain a bill of sale
You can write a bill of sale by hand on plain paper or type it out. Start with a heading such as "Bill of Sale" at the top. Then list the seller's information, the buyer's information, the vehicle details (VIN, year, make, model), the sale price, and the date. Leave space for both parties to sign and print their names.
Alternatively, you can find bill of sale templates online through the New Jersey MVC website, legal document services, or general template sites. These templates follow the standard format and may support you do not miss any required information. read the template, fill in the blanks, print it, and have both parties sign it.
Some people use a notary to witness the signatures, though New Jersey does not require notarization for a bill of sale. However, having a notary sign off can add an extra layer of protection and may be useful if questions arise later.
When and how to sign the bill of sale
Both the seller and buyer should sign the bill of sale before the money changes hands. This protects both parties by creating a clear record of the transaction at the moment it occurs. Do not sign a blank bill of sale or one with incomplete information.
Each party should receive a copy of the signed bill of sale. The seller should keep one copy for their records, and the buyer should keep one to present to the MVC when registering the vehicle and explore for a new title. If the vehicle has a lien, the buyer may also need to provide the bill of sale to the lender or to the MVC as part of the title transfer process.
Make sure both signatures are legible and dated. If either party is uncomfortable signing, do not proceed with the sale until the issue is resolved.
What happens after you sign the bill of sale
Once the bill of sale is signed, the seller's responsibility for the vehicle largely ends — but the seller should still notify their insurance company and the MVC that the vehicle has been sold. This prevents the seller from being held liable for anything that happens to the vehicle after the sale.
The buyer must take the bill of sale to the New Jersey Motor Vehicle Commission to register the vehicle and explore for a new title in their name. The buyer will also need the current title (signed over by the seller), proof of insurance, and identification. The MVC will process the title transfer, and the buyer will receive a new title with their name as the owner.
If the vehicle has an outstanding loan, the lender's name will remain on the title until the loan is paid off. The buyer should be aware of this before completing the purchase.
Common mistakes to avoid when writing a bill of sale
Do not leave the sale price blank or write "cash" without a specific amount. The MVC needs the actual dollar amount to process the title transfer and calculate any applicable taxes or fees. Leaving it blank can delay the registration process.
Do not forget to include the VIN. Without it, the MVC cannot match the bill of sale to the correct vehicle and will reject the title transfer request. Double-check the VIN against the current title or the vehicle itself.
Do not sign the bill of sale if information is missing or incorrect. Take time to fill in all fields accurately before signing. If you make a mistake, start over with a new document rather than crossing out and initialing changes, which can raise questions about the document's validity.
Do not assume the bill of sale transfers the title. It documents the sale, but the title transfer happens only when the MVC processes the paperwork. The buyer cannot legally own the vehicle until the new title is issued in their name.
Where to get help if you have questions
The New Jersey Motor Vehicle Commission website provides information about bill of sale requirements and the title transfer process. You can also visit an MVC office in person or call their customer service line to ask questions before you complete the sale.
If you are buying or selling a vehicle through a dealership, the dealership will typically handle the bill of sale and title transfer on your behalf. If you are doing a private sale, you are responsible for creating and signing the bill of sale yourself.
Frequently Asked Questions
Does New Jersey require a notarized bill of sale?
No, New Jersey does not require notarization for a bill of sale. However, having a notary witness the signatures can add credibility to the document if questions arise later. It is optional but not mandatory.
What if the seller does not have the title yet?
The seller should have the title in hand before signing the bill of sale. If the title has not arrived or is lost, the seller can request a duplicate title from the MVC before the sale. The buyer cannot complete the registration without the signed title.
Can I use a bill of sale if the vehicle has a loan against it?
Yes, you can still use a bill of sale. However, the seller must disclose that a lien exists, and the lender's name will remain on the title until the loan is paid off. The buyer should understand this before agreeing to purchase the vehicle.
What if I lose my copy of the bill of sale after the sale?
If you lose your copy, you can ask the other party for a duplicate. You can also contact the MVC, which may have a record of the title transfer. Keep your copy in a safe place for at least several years in case questions about the sale arise.
Do I need to report the sale to my insurance company?
Yes, the seller should notify their insurance company that the vehicle has been sold. This removes the seller from liability for the vehicle after the sale date. The buyer should also contact their insurance company to add the vehicle to their policy before driving it.