What an Arkansas bill of sale does and when you need one
An Arkansas vehicle bill of sale is a document that records the transfer of ownership when you buy or sell a car, truck, motorcycle, or other motor vehicle. It serves as proof that money (or other value) changed hands and that the seller no longer owns the vehicle. Arkansas law does not require a bill of sale to register a vehicle, but the Arkansas Department of Finance and Administration recommends having one, and many lenders and insurance companies will ask for it.
You need a bill of sale whenever you sell a vehicle privately — that is, directly to another person rather than to a dealer. If you are buying from a dealer, the dealer typically provides their own sales documents. If you are selling to a dealer, they will provide theirs. The bill of sale protects both the buyer and seller by creating a written record of the sale date, the vehicle details, the price, and the condition of the vehicle at the time of transfer.
Key Takeaways
- Arkansas does not require a bill of sale by law, but the state recommends one and lenders often require it before they will finance a vehicle purchase.
- You can use a straightforward bill of sale form or create your own document as long as it includes the vehicle identification number, sale price, date, and signatures of both buyer and seller.
- The bill of sale should be signed in front of a notary public in Arkansas, though notarization is not legally required — it straightforward adds legal weight if a dispute arises later.
- Make three copies: one for the buyer, one for the seller, and one to keep with your vehicle records or provide to your lender.
What information must go on an Arkansas bill of sale
The bill of sale must include the vehicle identification number (VIN), which appears on the vehicle's title and on the dashboard near the windshield. It must also show the year, make, model, and color of the vehicle. Include the odometer reading on the date of sale — this is important for the buyer's records and for insurance purposes.
Write the full name and address of the seller and the full name and address of the buyer. Include the sale price in dollars. If the vehicle is being transferred for no money (as a gift, for example), write "no consideration" or "$0" and make clear this is a gift. Add the date the sale took place. Both the seller and buyer must sign and print their names on the document.
You may also include the vehicle's condition at the time of sale — for example, "sold as-is" or a note about any known mechanical issues. This protects the seller from later claims that the vehicle was defective. Some sellers note whether the title is clear (no liens) or whether a lien exists (a bank or lender still has a claim on the vehicle).
Where to get an Arkansas bill of sale form
The Arkansas Department of Finance and Administration does not provide an official bill of sale form, but you can find templates online through the state's website or through legal document services. Many people use a straightforward one-page form that lists the required information above.
You can also write your own bill of sale on plain paper as long as it includes all the required details. There is no specific format required by Arkansas law. Some sellers and buyers prefer to use a form because it ensures nothing is forgotten and looks more official, especially if the vehicle is expensive or if a lender is involved.
If you are unsure whether your form is complete, you can take it to a notary public or an attorney to review before signing. This costs a small fee but can prevent problems later.
How to sign and notarize the bill of sale
Both the seller and buyer should sign the bill of sale in front of each other. Print your full legal name next to your signature. The document does not have to be notarized under Arkansas law, but notarization adds legal weight if there is ever a dispute about the sale.
To have the bill of sale notarized, take it to a notary public along with a government-issued photo ID. Notaries are available at most banks, credit unions, law offices, and UPS stores. The notary will watch you sign, verify your identity, and then sign and stamp the document. This typically costs between $5 and $15 per signature. In Arkansas, both the seller and buyer can be notarized on the same document.
After notarization, make three copies: one for the buyer, one for the seller, and one to keep with your vehicle records. If you are financing the purchase through a bank or credit union, provide a copy to your lender as well.
What happens after you sign the bill of sale
The bill of sale does not transfer the title to the vehicle — only the title document itself does that. The buyer will need to take the bill of sale, the title, and proof of insurance to the Arkansas Department of Finance and Administration to register the vehicle in their name and receive a new title.
The seller should keep a copy of the signed bill of sale for their records. This proves they no longer own the vehicle and protects them if the buyer gets into an accident or receives a traffic ticket after the sale. Some sellers also notify their insurance company that they have sold the vehicle so their policy can be cancelled.
If the vehicle has a lien (the seller still owes money to a bank), the lender must sign off on the title before the buyer can register it. The bill of sale alone does not clear a lien. The seller must pay off the loan or arrange for the lender to release the lien once the sale is complete.
Common mistakes to avoid when writing a bill of sale
Do not leave the VIN blank or write it incorrectly — this is the most important piece of information and must match the title exactly. Double-check it against the title document and the vehicle itself before signing.
Do not forget to include the sale price, even if it seems obvious. If the price is missing, the document may not be accepted by a lender or the state. Write out the amount in both numbers and words if possible — for example, "Five Thousand Dollars ($5,000)" — to prevent disputes.
Do not sign the bill of sale unless both parties agree on all the details. Once signed, it is a legal record of the sale. If you need to make changes, cross out the error, write the correction above it, and have both parties initial the change. Do not use white-out or erasers, as this can raise questions about the document's authenticity.
Do not assume the bill of sale transfers the title. The title document is separate and must be signed by the seller and submitted to the state. The bill of sale is proof that the sale happened; the title is proof of ownership.
Frequently Asked Questions
Does Arkansas require a notary to sign a bill of sale?
No, Arkansas does not require notarization. However, having a notary witness and stamp the document makes it stronger evidence if a dispute arises later. Many lenders request or prefer a notarized bill of sale, so it is worth doing if you are financing the purchase.
What if I sell a vehicle with a loan still owed on it?
You must disclose the lien on the bill of sale. The lender must release the lien before the buyer can register the vehicle. Usually, the sale proceeds go to the lender to pay off the loan, and any remaining money goes to you. Work with your lender to coordinate the timing of the payoff and the title release.
Can I use a bill of sale if I am selling a vehicle as a gift?
Yes. Write "no consideration" or "$0" on the bill of sale to show it is a gift, not a sale. The recipient will still need to register the vehicle with the state and will need the bill of sale and title to do so. Some insurance companies may ask about the gift status when you insure the vehicle.
What if the buyer does not show up to sign the bill of sale?
You cannot complete the sale without the buyer's signature. If the buyer backs out, keep a copy of any unsigned bill of sale you prepared. If you have already handed over the keys or money, contact an attorney about your options. A bill of sale signed by only one party is not a complete record of the transaction.
How long should I keep a copy of the bill of sale?
Keep your copy for at least three to five years. This protects you if questions arise about the sale, such as unpaid traffic tickets or accident liability. Some people keep it for the life of the vehicle or longer, especially if it was a high-value sale.