A bill of sale is a written record that proves who owned a car and who owns it now
A bill of sale is a document that shows a car has changed hands from one owner to another. It records the seller's name and the buyer's name, describes the vehicle (make, model, year, and vehicle identification number), and states the price paid. When you sign a bill of sale, you are creating a paper trail that protects both of you — it proves the sale happened, on what date, and for how much money.
You need a bill of sale because your state's Department of Motor Vehicles uses it to update the vehicle title. The title is the legal document that says who owns the car. Without a bill of sale, the DMV has no record that ownership changed, and the new owner cannot legally register the vehicle in their name. The seller also needs it to prove they no longer own the car, which protects them if the car is later involved in an accident or crime.
A bill of sale is not the same as a title. The title is issued by your state and proves ownership. A bill of sale is a private agreement between buyer and seller that documents the transaction. You typically need both — the bill of sale to show the sale happened, and the title to show who currently owns it.
Key Takeaways
- A bill of sale records the seller's name, buyer's name, vehicle details, sale price, and date — creating proof that ownership changed hands.
- Your state's DMV requires a bill of sale before it will transfer the title into the new owner's name.
- Both buyer and seller should keep a signed copy, because the bill of sale protects each of you if problems arise later.
- Most states provide a standard bill of sale form, though you can also use a template from a reputable source or write one yourself if it includes all required information.
- A bill of sale is not a substitute for a title — you need both documents to complete a legal car sale.
What information goes on a bill of sale
A bill of sale must include the seller's full name and address, the buyer's full name and address, and the date of the sale. It should describe the vehicle by its make, model, year, color, and most importantly, its Vehicle Identification Number (VIN) — a 17-character code stamped on the car that uniquely identifies it. The VIN appears on the title, on the driver's side dashboard, and on the door jamb.
The document must also state the sale price. Write the amount in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to prevent disputes. If the car is being given as a gift, you can write "gift" or "$0" depending on what your state requires — some states tax gifts differently than sales, so check your DMV's rules.
Both the seller and buyer must sign and date the bill of sale. Some states require the signatures to be notarized, meaning a notary public witnesses the signing and stamps the document. Check your state DMV website to see whether notarization is required where you live. Even if it is not required, notarizing the document adds an extra layer of proof that both parties signed it willingly.
Where to get a bill of sale form
Most states provide an official bill of sale form on their DMV website. Search "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sales Agreement" instead. Using your state's official form is the safest choice because it includes everything your DMV expects to see.
If your state does not provide a form, you can read a template from a reputable source like your state's Secretary of State office or a legal document website. You can also write your own bill of sale as long as it includes all the information listed above — the seller's and buyer's names and addresses, the vehicle description with VIN, the sale price, the date, and both signatures.
Do not use a form from another state, because states have different requirements and your DMV may reject it. A form that works in California might not work in Texas.
When and how to use a bill of sale
Fill out the bill of sale before the money changes hands. Both the seller and buyer should read it carefully to make sure all the information is correct — especially the VIN, which is straightforward to misread. If either of you notices an error, cross it out, write the correct information above it, and both of you initial the change. Do not use white-out or tape, because it can make the document look altered.
Once both parties have signed, make at least two copies — one for the seller and one for the buyer. If the document is notarized, the notary will provide you with a certified copy. Keep your copy in a safe place. The buyer will need to bring their copy to the DMV when they register the car in their name. The seller should keep their copy as proof that they sold the car and no longer own it.
The bill of sale does not transfer the title by itself. After both parties sign, the buyer must take the bill of sale and the current title to the DMV to request a title transfer. The DMV will issue a new title in the buyer's name. This process usually takes a few weeks, depending on how busy your local DMV is.
Why both buyer and seller need to keep a copy
The seller needs a copy to prove they no longer own the vehicle. If the car is later involved in an accident, parking ticket, or crime, the seller can show the bill of sale to prove they sold it before the incident happened. Without this proof, the seller could be held responsible for something the new owner did.
The buyer needs a copy to show the DMV when registering the car. The buyer also needs it as proof of purchase in case there is a dispute with the seller later — for example, if the seller claims the buyer owes more money, or if the car has hidden damage that the seller did not disclose. The bill of sale documents the price you agreed on and the condition you understood the car to be in at the time of sale.
Common mistakes to avoid
Do not leave any fields blank. If a field does not explore to your sale (for example, if the car has no lien on it), write "N/A" or "none" so it is clear you did not just forget to fill it in. Blank spaces can make the document look incomplete or raise questions at the DMV.
Do not sign the bill of sale before filling in all the details. Once you sign, you are confirming that the information is accurate. If you sign a blank form or a form with missing information, you are taking a legal risk.
Do not assume the seller's signature is enough. Both the buyer and seller must sign for the document to be valid. If only one person signs, the DMV will reject it.
Do not throw away your copy after the title transfer is complete. Keep it with your car's records for as long as you own the vehicle. If you ever sell the car, you may need to refer back to it.
What happens if you sell a car without a bill of sale
If you sell a car without a bill of sale, the DMV has no record that the sale happened. The title may still be in the seller's name, which means the seller is still legally responsible for the vehicle. If the new owner gets into an accident or racks up parking tickets, those bills can come to the original owner.
Without a bill of sale, the buyer also has no proof of purchase. If the car breaks down or has serious problems, the buyer has no documentation of what they paid or what condition the car was in when they bought it. This makes it much harder to pursue a claim against the seller if something goes wrong.
Some states allow the buyer to register a car without a bill of sale if they have the title signed by the seller, but this varies by state. Even if your state allows it, having a bill of sale is still the safer choice for both parties.
Frequently Asked Questions
Do I need a bill of sale if I'm trading in my car at a dealership?
No. Dealerships handle their own paperwork and do not use a standard bill of sale. The dealership will provide you with documents that serve the same purpose — they record the trade-in value and transfer of ownership. You will sign these documents as part of the purchase agreement for your new car.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the car, or they are trying to hide something. Walk away from the deal. A legitimate sale always includes a bill of sale signed by both parties.
Can I use a bill of sale from a private party website or app?
You can, as long as the form includes all the required information for your state. However, your state's official DMV form is always the safest choice because it is designed specifically for your state's requirements. If you use a third-party form, double-check it against your state DMV website to make sure nothing is missing.
Does the bill of sale have to be notarized?
It depends on your state. Some states require notarization, while others do not. Check your state DMV website to find out. Even if notarization is not required, having it done adds extra proof that both parties signed willingly and that the signatures are genuine.
What if I lost my copy of the bill of sale?
Contact the other party and ask for another copy. If you cannot reach them, you can request a copy of the title transfer record from your state DMV — this document shows that the title was transferred and may serve as backup proof. However, it is better to keep your original copy in a safe place from the start.