What a California bill of sale is and why you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold it to you. In California, it is not required by law to transfer a title, but the DMV strongly recommends you use one because it protects both the buyer and the seller. The bill of sale documents the sale price, the vehicle details, the date of sale, and the signatures of both parties. If a dispute arises later — about who owned the car on a certain date, what was promised at sale, or what price was agreed — the bill of sale is your proof.
The California DMV does not provide an official bill of sale form, but you can use any bill of sale document as long as it contains the required information. Many people read a template online, write one by hand, or use a form from a car buying service. What matters is that both the buyer and seller sign it, and that it includes specific details about the vehicle and the transaction.
Key Takeaways
- California does not legally require a bill of sale, but using one protects you if questions arise about who owned the vehicle or what was agreed at the time of sale.
- The bill of sale must include the vehicle identification number (VIN), make, model, year, sale price, buyer and seller names and addresses, and the date of sale, signed by both parties.
- You can use any written bill of sale form — the DMV does not provide an official one, but templates are widely available online and from car buying services.
- The buyer should keep the bill of sale when registering the vehicle with the DMV, and the seller should keep a copy for their records.
What information must be on a California bill of sale
Whether you write the bill of sale by hand or use a template, it must include the vehicle identification number (VIN), the make, model, and year of the vehicle, and the odometer reading at the time of sale. Both the buyer and the seller must print their full names and addresses. The sale price must be stated, even if the vehicle was a gift — in that case, write "gift" or "$0" but do not leave the price blank.
The bill of sale must be dated and signed by both the buyer and the seller. Some people have the signatures notarized, which means a notary public witnesses the signatures and stamps the document. Notarization is not required in California, but it adds a layer of proof that both parties actually signed the document and were present when they did.
If the vehicle has a lien on it — meaning a bank or lender owns part of it until a loan is paid off — that should be noted on the bill of sale. The seller should disclose whether the vehicle is still owed to a lender, and the buyer should understand that the title will not be clear until the lien is paid.
Where to find a bill of sale form
The California DMV website does not offer an official bill of sale form, but you have several options. Many online legal document services provide free or low-cost California bill of sale templates that you can read and print. The California Secretary of State's office also provides guidance on what should be included, though not a specific form.
Some car buying websites and used car marketplaces include bill of sale templates as part of their resources. You can also ask your bank or credit union — many offer bill of sale forms to their customers. If you are buying or selling through a dealership, the dealership will usually provide the bill of sale as part of the paperwork.
You can also write a bill of sale by hand on plain paper. It does not need to be typed or printed. As long as it includes all the required information and is signed by both parties, a handwritten bill of sale is valid in California.
How the bill of sale connects to DMV title transfer
When you buy a vehicle in California, you will need to transfer the title to your name at the DMV. The bill of sale is not the same as the title — the title is the legal document that proves ownership, issued by the DMV. The bill of sale is the record of the transaction that led to the title transfer.
The buyer should bring the bill of sale to the DMV when registering the vehicle and transferring the title. The DMV does not require you to submit the bill of sale, but having it on hand helps if questions come up about the sale. The seller should keep a copy of the bill of sale for their records, especially if the vehicle later appears in an accident or is used in a crime — the bill of sale proves you no longer owned it.
Scams and safety concerns with bills of sale
Be cautious of sellers who refuse to provide a bill of sale or who want you to sign one that lists a lower price than what you actually paid. Some sellers do this to help buyers avoid taxes or registration fees, but it is fraud and can create legal problems for you later. If you are audited or if there is a dispute, you will have no proof of what you actually paid.
Do not sign a bill of sale that has blank spaces or that you have not read completely. Make sure the VIN, price, and both signatures are filled in before you sign. If you are buying from a private seller, meet in a public place, bring someone with you, and verify the VIN on the vehicle matches the VIN on the bill of sale and on the title.
Watch for sellers who claim they cannot find the title or who say the title is "in the mail." In California, you can transfer a title even if the seller has lost it, but the process is more complicated and takes longer. If a seller is evasive about the title or the bill of sale, that is a warning sign.
What happens if you lose the bill of sale
If you have already transferred the title and registered the vehicle in your name, losing the bill of sale is not a legal problem — the DMV records show that you own the vehicle. However, if a dispute arises about the sale or the condition of the vehicle, you will have no written proof of what was agreed.
If you are still in the process of transferring the title and you lose the bill of sale, you can ask the seller for another copy. If the seller will not provide one, you can write a new bill of sale together and both sign it, as long as you both agree on the details. If you cannot reach the seller or you disagree about the terms, you may need to consult a lawyer.
Frequently Asked Questions
Do I have to notarize a bill of sale in California?
No, notarization is not required. A bill of sale is valid as long as both the buyer and seller sign it. However, notarization adds proof that both parties actually signed the document, which can be helpful if a dispute arises later.
Can I use a bill of sale from another state?
Yes, you can use a bill of sale from another state as long as it includes all the information California requires: VIN, make, model, year, sale price, buyer and seller names and addresses, date, and both signatures. The DMV will accept it when you transfer the title.
What if the seller will not give me a bill of sale?
You can still transfer the title at the DMV without a bill of sale, but it is risky. Without a bill of sale, you have no written proof of the sale price, the date, or what condition the vehicle was in. If problems arise later, you will have no documentation to protect yourself.
Should I list the sale price as the actual amount I paid, or can I write a lower amount?
You should list the actual amount you paid. Writing a lower price to reduce registration fees or taxes is fraud. If you are audited or if there is a legal dispute, you could face penalties or lose the protection the bill of sale is meant to provide.
Can I use a bill of sale if the vehicle has a loan on it?
Yes, but the bill of sale should note that there is a lien on the vehicle. The buyer should understand that the seller's lender must be paid off before the title can be transferred to the buyer's name. The seller is responsible for paying off the loan, not the buyer.