A bill of sale is a written record that you sold a vehicle to someone else
A bill of sale is a document that proves ownership changed hands. It shows who owned the car, who owns it now, what they paid for it, and when the sale happened. The DMV uses it to confirm that the person explore for a new title actually bought the vehicle from someone with the legal right to sell it.
You need a bill of sale because the DMV will not transfer a title without proof of the sale. It protects both you and the buyer — it shows the buyer paid for the car and the seller no longer owns it. Without one, the DMV cannot process a title transfer, and the buyer cannot legally register the vehicle.
The bill of sale is separate from the title itself. The title is the government document that says who owns the car. The bill of sale is the proof that ownership changed. You create the bill of sale when you sell; the DMV creates or transfers the title after you show them the bill of sale.
Key Takeaways
- A bill of sale is a written agreement between seller and buyer that documents the vehicle sale, including the price, date, and both parties' names and addresses.
- The DMV requires a bill of sale before it will issue a new title in the buyer's name, even if you have the original title in hand.
- Most states provide a bill of sale form on the DMV website, though you can also write one yourself or use a template as long as it includes all required information.
- Both the seller and buyer must sign the bill of sale, and some states require it to be notarized or witnessed before the DMV will accept it.
- A bill of sale protects the buyer by proving they own the vehicle and protects the seller by showing they no longer do.
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, the vehicle identification number (VIN), the make and model of the car, the year, the odometer reading, the sale price, and the date of sale. Some states also require the title number or the condition of the vehicle (for example, "as-is" or "with warranty").
Both the seller and the buyer must sign and print their names on the bill of sale. Some states require the signatures to be notarized — that means a notary public watches you sign and stamps the document to confirm you did. Check your state DMV website to see whether notarization is required where you live.
You do not need to include how you were paid (cash, check, financing) unless your state DMV specifically asks for it. You also do not need to describe the condition of the car in detail, though many sellers write "sold as-is" to make clear they are not making any promises about how well it runs.
Where to find your state's bill of sale form
Most state DMV websites have a bill of sale form you can read and print. Search "[your state] DMV bill of sale" and look for a PDF or Word document on the official state website. The form will have blanks for all the information the DMV requires.
If your state does not provide a form, you can write one yourself or use a template from a legal document website. The key is that it must include all the information listed above and be signed by both parties. A handwritten bill of sale is legal in most states as long as it has all required details and both signatures.
Do not use a bill of sale form from another state. Each state's DMV has different requirements, and using the wrong form can delay your title transfer. Stick to the form your state provides or write one that matches your state's requirements.
When the seller and buyer sign the bill of sale
The bill of sale should be signed at or before the time money changes hands. Ideally, both the seller and buyer sign it together when the sale happens, so there is no question about when ownership transferred. If you are buying a car, do not hand over money until the seller has signed the bill of sale.
The buyer needs to keep the bill of sale and bring it to the DMV when they explore for a new title. The seller should keep a copy for their records. If there is ever a dispute about when the sale happened or who owned the car, the bill of sale is the proof.
If you are buying a car from a private seller and they do not have a bill of sale form ready, ask them to fill one out before you pay. If they refuse or seem uncomfortable, that is a warning sign. A legitimate seller will have no problem documenting the sale in writing.
Scams and safety concerns with bills of sale
Do not buy a car from someone who refuses to sign a bill of sale or who wants to sign one after you have already paid. This is a major red flag. A bill of sale protects you by proving you own the car; without it, you have no legal proof of ownership even if you paid cash.
Do not accept a bill of sale with blank spaces or information you did not agree to. Make sure the VIN, price, and date are all correct before you sign. If the seller changes the price or VIN after you sign, the DMV may reject the title transfer or you may end up in a dispute about what you actually bought.
Be cautious if a seller asks you to list a lower price on the bill of sale than what you actually paid. This is sometimes done to avoid taxes or to hide the true value of the sale. It is illegal in most states, and if the DMV discovers it, they can reject the title transfer and you may face penalties.
If you are buying from a dealer instead of a private seller, the dealer will provide the bill of sale as part of the paperwork. Read it carefully and make sure all information is correct before you sign. Dealers are required to provide this document, so if one refuses, report it to your state's attorney general or consumer protection office.
What happens after you sign the bill of sale
Once both parties have signed, the buyer takes the bill of sale to the DMV along with the seller's original title, proof of insurance, and a completed title transfer form. The DMV will review the bill of sale to make sure it matches the title and contains all required information. If everything is correct, they will issue a new title in the buyer's name.
The seller's job is done once they sign the bill of sale and hand over the title. However, the seller should keep a copy of the signed bill of sale for their records. If there is ever a question about when they sold the car or whether they still own it, the bill of sale proves they do not.
If the DMV rejects the bill of sale, they will tell you why — usually because information is missing, does not match the title, or signatures are not notarized when required. You and the seller can then fix the problem and resubmit.
Bill of sale for vehicles with a lien or loan
If the seller still owes money on the car (has a lien), the bill of sale should note this. The lien holder's name and address should appear on the document. The buyer needs to know they are buying a car with a loan against it, and the DMV needs to know so they can handle the title correctly.
In most cases, the seller must pay off the loan before the title can transfer to the buyer. The bill of sale can state that the sale is contingent on the lien being paid off, or it can note that the buyer is taking over the loan. Check with your state DMV about how to handle this situation, because the rules vary.
If you are buying a car with an existing loan, do not sign the bill of sale or hand over money until you understand who is responsible for paying it off. This should be spelled out clearly in the bill of sale.
Frequently Asked Questions
Can I write my own bill of sale or do I have to use my state's form?
You can write your own as long as it includes all required information: both parties' names and addresses, the VIN, make, model, year, sale price, date, and both signatures. However, using your state's official form is safer because you know it meets all DMV requirements. Check your state DMV website first.
Does a bill of sale have to be notarized?
It depends on your state. Some states require notarization; others do not. Check your state DMV website or call them to find out. If notarization is required and you submit an unnotarized bill of sale, the DMV will reject it and you will have to get it notarized and resubmit.
What if I lost the bill of sale after I bought the car?
Contact the seller and ask for a copy. If you cannot reach them, contact your state DMV and explain the situation. Some states allow you to file a statutory bill of sale or affidavit in place of the original, though this varies. Call your DMV to learn what options are available.
Can I sell a car without a bill of sale?
Legally, no. The buyer will not be able to register the car or get a title without a bill of sale. You are also leaving yourself unprotected — without a bill of sale, you have no proof you sold the car, and the buyer could claim you still own it. Always sign one.
What if the seller and I disagree on the price that should go on the bill of sale?
The price on the bill of sale must match what you actually agreed to pay. If you disagree, do not sign it. Resolve the disagreement before you hand over money or sign anything. If the seller insists on listing a different price, walk away — this is a sign of a dishonest transaction.