What a bill of sale is and why California requires it

A bill of sale is a written record that you sold a vehicle to someone else. In California, it is not required by law to transfer ownership — the title document itself does that — but you should create one anyway because it protects both you and the buyer. The bill of sale shows the date of the sale, the vehicle details, the price paid, and the signatures of both parties. If a dispute arises later about who owned the car on a certain date, or whether the sale actually happened, the bill of sale is your proof.

The California Department of Motor Vehicles does not issue a standard bill of sale form, and you do not have to use any particular template. You can write one yourself on plain paper, use a form from a private seller, or read one from a third-party website. What matters is that it contains the essential information and is signed by both the seller and the buyer.

The bill of sale also protects you from liability. Once you have sold the vehicle and the buyer has signed the bill of sale, you are no longer responsible for what happens to that car — even if the buyer does not register it right away or gets into an accident before transferring the title.

Key Takeaways

  • California does not require a bill of sale by law, but creating one protects both seller and buyer by documenting the sale date, vehicle details, price, and signatures.
  • The DMV does not provide an official bill of sale form; you can write one yourself, use a private template, or read one from a reputable third-party source.
  • A bill of sale should include the vehicle identification number (VIN), make, model, year, odometer reading, sale price, and the printed names and signatures of both parties.
  • Signing a bill of sale does not transfer the title; only submitting the title document to the DMV transfers ownership, but the bill of sale proves when the sale occurred.
  • Keep a copy of the signed bill of sale for your records, especially if you are the seller, to protect yourself from future liability or disputes.

What information to include on a California bill of sale

A bill of sale should contain enough detail that anyone reading it years later would know exactly which vehicle was sold, when, and for how much. Start with the vehicle itself: the year, make, model, body style, color, and most importantly the Vehicle Identification Number (VIN). The VIN is a 17-character code found on the driver's side of the dashboard, on the title document, and on the registration card. Without the VIN, the bill of sale is nearly useless because two people could argue about which car you meant.

Next, record the odometer reading at the time of sale. This is the number of miles on the car. California law requires this on the title transfer form anyway, so including it on the bill of sale keeps everything consistent and prevents the buyer from later claiming the mileage was different.

Add the sale price in dollars. Write out the number in words as well as numerals — for example, "One thousand five hundred dollars ($1,500)" — to prevent someone from altering the amount later. If the sale included a trade-in or other consideration besides cash, describe that too.

Include the date of the sale, the full printed names of both the seller and buyer, and their signatures. Some people also add their addresses and phone numbers, which can be helpful if questions arise later. Both parties should sign and date the document, and it is wise for each to keep a copy.

Where to find a bill of sale form

You have several options for obtaining a bill of sale form. The simplest is to write one yourself using the information above — there is no legal requirement that it follow a specific format. If you prefer a template, the California DMV website does not provide one, but many reputable sources do.

The American Automobile Association (AAA) offers a bill of sale form for members and non-members. Legal document websites such as LegalZoom and Rocket Lawyer provide templates you can customize. Some car-buying websites like Edmunds and Kelley Blue Book also host free bill of sale forms designed for California.

If you buy a used car from a private seller, ask them to provide the bill of sale or offer to prepare one yourself. Many private sellers already have a form they use. The key is to make sure it includes all the information listed above and that both parties sign it before the money changes hands.

Scam alert: Be cautious of websites that charge money for a bill of sale form or claim to be the "official" DMV form. The DMV does not sell forms, and you can create a legal bill of sale for free. If a website asks for payment or personal information beyond what you would write on the form itself, look elsewhere.

How a bill of sale relates to the title transfer

A bill of sale and a title transfer are two different documents that serve different purposes. The title is the official DMV document that proves who owns the vehicle. Transferring the title to the buyer's name is what actually changes ownership in the eyes of the law and the DMV. The bill of sale is a private record between you and the buyer that documents when and for how much the sale occurred.

You can sign a bill of sale without transferring the title, and you can transfer the title without a bill of sale (though you should not). The buyer cannot legally own the car until the title is in their name at the DMV. However, once you have signed the bill of sale, you have a dated record proving you no longer owned it, which protects you if something goes wrong before the title transfer is complete.

In practice, the seller and buyer should sign the bill of sale at the same time they sign the title transfer form. The buyer then takes both documents to the DMV to register the vehicle in their name. The bill of sale stays in the buyer's records as proof of purchase, and the seller keeps a copy as proof of sale.

Protecting yourself as a seller

If you are selling a vehicle, sign and keep a copy of the bill of sale before handing over the keys. Do not rely on the buyer to handle the title transfer — follow up with the DMV a few weeks later to confirm the title has been transferred. You can check the status online through the California DMV website or call them directly.

The reason this matters: if the buyer does not transfer the title and later gets a parking ticket, is in an accident, or commits a crime with the vehicle, the ticket or citation may come to you because the DMV still shows you as the owner. The bill of sale proves you sold it, but you will have to show it to clear your name. Confirming the transfer happened saves you that headache.

Also note that California law allows you to file a Notice of Transfer and Release of Liability with the DMV within 30 days of the sale. This form officially tells the DMV that you no longer own the vehicle and are not responsible for it. You can file this online, by mail, or in person. It is an extra layer of protection beyond the bill of sale.

What to do if you lose the bill of sale

If you have already sold the vehicle and signed a bill of sale but cannot find your copy, you can ask the buyer for theirs. If neither of you has it, you can recreate one based on your records — write down the date of sale, vehicle details, and price from memory or from your bank records, then have both parties sign it. It will not be as strong as the original, but it is better than nothing.

If you are the buyer and have lost the bill of sale, it does not affect your ownership as long as the title is in your name. The bill of sale is mainly useful to the seller as proof they no longer own the car. If you need to prove you purchased the vehicle for warranty or insurance purposes, your title transfer receipt from the DMV serves that purpose.

Frequently Asked Questions

Do I have to use the DMV bill of sale form?

California does not have an official DMV bill of sale form. You can write one yourself, use a private template, or read one from a third-party website. What matters is that it includes the VIN, sale date, price, and signatures of both parties.

Can I sell a car without a bill of sale?

Legally, yes — California does not require one. However, you should create one anyway because it protects you by proving when you sold the vehicle and that you are no longer responsible for it. Without a bill of sale, disputes about the sale date or price become harder to settle.

What if the buyer and I disagree on the sale price?

This is why you sign the bill of sale before handing over the keys and money. Once both parties have signed, the price is documented. If a dispute arises after the sale, the signed bill of sale is your evidence. Never hand over the vehicle until the bill of sale is signed.

Does signing a bill of sale transfer ownership?

No. Signing a bill of sale documents that a sale occurred, but it does not transfer the title. Only submitting the title document to the DMV transfers ownership. The buyer must take the signed title transfer form to the DMV to become the legal owner.

How long should I keep a copy of the bill of sale?

Keep it as long as you own the vehicle or until you are certain the title has been transferred and the DMV shows the new owner. After that, you can keep it indefinitely for your records, but you do not need it for any DMV purpose once the transfer is complete.