What California requires on a bill of sale
California does not have an official state bill of sale form, but the DMV will accept any written document that includes specific information. You do not need to use a particular template — a handwritten note or a document you create yourself is legally valid as long as it contains the required details.
The bill of sale must show: the date of the sale, the names and addresses of both the seller and buyer, a description of the vehicle (year, make, model, body style, and Vehicle Identification Number), the odometer reading, and the sale price. If the vehicle has a lien (money still owed to a bank or lender), that must be noted on the bill of sale as well.
Both the seller and buyer must sign and date the document. The buyer will need this signed bill of sale when they register the vehicle with the DMV, and the seller should keep a copy for their records in case questions arise later about the transaction.
Key Takeaways
- California accepts any written bill of sale as long as it includes the date, both parties' names and addresses, vehicle details, odometer reading, sale price, and signatures from seller and buyer.
- You can write the bill of sale by hand or type it — there is no required form or template from the California DMV.
- If the vehicle has an outstanding loan, the lien holder's name must appear on the bill of sale.
- The buyer needs the signed bill of sale to complete vehicle registration, and the seller should keep a copy to prove the sale occurred.
How to create a bill of sale in California
Start with the date at the top. Then write or type the seller's full name and address, followed by the buyer's full name and address. Include a clear description of the vehicle: the year, make, model, body style (sedan, truck, SUV, etc.), color, and the complete Vehicle Identification Number from the dashboard or title.
Record the odometer reading as it appears on the vehicle at the time of sale. Write the sale price — the actual amount of money changing hands, not a lower figure to reduce taxes. If there is a lien on the vehicle, add the lien holder's name and the amount still owed. Both parties then sign and date the document.
Some sellers and buyers choose to note whether the sale includes any warranty or whether the vehicle is sold "as-is" with no warranty. This is optional but can prevent disputes later. Keep the language straightforward and clear so there is no confusion about what was agreed to.
When the buyer needs the bill of sale
The buyer must bring the signed bill of sale to the DMV when registering the vehicle. California law requires the buyer to register within 10 days of purchase, though the DMV will still accept late registrations with a penalty fee. The bill of sale serves as proof that the buyer owns the vehicle and has the right to register it.
If the vehicle has a lien, the buyer will also need to provide proof that the lien has been paid off or transferred to their name. The bill of sale documents the lien holder's name, which helps the DMV process the title correctly.
What happens if there is a lien on the vehicle
A lien means a bank, credit union, or other lender has a legal claim on the vehicle until the loan is paid off. The lien holder's name appears on the title, and the seller cannot transfer clear ownership to the buyer until the lien is removed.
The bill of sale should note the lien holder's name and the amount still owed. Usually, the seller pays off the loan at the time of sale using the money from the buyer, and the lender releases the lien. The seller then receives the title free and clear and can sign it over to the buyer.
If the lien is not paid off at sale, the buyer and seller must arrange for the lien to be transferred or satisfied before the buyer can register the vehicle. This is a more complicated transaction and should be documented clearly on the bill of sale to avoid confusion or legal problems later.
Differences between a bill of sale and a title
The bill of sale is a record of the transaction — it shows that a sale occurred, who was involved, and what was sold. The title is the legal document issued by the state that proves ownership of the vehicle. They serve different purposes and both are needed to complete a vehicle sale in California.
The seller signs the back of the title to transfer ownership to the buyer. The buyer then takes both the signed title and the bill of sale to the DMV to register the vehicle in their name. The bill of sale supports the title transfer by documenting the details of the sale and confirming that both parties agreed to it.
Protecting yourself as a seller
Keep a copy of the signed bill of sale for your records. This protects you if the buyer later claims they never bought the vehicle or if there is a dispute about the sale price or condition. The bill of sale is your proof that the transaction occurred and that you are no longer responsible for the vehicle.
Make sure the buyer's name and address are correct on the bill of sale. If the buyer later gets into an accident or receives a traffic ticket, you do not want to be mistaken for the owner. Confirm that the buyer has the title and bill of sale before you hand over the keys and the vehicle.
Some sellers also notify the DMV that they have sold the vehicle by submitting a Notice of Transfer and Release of Liability (Form REG 138). This is optional but recommended — it notifies the state that you are no longer the owner and protects you from liability if the buyer has an accident or unpaid traffic violations before they register the vehicle.
Common mistakes to avoid
Do not leave any required fields blank on the bill of sale. If the odometer reading, VIN, or sale price is missing, the buyer may have trouble registering the vehicle. Double-check that both parties have signed and dated the document before the buyer leaves with the vehicle.
Do not write in a sale price that is lower than the actual amount paid. Some sellers do this to reduce sales tax, but it is illegal and can result in penalties for both the buyer and seller. The bill of sale must reflect the true sale price.
Do not forget to note a lien if one exists. If the bill of sale does not mention an outstanding loan, the buyer may assume the vehicle is free and clear. This can lead to serious problems when the buyer tries to register the vehicle and discovers the lien holder still has a claim on it.
Frequently Asked Questions
Can I use a bill of sale template from online?
Yes. Many websites offer free California bill of sale templates that include all the required fields. You can read one, fill in the details, print it, and have both parties sign it. Make sure the template includes the date, names and addresses, vehicle description, VIN, odometer reading, sale price, and space for signatures.
What if I lose my copy of the bill of sale after I sell the vehicle?
You should have kept a copy before handing it to the buyer. If you did not, contact the buyer and ask them to provide you with a copy or confirm the sale details in writing. If you submitted a Notice of Transfer and Release of Liability to the DMV, that document also serves as proof that you sold the vehicle.
Do I need to notarize the bill of sale?
No. California does not require the bill of sale to be notarized. Signatures from both the seller and buyer are sufficient. However, some people choose to have it notarized for extra protection, and the DMV will accept a notarized bill of sale.
What if the buyer does not register the vehicle right away?
The buyer is required to register within 10 days, but if they do not, that is their responsibility, not yours. Submit your Notice of Transfer and Release of Liability to the DMV to protect yourself from liability. Keep your copy of the bill of sale in case questions arise later.
Can I sell a vehicle without a bill of sale?
Technically, the buyer can register the vehicle with just the signed title, but a bill of sale is strongly recommended. It documents the sale details and protects both parties by creating a clear record of the transaction. Without it, disputes about the sale price, condition, or terms can be harder to resolve.