What Colorado requires on a bill of sale

Colorado does not have an official state bill of sale form, but the document you create must include specific information for the Colorado Division of Motor Vehicles to accept it during title transfer. The bill of sale is your proof of the transaction and protects both buyer and seller if questions arise later.

Your bill of sale must show: the vehicle identification number (VIN), make, model, and year; the sale price; the date of sale; the seller's printed name, signature, and address; and the buyer's printed name, signature, and address. If either party is a business or dealership, include the business name and the authorized person's signature. The document does not need to be notarized in Colorado, but many people choose to have it notarized anyway for extra protection.

You can write the bill of sale by hand on plain paper, type it yourself, or use a template. The DMV does not require a specific format as long as all required information is present and both parties sign it. Keep the original for your records and bring a copy when you transfer the title.

Key Takeaways

  • Colorado has no official bill of sale form, so you can create one yourself on plain paper with the required information.
  • The document must include the VIN, vehicle details, sale price, date, and signatures from both buyer and seller with their addresses.
  • Notarization is optional in Colorado but adds legal weight if a dispute arises later.
  • You will need the bill of sale when you submit your title transfer paperwork to the DMV, along with the signed title certificate.

Information to include on your bill of sale

Start with a clear heading at the top: "Bill of Sale" or "Vehicle Bill of Sale." Then list the vehicle information section first. Write the full VIN, the year, make, model, body style (sedan, truck, SUV), and color. Include the odometer reading at the time of sale—this is required by federal law and protects the buyer against odometer fraud.

Next, add the sale price in dollars. Write out the amount in both numbers and words to avoid confusion (for example, "$5,500" and "Five Thousand Five Hundred Dollars"). If the vehicle is being given as a gift or transferred for no money, write "Gift" or "$0" and note that no payment changed hands.

Add the date of sale, the seller's full name and address, and the seller's signature. Then add the buyer's full name and address, and the buyer's signature. Both parties should sign and print their names on the same line or just below their signature. If either party is signing on behalf of a business, write the business name and the person's title (for example, "John Smith, Manager, Smith Auto Sales").

When you need a notarized bill of sale

Notarization is not required by Colorado law, but it is worth considering if you are selling a vehicle privately and want extra legal protection. A notary public will verify the identity of both parties, watch them sign, and stamp the document with an official seal. This creates a record that the signatures are genuine.

You can find a notary at most banks, credit unions, UPS stores, and some libraries. The cost is usually $5 to $15 per signature. If you choose to have the bill of sale notarized, both the buyer and seller should be present with valid photo ID. The notary will not review the accuracy of the information—they only confirm that the people signing are who they say they are.

How to use your bill of sale during title transfer

When the buyer is ready to transfer the title into their name, they will submit the bill of sale along with the signed title certificate to the Colorado DMV. The bill of sale serves as proof of the sale price and the transaction date. The DMV uses this information to calculate sales tax and to confirm that the vehicle changed hands legally.

The seller should keep a copy of the signed bill of sale for their records. This protects the seller if the buyer later claims they never received the vehicle or if there is a dispute about the sale price. The buyer should also keep a copy until the title is transferred and they receive the new registration.

If you are buying or selling through a dealership, the dealership will usually prepare the bill of sale for you. Private sales are your responsibility, so take time to fill it out completely and have both parties sign before money or keys change hands.

What happens if you sell without a bill of sale

Selling a vehicle without a bill of sale is legal in Colorado, but it creates risk for both parties. Without a written record, there is no proof of who owned the vehicle on what date, what the sale price was, or whether the sale actually happened. If the buyer later has an accident or gets a ticket, the seller could still be listed as the owner and held liable.

The buyer also loses protection. If the seller later claims the vehicle was stolen or disputes the sale, the buyer has no written evidence of the transaction. Creating a bill of sale takes 10 minutes and costs nothing, so it is worth doing even for a sale between friends or family members.

Common mistakes to avoid

Do not leave the VIN blank or write it incorrectly. The DMV will cross-check the VIN on the bill of sale against the title certificate, and mismatches can delay or block the transfer. Copy the VIN directly from the title or the vehicle's dashboard—do not rely on memory.

Do not forget the odometer reading. Federal law requires this on any bill of sale for a vehicle under 10 years old. Write the actual mileage at the time of sale, not an estimate. If the odometer is broken, write "Odometer Broken" or "Exempt" and explain why if you know.

Do not leave either party's address blank. The DMV needs addresses to process the transfer and to send registration documents to the correct location. If someone does not have a permanent address, use a mailing address or a friend's address with permission.

Do not sign the bill of sale before both parties have reviewed it and agreed on all terms. Once signed, it is a legal document. If you need to make changes after signing, both parties should initial the change and initial the correction.

Using a template or online form

Many websites offer free bill of sale templates for Colorado. These templates usually include all the required fields and language that protects both buyer and seller. You can read a template, fill in the blanks, print it, and have both parties sign it. This is faster than writing one from scratch and helps you avoid leaving out required information.

Some templates include extra clauses about the vehicle's condition, whether it is sold "as-is," or whether the seller is making any promises about repairs. These clauses are optional but can be useful if there is any question about the vehicle's state at the time of sale. Read any template carefully before using it, and make sure it matches Colorado law and your specific situation.

You can also create your own bill of sale in a word processor or by hand. The format does not matter as long as all required information is present and both parties sign it. Keep it straightforward and clear so there is no confusion later.

Frequently Asked Questions

Does Colorado require a notarized bill of sale?

No, notarization is not required by Colorado law. A bill of sale signed by both parties is legally valid without a notary. However, notarization adds an extra layer of proof that the signatures are genuine and can be helpful if a dispute arises later.

What if the seller will not sign the bill of sale?

The seller must sign the bill of sale for the transfer to be legal. If the seller refuses, do not complete the sale. A bill of sale protects both parties, and a seller who will not sign may be hiding something about the vehicle's history or ownership.

Can I use a bill of sale from another state?

Yes, as long as it includes all the information Colorado requires: VIN, vehicle details, sale price, date, and signatures from both parties with addresses. The format does not have to be Colorado-specific, but make sure nothing on the form contradicts Colorado law.

Do I need a bill of sale if I am trading in my vehicle at a dealership?

No, the dealership will handle the paperwork and create their own documentation of the trade-in. You will sign their forms instead of a separate bill of sale. Keep copies of everything the dealership gives you for your records.

What if I bought the vehicle years ago and do not have the original bill of sale?

You do not need the original bill of sale to sell the vehicle now. You only need the current title certificate in your name. Create a new bill of sale for the current sale, and that is all the DMV requires for the transfer.