A bill of sale is a written record that you and the seller sign to prove who owned a vehicle and when ownership changed hands
A bill of sale is a document that shows a vehicle was sold from one person to another. It records the seller's name, the buyer's name, the vehicle details (make, model, year, VIN), the sale price, and the date of the sale. Both the seller and buyer sign it. The bill of sale is not the same as a title — it is a record of the transaction itself, while the title is the legal ownership document. You need a bill of sale because it proves when and to whom the vehicle was sold, which protects both parties if questions come up later.
Most states do not require a bill of sale by law, but many DMVs recommend one and some lenders or insurance companies will ask for it. If you are buying or selling a vehicle, having a signed bill of sale makes the transaction clear and creates a paper trail. It can protect you if a dispute arises about the sale price, the condition of the vehicle, or who is responsible for it after the sale date.
Key Takeaways
- A bill of sale is a signed record of a vehicle sale that shows the seller, buyer, vehicle details, price, and date — it is not the same as a title.
- While most states do not legally require a bill of sale, having one protects both buyer and seller by creating a clear record of the transaction.
- Your state DMV website usually has a bill of sale form you can read and print, or you can use a generic template as long as it includes the required information.
- The bill of sale should be signed by both the seller and buyer in front of a witness or notary, depending on your state's rules.
- Keep a copy of the signed bill of sale with your vehicle records and title paperwork for your protection.
When you need a bill of sale and when it is optional
A bill of sale is legally required in some states and optional in others. Check your state DMV website to see whether your state mandates one. Even if your state does not require it, you should use one anyway — it costs nothing and protects you. A bill of sale becomes especially important if you are buying from a private seller rather than a dealer, because there is no dealership paperwork to fall back on.
Lenders and insurance companies often ask for a bill of sale when you finance a vehicle or add it to your policy. If you are selling a vehicle and the buyer will be financing it, they will likely need a bill of sale to show their lender. Some states also require a bill of sale if the vehicle is being transferred between family members or if it is a gift.
What information must be on a bill of sale
A bill of sale should 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 vehicle, the year, the odometer reading, the sale price, and the date of the sale. Some states also ask for the vehicle's color or license plate number. Both the seller and buyer must sign and print their names on the document.
If the vehicle has a lien (meaning a lender still owns part of it), the bill of sale should note that. Some states ask you to list the lienholder's name and the loan payoff amount. This protects the buyer by making clear that the seller does not own the vehicle outright and that the title will not transfer until the loan is paid off.
How to get a bill of sale form
Your state DMV website usually has a bill of sale form you can read for free. Search your state's name plus "bill of sale form" or look in the DMV's forms section under title transfer or vehicle sales. The form is typically a one-page PDF that you print and fill out by hand or on your computer.
If your state does not provide an official form, you can use a generic bill of sale template from a legal website or create your own as long as it includes all the required information. Some states accept handwritten bills of sale on plain paper, while others prefer a typed form. Check your state DMV website to see what format is accepted in your state.
Signing and witnessing the bill of sale
Both the seller and buyer must sign the bill of sale in front of a witness or notary public, depending on your state's rules. Some states require a notary signature; others accept a witness signature; some accept either. A witness is usually any adult who is not related to the buyer or seller and who watches both parties sign. A notary is a person licensed by the state to verify signatures and can be found at banks, UPS stores, or your county clerk's office.
Check your state DMV website to see whether your state requires a notary, a witness, or neither. If your state requires a notary, you will need to pay a small fee (usually $5 to $15) to have the document notarized. If a witness is acceptable, you can use a friend or family member as long as they are present when both parties sign.
What to do with the bill of sale after the sale
Keep a copy of the signed bill of sale with your vehicle title and registration documents. If you are the buyer, store it in a safe place — you may need it if you have to prove when you bought the vehicle or what you paid for it. If you are the seller, keep a copy as proof that you sold the vehicle on a specific date and are no longer responsible for it.
When you transfer the title at the DMV, you will usually submit the bill of sale along with the title process and other documents. The DMV will keep a copy on file. Having your own copy protects you if there is ever a question about the sale or if the other party claims the transaction happened on a different date or at a different price.
Bill of sale requirements by state
Bill of sale rules vary by state. Some states require the bill of sale to be notarized; others do not. Some states have an official form; others accept any written record as long as it has the required information. A few states do not require a bill of sale at all, though having one is still a good idea.
| Requirement | What this means |
|---|---|
| Notarization | Some states require a notary public to witness and verify signatures; others do not. |
| Official form | Some states provide an official bill of sale form; others accept any written document with the required information. |
| Witness requirement | Some states require at least one witness; others require a notary instead; some require neither. |
| Submission to DMV | Most states ask you to submit the bill of sale with your title transfer paperwork, but a few do not. |
Visit your state DMV website and search for "bill of sale" to find the exact rules for your state. If your state does not have an official form, call the DMV or check the title transfer section of the website to see what information must be included and whether a notary or witness is required.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a car dealer?
No. Dealers provide their own sales paperwork and title documents, which serve the same purpose as a bill of sale. You do not need a separate bill of sale when buying from a licensed dealer. You only need one when buying from a private seller.
Can I write a bill of sale by hand or does it have to be typed?
Most states accept a handwritten bill of sale as long as it is legible and includes all the required information. Some states prefer a typed form, so check your state DMV website. Either way, both parties must sign and print their names, and it must be witnessed or notarized if your state requires it.
What if the seller will not sign the bill of sale?
If the seller refuses to sign, do not complete the purchase. A bill of sale protects you by proving the seller agreed to sell you the vehicle on a specific date and at a specific price. Without it, you have no written record of the transaction. If the seller will not sign, it is a red flag that something may be wrong with the vehicle or the sale.
Do I need to file the bill of sale with the DMV or just keep a copy?
Most states ask you to submit the bill of sale to the DMV along with your title transfer process. The DMV will keep it on file. You should also keep your own copy for your records. Check your state DMV website to see whether you need to mail it, submit it in person, or upload it online.
Can I use a bill of sale for a vehicle with a lien on it?
Yes, but the bill of sale must note that the vehicle has a lien and include the lienholder's name. The title will not transfer to the buyer until the lender is paid off. The seller is responsible for paying off the loan, and the buyer should not take possession of the vehicle until the lien is cleared and the title is free and clear.