What a California bill of sale is and why you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold it to you. In California, it is not required by law to transfer ownership — the DMV handles that through the title document itself — but you should create one anyway because it protects both the buyer and seller if a problem comes up later.
The bill of sale becomes your proof of the transaction: who owned the car, who bought it, when the sale happened, how much was paid, and what condition the car was in. If the buyer gets into an accident before the title transfers, or if they fail to register the car and it gets a ticket, the bill of sale shows you are no longer responsible. If you are the buyer, it shows you paid for the car and when, which matters if the seller later claims you still owe money or if the title has a lien on it that was not disclosed.
California does not have an official state bill of sale form, which means you can write one yourself or use a template. The DMV does not require you to file it, but you should keep a copy for your records.
Key Takeaways
- California law does not require a bill of sale, but creating one protects you by documenting the sale price, date, vehicle condition, and both parties' names and signatures.
- You can write your own bill of sale or use a template — there is no official state form, and the DMV does not need to see it.
- A bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, and signatures from both buyer and seller.
- The bill of sale is separate from the title transfer process; you still need to submit the title to the DMV to change ownership officially.
What information to include on a California bill of sale
Your bill of sale should contain enough detail that either party can prove what was agreed to if a dispute arises later. At minimum, include the seller's name and address, the buyer's name and address, the date of sale, and the sale price in dollars. Do not leave the price blank or write "as is" — write the actual amount paid, even if it was a gift (in which case you can write "gift" or "$0").
Add the vehicle's full identification number (VIN), which you can find on the title, the driver's side dashboard, or the door jamb. Include the year, make, model, and color. Write down the odometer reading at the time of sale — this is important because it documents the mileage and helps prevent odometer fraud. Note the vehicle's condition: whether it runs, whether there are mechanical issues, body damage, or other problems the buyer should know about.
Both the seller and buyer must sign and date the bill of sale. If either party is a business or has a representative sign on their behalf, that person should print their name and title below their signature. Some people have the bill of sale notarized, which adds an extra layer of proof, but California does not require it.
How a bill of sale differs from the title transfer
The bill of sale and the title are two separate documents that serve different purposes. The title is the official ownership document issued by the California DMV. It shows who the DMV recognizes as the legal owner. The bill of sale is your private record of the transaction between you and the other party.
When you sell a car in California, you sign the back of the title to release your ownership, and the buyer takes that signed title to the DMV to register it in their name. The bill of sale is not filed with the DMV — you and the buyer each keep a copy. The title proves ownership; the bill of sale proves the sale happened and on what terms.
This matters because the title can take weeks to arrive in the mail after you submit it, but the bill of sale is in your hands when ready. If something goes wrong during that waiting period — the buyer gets a ticket, has an accident, or does not register the car — your bill of sale shows the DMV and any court that you transferred ownership on a specific date.
Scams and safety concerns with bills of sale
If you are buying a used car, watch for sellers who refuse to create a bill of sale or who want to write one that shows a lower price than you actually paid. A low price on paper can be a sign the seller is trying to hide income or that the car has a problem they do not want documented. It also leaves you vulnerable: if the seller later claims you owe more money, you have no written proof of what you agreed to.
Never sign a blank bill of sale or one with blank spaces you plan to fill in later. Never agree to a bill of sale that says the car is in perfect condition if it is not — that can be used against you later if the buyer claims you misrepresented it. If the seller pressures you to sign something quickly without reading it, walk away.
If you are selling, be cautious about accepting a very low price or a payment method you cannot verify when ready, like a personal check. Some buyers write a bill of sale showing a lower price than they actually paid you, then later claim to the DMV that you misrepresented the car's condition. Keep your own copy of the bill of sale and any payment records (bank transfer confirmation, cash receipt, etc.) in case you need to prove what happened.
Where to get a bill of sale template
You do not need to buy a template — several are available free online. The California DMV website does not provide an official form, but many legal document sites and the California Secretary of State's office have templates you can read and print. Some auto clubs and insurance companies also provide templates to members.
When you choose a template, make sure it includes spaces for the VIN, odometer reading, sale price, and signatures from both parties. Read through it before you use it to make sure it matches California law and your situation. If you are uncomfortable writing your own or using a template, you can have an attorney draft one, though this is usually not necessary for a straightforward private sale.
Keep the bill of sale in a safe place — the same place you keep your title, registration, and insurance documents. If you are the seller, keep your copy even after the buyer registers the car, in case a question comes up later about the sale.
What happens if you do not have a bill of sale
California does not legally require a bill of sale, so you can transfer a title without one. However, you lose the protection it provides. If the buyer does not register the car and it gets a parking ticket or is involved in an accident, you may still be listed as the owner until the title officially transfers. Without a bill of sale, you have no written proof of when you sold it or to whom.
Similarly, if you are the buyer and something goes wrong with the car shortly after purchase, a bill of sale is your proof that you bought it on a specific date and in a specific condition. Without it, the seller can claim they never sold it to you or that you agreed to accept it "as is" with all its problems.
The title transfer itself is what changes ownership in the DMV's records, but that process takes time. The bill of sale is your when ready, portable proof that the transaction happened.
Frequently Asked Questions
Do I need a notary to sign a bill of sale in California?
No, California does not require a notary for a bill of sale. Both parties can sign it in front of each other or separately. A notary adds extra proof that the signatures are real, which can be useful if there is a dispute later, but it is not required and costs extra money.
What if I lost the bill of sale after I sold the car?
If you are the seller and no longer have your copy, you still have the title transfer you submitted to the DMV, which shows the date you released ownership. If you are the buyer and lost your copy, contact the seller and ask for another one, or write a new one together and both sign it. Keep it somewhere safe this time.
Can I use a bill of sale instead of transferring the title?
No. The bill of sale documents the sale, but only the title transfer changes who the DMV recognizes as the owner. You must submit the signed title to the DMV for the ownership to officially change. The bill of sale and title transfer are both necessary.
What if the seller will not sign a bill of sale?
A seller who refuses to document the sale in writing is a red flag. It suggests they may not actually own the car, the car may have a lien on it, or they are trying to hide something. Do not buy the car unless the seller agrees to sign a bill of sale. If you have already bought it, get one signed as soon as possible and keep it with your title.
Should I include the trade-in value if I traded in my old car?
If you traded in a car as part of the purchase, the bill of sale should show the actual cash price you paid for the new car, not the trade-in value. The trade-in is a separate transaction. Write down what you actually paid out of pocket or financed.