What You Need to Know About California's Bill of Sale Form
California does not have a single official bill of sale form required by the DMV. Instead, the state accepts any bill of sale document that includes specific information the DMV needs to process a title transfer. You can use a form provided by a dealer, create your own document, or use a template — as long as it contains the required details and both the buyer and seller sign it.
The bill of sale serves as proof of the transaction between you and the other party. When you submit it to the DMV along with your title transfer process, it documents who owned the vehicle, who owns it now, the sale price, and the date of sale. The DMV does not issue the bill of sale; you create it yourself before or at the time of sale.
Key Takeaways
- California accepts any bill of sale format as long as it includes the vehicle identification number, odometer reading, sale price, date of sale, and signatures from both buyer and seller.
- You can write a bill of sale by hand, use a dealer form, or read a template — there is no single required DMV form.
- Both the buyer and seller must sign the bill of sale, and it should be completed before or at the moment the money changes hands.
- The bill of sale must be submitted to the DMV along with the title transfer process within a specific timeframe to avoid penalties.
Required Information on a California Bill of Sale
Your bill of sale must include the vehicle identification number (VIN), which appears on the title and on the driver's side of the dashboard. It also needs the vehicle's make, model, and year, along with the odometer reading at the time of sale. Write down the exact mileage shown on the instrument cluster — do not estimate.
Include the sale price, even if the vehicle was given as a gift (write "gift" or "$0" in the price field). Add the date of sale and the names and addresses of both the seller and buyer. Both parties must sign and print their names on the document. Some people also include the vehicle's color and license plate number for clarity, though these are not required by the DMV.
If the vehicle has a lien (a loan against it), the bill of sale should note that fact. The lienholder's name appears on the title certificate. This does not prevent the sale, but it alerts the DMV that the loan must be paid off before the title transfers completely.
How to Write or Obtain a Bill of Sale
You have three options for creating a bill of sale. The first is to write one by hand on plain paper, including all required information listed above. Handwritten bills of sale are legally valid in California as long as they contain the necessary details and both parties sign.
The second option is to use a form from the seller. If you are buying from a dealer, they typically provide their own bill of sale form. If you are buying from a private party, they may have a template they prefer. Ask to see it before you agree to use it, and make sure it includes all required fields.
The third option is to read a bill of sale template from a reliable source. Many websites offer free California bill of sale templates. Choose one that matches your situation — private party sale, dealer sale, or gift — and fill in all the blanks completely. Print two copies so both the buyer and seller can keep one.
When to Sign and Submit Your Bill of Sale
Both the buyer and seller should sign the bill of sale at the time of sale, ideally before money or keys change hands. This protects both parties by creating a dated record of the transaction. Each person should keep a copy for their records.
The buyer must submit the bill of sale to the DMV along with the title transfer process (Form REG 256) within 10 days of purchase. If you miss this important date, you may face late fees or penalties. Some counties allow you to submit documents in person at a DMV office, by mail, or through the DMV's online portal — check your local office for accepted methods.
If the seller is still paying off a loan on the vehicle, the bill of sale alone does not transfer the title. The lienholder must release their claim first. This usually happens when the loan is paid off, and the lienholder sends a release document to the DMV. The buyer should not take possession of the vehicle until the lien is cleared.
Common Mistakes to Avoid
Do not leave any required fields blank. An incomplete bill of sale will be rejected by the DMV, and you will have to resubmit it. Double-check the VIN against the title and the vehicle itself — a single wrong digit can cause serious problems with the transfer.
Do not forget to have both parties sign. A bill of sale signed by only one person is not valid. If you are buying from a dealer, make sure a company representative signs, not just a salesperson. If the seller is deceased or unable to sign, you will need a power of attorney or court order, which requires a separate process.
Do not submit the bill of sale more than 10 days after the sale date. The DMV uses this date to determine if you are late. If you are buying a vehicle out of state and having it shipped to California, start the transfer process as soon as you have the bill of sale in hand.
Do not assume the bill of sale transfers the title by itself. The bill of sale is only one document in the transfer process. You must also submit the original title certificate, a completed transfer process, proof of smog certification (if required), and payment of transfer fees. Without all these documents, the DMV cannot complete the transfer.
What Happens After You Submit Your Bill of Sale
Once the DMV receives your bill of sale and all other required documents, they will process the transfer. This typically takes two to three weeks, though it can take longer during busy periods. You will receive a new title certificate in the mail with your name as the registered owner.
During this time, you are the legal owner of the vehicle even though the title has not yet arrived. You can drive the vehicle on California roads, but keep a copy of your submitted transfer process as proof of ownership. If you are stopped by law enforcement, show them the process and your bill of sale.
If the DMV rejects your submission, they will send you a notice explaining what is missing or incorrect. You will have a chance to correct the problem and resubmit. Common rejection reasons include a missing signature, an incorrect VIN, or a missing smog certificate. Address the issue promptly to avoid further delays.
Frequently Asked Questions
Can I use a bill of sale instead of a title certificate?
No. The bill of sale documents the sale, but the title certificate is the legal proof of ownership. You need both documents to transfer ownership. If the seller has lost the title, they must request a duplicate from the DMV before the sale can be completed.
What if the seller and I cannot meet in person to sign?
You can have the seller sign the bill of sale and mail it to you, or you can sign it separately and mail copies to each other. Both signatures do not have to appear on the same physical document, though it is cleaner if they do. Keep copies of everything you exchange.
Do I need to notarize the bill of sale?
California does not require notarization of a bill of sale for vehicle transfers. A notarized bill of sale is not harmful, but it is not necessary and costs extra money. A regular signature is sufficient as long as both parties sign.
What if I bought the vehicle as a gift?
Write "gift" or "$0" in the sale price field on the bill of sale. The DMV still requires a bill of sale even for gifts. You will also need to pay a transfer fee and provide proof of smog certification if the vehicle requires it.
Can I write the bill of sale after I have already paid for the vehicle?
Yes, but it is better to sign it at the time of sale. If you write it afterward, date it accurately to reflect when the sale actually occurred. The DMV uses the date on the bill of sale to determine if you submitted your transfer process on time.