A bill of sale is a written record that you sold a vehicle to someone else, and it protects both you and the buyer in case of disputes later
When you sell a car, truck, or motorcycle, a bill of sale documents the transaction — who owned it, who bought it, what they paid, and when the sale happened. Your state's DMV uses this document to transfer the title from your name to the buyer's name. Without it, the DMV cannot process the title transfer, and the buyer cannot legally register the vehicle in their name.
A bill of sale is not the same as a title. The title is the legal proof of ownership issued by the DMV. The bill of sale is the receipt and agreement that proves the sale took place. You need both documents for a clean transfer.
Most states do not require a specific form — you can write one yourself on plain paper, or use a template. Some states provide an official template on their DMV website. Either way, the document must include the same basic information: the vehicle details, the seller's information, the buyer's information, the sale price, and the date.
Key Takeaways
- A bill of sale is a written record of the vehicle sale that both the seller and buyer sign, and it is required by the DMV to transfer the title.
- Most states do not mandate a specific form, so you can use a template from your state's DMV website, a generic template, or write one yourself as long as it includes all required information.
- The bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the full names and addresses of both the seller and buyer.
- Both the seller and buyer should keep a signed copy of the bill of sale for their records, even after the title transfer is complete.
- A bill of sale protects you as the seller by proving you no longer own the vehicle, which can shield you from liability if the buyer gets into an accident or breaks traffic laws after the sale.
What information must be on the bill of sale
The bill of sale should include the vehicle's complete identification number (VIN), make, model, year, and color. This ensures there is no confusion about which vehicle is being sold. You can find the VIN on the title, the dashboard, or the driver's side door jamb.
Both the seller and buyer must provide their full legal names, street addresses, phone numbers, and driver's license numbers. Some states also ask for the buyer's email address. The more detail you include, the harder it is for someone to claim later that they did not agree to the sale.
Write the sale price in both numbers and words — for example, "$5,000 (five thousand dollars)" — to prevent disputes over the amount. Include the date the sale took place, not the date you are signing the document. Both the seller and buyer must sign and print their names on the bill of sale.
If the vehicle has a lien (meaning a bank or lender still owns part of it), note that on the bill of sale. The buyer needs to know they are responsible for paying off the loan, or the title transfer may be delayed.
Where to find a bill of sale template
Your state's DMV website usually offers a free bill of sale template that meets state requirements. Search "[your state] DMV bill of sale" to find the official version. Using your state's template removes the guesswork about what information is required.
If your state does not provide a template, you can use a generic template from a reputable source. The American Automobile Association (AAA) and the National Association of Secretaries of State both offer free templates that work in most states. Make sure the template you choose is recent — older templates may not include fields for information your state now requires.
You can also write a bill of sale from scratch on plain paper or in a document you create yourself. As long as it includes the required information and is signed by both parties, most states will accept it. However, using a template is faster and less likely to have missing details.
How to fill out and sign the bill of sale
Print or write the bill of sale clearly so every word is legible. Fill in all blanks with the correct information — do not leave fields empty or write "N/A." If a field does not explore to your sale, write "not applicable" instead of leaving it blank, so it is clear you did not overlook it.
Both the seller and the buyer should review the completed bill of sale before signing. Make sure the VIN, price, and names are correct. If either party notices an error, cross it out, write the correction above it, and both parties should initial the change. Do not use white-out or tape, as that can raise questions about whether the document was altered after signing.
Sign and date the bill of sale in front of a witness if possible, though most states do not require it. A witness adds credibility if there is ever a dispute. Each party should keep a signed copy for their records. The buyer will need their copy when they go to the DMV to register the vehicle.
When to give the bill of sale to the buyer
Complete and sign the bill of sale at the time of the sale, before the buyer takes possession of the vehicle. This is the safest approach because both parties are present and can verify the information together. If you sign it after the buyer has already driven away, you lose the chance to catch errors or disputes on the spot.
Give the buyer a signed copy when ready. Do not wait or promise to mail it later. The buyer needs the original or a certified copy to take to the DMV, and delays can cause problems with their registration.
Keep your own signed copy in a safe place. You will need it if the buyer does not transfer the title promptly and the vehicle is still registered in your name. If the vehicle is involved in an accident or traffic violation after the sale, your copy of the bill of sale proves you were no longer the owner at that time.
Scam alert: Fake bills of sale and title washing
Do not sign a blank bill of sale or one with information you have not verified. Scammers sometimes ask sellers to sign a bill of sale with incomplete information, then fill in false details later — such as a lower price to reduce taxes, or a different buyer's name to hide the real buyer's identity. Always fill in and review the complete bill of sale before you sign.
If you are the buyer, be cautious of sellers who seem reluctant to complete a bill of sale or who want to skip it entirely. A legitimate seller will have no problem documenting the sale. A seller who avoids a bill of sale may be hiding something — such as an outstanding loan on the vehicle, or a history of accidents or damage.
Never accept a bill of sale that lists a price much lower than what you actually paid. Some buyers ask sellers to do this to reduce sales tax, but it is tax fraud and can expose you to legal liability. The price on the bill of sale must match what you actually paid.
What happens after the buyer submits the bill of sale to the DMV
The buyer takes the signed bill of sale, the original title, and other required documents to the DMV to register the vehicle in their name. The DMV uses the bill of sale to confirm the sale took place and to process the title transfer. This usually takes one to four weeks, depending on how busy your state's DMV is.
Once the title transfer is complete, the vehicle is no longer registered in your name. You are no longer responsible for registration fees, property taxes, or traffic violations involving that vehicle. This is why keeping your signed copy of the bill of sale is important — it is your proof that you sold the vehicle on a specific date.
If the buyer does not transfer the title within a reasonable time (usually 30 days), contact them and ask for proof that they have submitted the paperwork to the DMV. If they do not respond or the title is not transferred after 60 days, you may need to contact your state's DMV to report the sale and request that the registration be removed from your name.
Frequently Asked Questions
Can I use a bill of sale instead of transferring the title?
No. A bill of sale documents the sale, but only the DMV can transfer the title. The buyer must take the bill of sale and the original title to the DMV to register the vehicle in their name. Without a title transfer, the vehicle remains registered to you, and you remain legally responsible for it.
What if I lost my copy of the bill of sale after the sale?
Contact the buyer and ask them for a copy of the signed bill of sale. If you cannot reach them, you can request a copy of the title transfer record from your state's DMV, which will show the sale date and the buyer's name. Keep that record in case questions arise later about when you sold the vehicle.
Do I need a notary to sign a bill of sale?
Most states do not require notarization of a bill of sale. A notary adds an extra layer of verification, but it is not necessary for the DMV to process the title transfer. Check your state's DMV website to confirm whether notarization is required in your state.
What if the buyer and I agree on a price but they pay me less than that?
The bill of sale must show the actual amount paid, not the agreed-upon amount. If the buyer negotiates the price down at the last minute, update the bill of sale to reflect the new price before you both sign. Both parties should agree to the final price in writing.
Can I sell a vehicle without a bill of sale?
Technically, you can sell a vehicle without a bill of sale, but it is not recommended. Without a bill of sale, you have no written proof that the sale took place or when it happened. If the buyer does not transfer the title and the vehicle is involved in an accident or crime, you could be held liable. A bill of sale protects you by documenting that you no longer owned the vehicle after the sale date.