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. In California, it proves the transfer of ownership happened on a specific date, for a specific price, between two specific people. The DMV does not require you to use an official state form — you can write one yourself — but having a signed, dated bill of sale protects both you and the buyer if questions come up later about who owned the car and when.

The bill of sale becomes your proof that you are no longer responsible for the vehicle once the new owner registers it. Without one, you could face liability if the car is involved in an accident, gets a parking ticket, or is used in a crime after you sold it. The buyer needs it to show the DMV that they have the right to register the vehicle in their name.

California does not have a single mandatory bill of sale form that everyone must use. You can read a template, use one from a dealership, or create your own document — as long as it includes the required information and both parties sign it.

Key Takeaways

  • California does not require a specific bill of sale form, but you must include the vehicle identification number (VIN), sale price, date of sale, and signatures from both seller and buyer.
  • A bill of sale protects you from liability after the sale and gives the buyer proof of ownership to present to the DMV.
  • You can use the DMV's optional REG 135 form, read a template online, or write your own bill of sale as long as it contains all required information.
  • Both the seller and buyer should keep a signed copy of the bill of sale for their records.

What information must be on a California bill of sale

Your bill of sale must include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code found on the dashboard, door frame, or registration documents. It must also show the make, model, year, and color of the vehicle so there is no confusion about which car changed hands.

Include the sale price — even if the buyer paid cash, traded another vehicle, or the sale was a gift (in which case you would write "gift" or "$0"). The date of sale must be written clearly. Add the full legal names, addresses, and phone numbers of both the seller and the buyer, and both must sign and date the document.

Some sellers also note the vehicle's mileage and condition (for example, "sold as-is" or "with known mechanical issues"), though this is not required. If the vehicle has a lien or loan against it, that should be noted as well, since the buyer needs to know whether the title is clear.

Using the DMV's optional bill of sale form

The California DMV offers Form REG 135, a free optional bill of sale template. You can read it from the DMV website or pick up a copy at any DMV office. The form has blank spaces for all the required information: VIN, vehicle details, sale price, date, and signatures.

Using the DMV form is not required, but it is straightforward and accepted everywhere. If you use it, print it clearly, fill in all fields in black or blue ink, and make sure both parties sign and date it. You do not need to file it with the DMV — it is a document you and the buyer keep for your own records.

If you cannot access the DMV form or prefer a different template, any bill of sale that includes the required information will work. Some online sources offer free templates; others charge a small fee. The content matters more than the source.

Creating your own bill of sale

You can write a bill of sale from scratch on plain paper or in a word processor. Start with a heading like "Bill of Sale" at the top. Then add a sentence stating that the seller is selling the vehicle to the buyer, followed by all the required details: VIN, make, model, year, color, sale price, and date of sale.

Include a line for the seller's printed name, signature, and date, and another for the buyer's printed name, signature, and date. Add the addresses and phone numbers of both parties. You can also add a line stating the vehicle is sold "as-is" if that applies, or note any known issues.

Print two copies — one for you and one for the buyer. Both of you sign and date both copies. Keep your copy in a safe place; the buyer will need their copy when they register the vehicle with the DMV.

What happens after you sign the bill of sale

Once the bill of sale is signed, you should notify the California DMV that you have sold the vehicle. You can do this by submitting a Notice of Transfer and Release of Liability (Form REG 138) to the DMV within 5 days of the sale. This form tells the DMV that you no longer own the car and removes you from liability if the vehicle is involved in an accident or receives a ticket after the sale date.

You can submit the Notice of Transfer online through the DMV website, by mail, or in person at an office. If you do not file this form and the buyer does not register the vehicle right away, you could still be held responsible for violations or accidents involving the car.

The buyer should take their copy of the bill of sale to the DMV when they register the vehicle. They will also need the vehicle's title (unless it is a lien sale or the title is held by a lender), proof of insurance, and identification. The DMV will use the bill of sale to confirm the transfer of ownership.

Common mistakes to avoid

Do not leave any required fields blank. If you skip the VIN, sale price, or date, the bill of sale may not be accepted by the DMV or could create confusion later. Make sure both parties actually sign the document — a bill of sale with only one signature is not valid.

Avoid using a pencil; use black or blue ink so the document is permanent and clear. Do not backdate or postdate the bill of sale — use the actual date of the sale. If you make a mistake, cross it out, write the correction above it, and have both parties initial the change.

Do not assume the buyer will register the vehicle when ready. Even if they do not, you are still protected once you file your Notice of Transfer with the DMV. Keep your copy of the bill of sale and your Notice of Transfer receipt for at least a few years in case questions arise.

Scam alerts and safety tips

Be cautious if a buyer asks you to sign a blank bill of sale or one with false information. Never agree to a sale price lower than what you actually received — this is sometimes used to evade taxes or hide money laundering, and you could face legal questions later.

Do not hand over the vehicle keys or title until the bill of sale is signed by both parties. If you are selling to someone you do not know, meet in a public place during daylight and bring someone with you. Do not accept a personal check unless you have time to verify it clears before releasing the car.

Watch out for scams where a buyer claims they will "handle the paperwork" and asks you to sign documents you have not read. Always read the bill of sale yourself before signing, and keep a copy. If someone pressures you to sign quickly or seems evasive about details, walk away from the sale.

Frequently Asked Questions

Can I sell a car without a bill of sale in California?

Technically, you can, but it is not wise. Without a bill of sale, you have no proof of when or to whom you sold the vehicle, which leaves you vulnerable to liability. The buyer also has no proof of ownership to show the DMV. A bill of sale takes minutes to create and protects both parties.

What if the buyer does not register the vehicle right away?

File your Notice of Transfer and Release of Liability (Form REG 138) within 5 days of the sale anyway. This removes you from liability even if the buyer delays registration. Keep your receipt and a copy of the bill of sale in case the DMV needs proof of the sale date later.

Do I need a notary to sign a bill of sale?

No, a notary is not required in California. Both parties just need to sign and date the bill of sale in front of each other. However, having it notarized adds an extra layer of proof that the signatures are genuine, which can be useful if a dispute arises later.

What if I sold the car to a family member or as a gift?

You still need a bill of sale. Write the sale price as "gift" or "$0" and have both parties sign it. This documents the transfer of ownership and protects you from liability. The buyer will still need to register the vehicle and pay registration fees, even if no money changed hands.

Can I use a bill of sale from another state?

A bill of sale from another state is not ideal for a California DMV transaction, but the information it contains may be acceptable if it includes all required details: VIN, vehicle description, sale price, date, and both signatures. It is safer to use a California bill of sale or create one yourself to avoid any questions.