What an Alabama bill of sale is and when you need one

A bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a vehicle. In Alabama, it serves as proof that money or value changed hands and that ownership moved from one person to another. You need one whenever you sell or buy a vehicle privately — not through a dealership — and it protects both parties by creating a paper trail.

The state does not require a specific form, which means you can write one yourself or use a template. However, the document must contain certain information to be useful when you register the vehicle or resolve disputes later. Many people use the form provided by the Alabama Department of Revenue, Motor Vehicle Division, though a handwritten agreement with the right details will work just as well.

If you buy or sell through a dealership, the dealer handles the bill of sale as part of their paperwork. You only need to create one yourself for private sales between individuals.

Key Takeaways

  • Alabama does not mandate a specific bill of sale form, but the document must include the vehicle identification number (VIN), the sale price, the date, and signatures from both buyer and seller.
  • The Alabama Department of Revenue provides a free template that meets state requirements, though a handwritten bill of sale with the required details is legally valid.
  • Both the buyer and seller should keep a signed copy for their records, and the buyer will need the bill of sale when registering the vehicle with the state.
  • A bill of sale does not transfer title — you must file the title document itself with the Alabama Department of Revenue to complete the ownership transfer.

Information that must be on the bill of sale

The bill of sale needs to identify the vehicle clearly and document the transaction. Include the vehicle identification number (VIN), the year, make, model, and color. Write down the odometer reading on the day of sale — Alabama law requires this to prevent fraud. Add the sale price in dollars, the date of the sale, and the names and addresses of both the buyer and the seller.

Both parties must sign and date the document. Some people add a line stating that the vehicle is sold "as-is" with no warranty, which protects the seller from later claims about the car's condition. You can also note whether any liens (loans) are still attached to the vehicle, though the seller is responsible for paying off any loan before the title can transfer cleanly.

If the vehicle has a branded title — meaning it was previously declared a total loss, salvage, or flood vehicle — that information should appear on the title document itself, not just the bill of sale. The buyer will see it when they register the vehicle.

How to get or create a bill of sale form

The Alabama Department of Revenue does not publish a single official form online that you can read directly. However, you can contact the Motor Vehicle Division at 334-242-9000 to request a form by mail, or visit a local county probate office, which handles vehicle registration and can provide a template.

Many online legal document services and automotive websites offer free Alabama bill of sale templates. These templates follow state requirements and include all necessary fields. You can also write one from scratch on plain paper as long as it contains the required information and is signed by both parties.

Whichever route you choose, print or write the bill of sale in duplicate so that both the buyer and seller have a signed original. Do not rely on a photocopy for your records — each party should have a document that both have signed.

Steps to complete the bill of sale

Start by filling in the vehicle details: VIN, year, make, model, and color. Check the current title document or the vehicle itself to make sure the VIN is correct — errors here can delay registration later. Write the odometer reading as it appears on the instrument cluster on the day of sale.

Enter the sale price in words and numbers (for example, "One Thousand Five Hundred Dollars ($1,500.00"). Add the date of sale and the full names and addresses of both buyer and seller. If either party is a business rather than an individual, use the business name and the address where the business is located.

Both the buyer and seller must sign and print their names on the document. Some people have the signatures notarized, which adds an extra layer of proof that both parties agreed, though Alabama does not require notarization for a bill of sale to be valid. If you choose to have it notarized, take the unsigned document to a notary public before signing it.

What happens after you sign the bill of sale

The bill of sale is the first step, not the final one. The buyer must take the signed bill of sale, the title document (signed by the seller), and proof of insurance to the county probate office to register the vehicle in their name. The probate office will issue a new title and registration in the buyer's name.

The seller should keep a copy of the signed bill of sale for their records. If the vehicle had a loan, the seller is responsible for paying it off and getting the lender to release the lien from the title before handing it to the buyer. If the lien is not released, the buyer cannot register the vehicle.

The buyer should not drive the vehicle on public roads until they have registered it and received new plates or a temporary registration permit from the probate office. Driving an unregistered vehicle can result in a traffic citation.

Common mistakes to avoid

Do not leave the sale price blank or write "cash" without a dollar amount. The probate office and future buyers need to know the actual price paid. Leaving it blank can raise questions about whether the sale was legitimate.

Do not forget the odometer reading. Alabama requires it, and it protects both parties from odometer fraud claims later. If the odometer is broken or reads more than 99,999 miles, note that on the bill of sale.

Do not assume the bill of sale transfers the title. It documents the sale, but the title document itself must be signed by the seller and filed with the probate office by the buyer. Without that step, the buyer is not the legal owner in the state's records.

Do not use a bill of sale to hide a sale from a lender or to avoid taxes. If the vehicle has a loan, the lender must release the lien before the title can transfer. Attempting to circumvent that process can result in legal action against both buyer and seller.

Frequently Asked Questions

Can I write a bill of sale by hand, or does it have to be typed?

Handwritten bills of sale are legally valid in Alabama as long as they include all required information and are signed by both parties. Typed or printed forms are clearer and easier to read, but handwriting is acceptable. Make sure the handwriting is legible and both parties sign in ink.

Do I need to have the bill of sale notarized?

Notarization is not required by Alabama law, but it adds proof that both parties signed willingly and that their identities were verified. If you want extra protection or expect the sale to be disputed later, notarization is worth the small fee. Many banks and title companies offer notary services.

What if the seller still owes money on the vehicle?

The seller must pay off the loan and have the lender release the lien before the buyer can register the vehicle. The bill of sale can note that a lien exists, but the title will not transfer cleanly until the lien is removed. The buyer should not hand over payment until the lien release is in hand.

Can I sell a vehicle without a bill of sale?

Technically, the buyer can register the vehicle with just the signed title document, but a bill of sale protects both parties by documenting the price, date, and condition of the sale. Without it, disputes over the transaction are harder to resolve. It is inexpensive and quick to create, so it is worth doing.

What should I do if I lost the bill of sale after the sale?

If you are the seller, contact the buyer and ask for a copy. If you are the buyer, check your registration paperwork — some probate offices keep a copy on file. If neither exists, you can create a new one and have both parties sign it, though it will be dated after the original sale. For future reference, keep your copy in a safe place with your vehicle records.