What an Arkansas bill of sale is and why you need one

An Arkansas bill of sale is a written record that you and the buyer (or seller) sign to document the transfer of a vehicle. It shows who owned the vehicle, who owns it now, the sale price, the vehicle's details, and the date of the transaction. Arkansas does not require a bill of sale by law, but the state's Department of Finance and Administration recommends having one, and most lenders and title companies will ask for it when you register the vehicle or transfer the title.

The bill of sale protects both parties. For the seller, it proves you received payment and no longer own the vehicle — important if the buyer later gets a ticket or is involved in an accident. For the buyer, it documents what you paid and the condition of the vehicle at purchase, which matters if a dispute arises later.

Arkansas does not have an official state bill of sale form, which means you can use a template from a private source, write your own, or use one provided by a title company or dealership. The key is that it must be signed by both parties and include the required information.

Key Takeaways

  • Arkansas does not legally require a bill of sale, but the Department of Finance and Administration recommends one, and most title companies will request it.
  • The bill of sale must include the vehicle identification number (VIN), make, model, year, sale price, odometer reading, and the signatures of both buyer and seller.
  • You can use a template from a title company, a private online source, or write one yourself — Arkansas has no official state form.
  • Both the buyer and seller should keep a signed copy for their records before the buyer takes possession of the vehicle.

What information must be on the bill of sale

The bill of sale should include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code found on the dashboard, driver's side door jamb, or title document. Include the vehicle's make, model, year, and color. Add the odometer reading at the time of sale — this is important because it documents the mileage and helps prevent odometer fraud.

Write the sale price in both numbers and words (for example, "$5,500" and "Five thousand five hundred dollars"). Include the date of the sale, the full names and addresses of both the buyer and seller, and the signature lines for both parties. Some people also add a line for the condition of the vehicle (for example, "sold as-is" or "with warranty") to prevent later disputes.

If the vehicle has a lien (meaning a lender still owns it), note the lender's name and the loan account number. This tells the buyer that the title will not be clear until the loan is paid off.

Where to find a bill of sale template

Arkansas title companies and the Arkansas Department of Finance and Administration website may have templates you can read and print. Many online legal document sites offer free or low-cost bill of sale templates specific to Arkansas. If you use an online template, make sure it is designed for Arkansas and includes all the fields mentioned above.

If you are buying or selling through a dealership, the dealership will usually provide the bill of sale as part of the paperwork. If you are doing a private sale, you can ask the other party if they have a template, or you can provide one yourself. Either way, both parties must agree on the wording before signing.

How to fill out and sign the bill of sale

Print the template or form and fill in all the blanks with accurate information. Use black or blue ink and write clearly — the document may be scanned or photocopied, and illegible entries can cause problems later. Do not leave blanks; if a field does not explore (for example, if there is no lien), write "N/A" or "none."

Both the buyer and the seller must sign the bill of sale in front of each other. Some people have the signatures notarized, which is not required in Arkansas but adds a layer of proof that both parties signed willingly. If you choose to notarize, take the signed (but not yet notarized) bill of sale to a notary public, who will verify your identities and witness your signatures.

Make two copies — one for the buyer and one for the seller. Each party should keep their copy in a safe place. The buyer will need the bill of sale when registering the vehicle with the Arkansas Department of Finance and Administration.

What happens after you sign the bill of sale

The buyer must take the bill of sale, the title, and proof of insurance to the Arkansas Department of Finance and Administration to register the vehicle and transfer the title into their name. This step is separate from the bill of sale but depends on it. The buyer typically has 30 days from the date of purchase to register the vehicle, though it is wise to do it sooner.

The seller should keep their copy of the signed bill of sale as proof that they no longer own the vehicle. If the buyer later gets a ticket or is involved in an accident, the seller can show the bill of sale to prove the vehicle was sold on a specific date. The seller may also want to notify their insurance company that the vehicle has been sold.

If the vehicle has a lien, the lender must release the lien before the title can be transferred to the buyer. This usually happens when the loan is paid off, and the lender sends a release document to the Arkansas Department of Finance and Administration. The bill of sale documents the sale, but the title transfer cannot be completed until the lien is cleared.

Common mistakes to avoid when completing a bill of sale

Do not leave the VIN blank or write it incorrectly — the VIN is the most important piece of information on the bill of sale, and errors can delay registration. Do not forget the odometer reading, as this is required by federal law and helps prevent fraud. Do not write the price in a way that is unclear (for example, avoid abbreviations like "K" for thousand).

Do not sign the bill of sale before both parties have reviewed it and agreed on all the terms. Do not give the buyer the vehicle before both parties have signed — the bill of sale is your proof of transfer. Do not assume that signing the bill of sale transfers the title; the title transfer is a separate process that the buyer must complete with the state.

Do not use white-out or cross out information and initial the change — if you make a mistake, start over with a new copy. Alterations can raise questions during registration and may delay the process.

When you might need a notarized bill of sale

Arkansas does not require a notarized bill of sale for a private vehicle sale. However, some title companies, lenders, or insurance companies may request one. A notarized bill of sale adds proof that both parties signed the document in front of a neutral third party and that their identities were verified.

If you are selling a vehicle with a lien, the lender may require a notarized bill of sale. If you are buying a vehicle from out of state or if there is any question about the authenticity of the signatures, a notarized bill of sale can help resolve the issue. The cost of notarization is usually between $5 and $15 per signature, and you can find notaries at banks, title companies, or online services.

Frequently Asked Questions

Do I have to use a specific bill of sale form in Arkansas?

No. Arkansas does not have an official state bill of sale form. You can use a template from a title company, a private online source, or write your own. The important thing is that it includes the VIN, sale price, odometer reading, and signatures of both parties.

What if I lose my copy of the bill of sale after I sell the vehicle?

Contact the buyer and ask them to provide a copy. If they cannot, you can request a copy of the title transfer from the Arkansas Department of Finance and Administration, which will show the sale date and the buyer's name. Keep this record in case questions arise later.

Can I sell a vehicle without a bill of sale in Arkansas?

Technically yes, because Arkansas does not legally require one. However, it is not recommended. Without a bill of sale, you have no proof that you sold the vehicle or when you sold it, which can cause problems if the buyer is later involved in an accident or gets a ticket.

Do both parties have to sign the bill of sale on the same day?

It is best practice for both parties to sign on the same day, in front of each other. This prevents disputes about when the sale occurred. If the buyer signs first and the seller signs later, date both signatures clearly so the timeline is clear.

What if the buyer does not register the vehicle after I sell it?

The buyer is responsible for registering the vehicle within 30 days. If they do not, the title remains in your name, and you could be held liable for tickets or accidents. Keep your copy of the signed bill of sale and consider sending the buyer a reminder. If the buyer never registers, you may want to contact the Arkansas Department of Finance and Administration to report the sale.