What a New Jersey bill of sale is and why you need one
A bill of sale is a written record that you sold a car to someone else, or that someone sold one to you. In New Jersey, it documents the date of the sale, the vehicle details, the price paid, and the names and signatures of both the buyer and seller. The state does not require a bill of sale by law, but the Motor Vehicle Commission (MVC) strongly recommends one because it protects both parties if a dispute arises later—about the condition of the car, the price, or who owned it on a particular date.
Without a bill of sale, you have no written proof of the transaction. If the buyer later claims the car was sold with a hidden defect, or if the seller disputes that they actually transferred ownership, you are left with only your word. A bill of sale also protects you from liability if the buyer gets into an accident or racks up parking tickets after the sale—because you have proof you no longer owned the vehicle on that date.
Key Takeaways
- New Jersey does not legally require a bill of sale, but the MVC recommends one because it protects both buyer and seller if a dispute arises later.
- A bill of sale must include the vehicle identification number (VIN), the sale date, the sale price, and the printed names and signatures of both parties.
- You can use the MVC's official form or write your own bill of sale as long as it contains all required information and both parties sign it.
- Keep a copy for your records and give the original to the other party; the bill of sale is separate from the title transfer and registration.
What information must go on a New Jersey bill of sale
The bill of sale must identify the vehicle clearly so there is no confusion about which car was sold. Include the year, make, model, color, and most importantly the vehicle identification number (VIN)—a 17-character code stamped on the dashboard and listed on the title. You also need the license plate number if the car is currently registered.
Both the buyer and seller must print their full legal names and sign the document. Include their addresses so there is a record of who the parties were. Write the date of the sale and the sale price in words and numbers (for example, "Five Hundred Dollars ($500.00"). If the car is being sold as-is with no warranty, you can add that language, though it is not required. Some sellers also note the odometer reading on the sale date to create a record of the car's mileage at the time of transfer.
Using the MVC form or writing your own
The New Jersey Motor Vehicle Commission does not publish an official bill of sale form, so you have two options: use a template from a reliable source or write one yourself. Many online legal document services and the New Jersey Bar Association offer templates that meet state standards. If you write your own, make sure it includes all the information listed above and is clear enough that a court could read it if needed.
Handwritten bills of sale are legal in New Jersey as long as both parties sign and date it. Typed versions are also acceptable. The document does not need to be notarized, though some sellers choose to have it notarized for extra protection. If you do have it notarized, the notary will verify the identity of both parties and witness the signatures, which creates a stronger record if the bill of sale is ever challenged.
How to complete and sign the bill of sale
Fill in all the vehicle information while you and the buyer are together, so both of you can verify the details are correct. Write or type the sale price and date. Both the buyer and seller must sign and print their names on the document. Do not leave blanks—if you do not know a piece of information, write "unknown" rather than leaving it blank, because a blank space could be filled in later by someone else.
Make two copies: one for the seller and one for the buyer. Each party should keep their copy in a safe place. The bill of sale does not go to the MVC—it stays with the buyer and seller as proof of the transaction. If you are the seller, keep your copy until the buyer completes the title transfer and registration, which usually takes a few weeks. This protects you if the buyer later claims they never received the car or disputes the sale price.
The difference between a bill of sale and a title transfer
A bill of sale and a title transfer are two separate documents that serve different purposes. The bill of sale is a record between you and the other party that the sale happened. The title is the official state document that proves who owns the car, and transferring the title is what legally changes ownership in New Jersey's records.
After you sign a bill of sale, the buyer must take it to the MVC along with the signed title, proof of insurance, and other documents to register the car in their name. The MVC will not process the title transfer without the title itself—the bill of sale is supporting documentation that shows the buyer has the seller's permission to transfer it. As the seller, you sign the back of the title to release your ownership; the buyer then submits both documents to complete the transfer. The bill of sale protects you during the time between when you sign it and when the buyer finishes the title transfer.
What to do if you are buying a used car without a bill of sale
If you are buying a car and the seller does not offer a bill of sale, you should ask for one before you hand over any money. Explain that it protects both of you. If the seller refuses or claims it is not necessary, that is a warning sign. A legitimate seller has no reason to avoid a straightforward written record of the sale.
If you have already bought the car without a bill of sale, you can still create one after the fact. Ask the seller to sign a bill of sale dated with the original sale date, and include the price you paid. Both parties must agree on the date and price for this to be valid. If the seller refuses to sign a bill of sale after the sale, you may have difficulty proving you own the car if a dispute arises, so document everything else you have—text messages, emails, bank records showing the payment, or witness statements from people who were present at the sale.
Frequently Asked Questions
Does New Jersey require a bill of sale when I sell my car?
No, New Jersey does not legally require a bill of sale. However, the Motor Vehicle Commission recommends one because it creates a written record that protects both the buyer and seller if a dispute arises about the sale price, the condition of the car, or the date of ownership transfer.
Can I use a bill of sale form from another state?
Yes, as long as it includes all the required information: the VIN, sale date, sale price, and signatures of both parties. New Jersey does not have a specific form requirement, so any clear, signed document that records the sale is acceptable. However, using a New Jersey template ensures you are not missing any information that New Jersey courts or the MVC might expect.
What if the buyer and I disagree on the sale price after we sign the bill of sale?
The bill of sale is a binding record of what you both agreed to on the date you signed it. If a dispute arises later, the bill of sale is evidence of the agreed price. If you did not sign a bill of sale, you have no written proof, and a court would have to decide based on other evidence like bank records or witness testimony.
Do I need to get the bill of sale notarized?
No, notarization is not required in New Jersey. A bill of sale is valid with just the signatures of both parties. However, having it notarized adds an extra layer of protection because the notary verifies the identity of both parties and witnesses the signatures, which makes it harder to challenge later.
Should I keep the bill of sale after I sell my car?
Yes, keep a copy for at least several weeks after the sale, until the buyer completes the title transfer and registration with the MVC. This protects you if the buyer later claims they never received the car or disputes the terms of the sale. After the title transfer is complete, you can keep it for your records or discard it.