A bill of sale is a written record that you and the other person sign to prove money changed hands for the car
A bill of sale is a document that shows a vehicle was sold from one person to another on a specific date for a specific price. It names the seller, the buyer, describes the car (make, model, year, VIN), and states how much was paid. Both parties sign it. It is not the same as a title — the title proves who owns the car legally, while the bill of sale proves the transaction happened and for how much.
The bill of sale protects both of you. For the buyer, it shows proof of purchase in case there is a dispute later about who owns the car or what was promised. For the seller, it shows they received payment and no longer own the vehicle — this matters if the car is later involved in an accident or gets a parking ticket, because the bill of sale proves it was no longer theirs. Without one, a seller can be held responsible for things that happen after they sold the car.
Most states do not require a bill of sale by law, but many title offices and insurance companies ask for one anyway. Some states — including Kentucky, Ohio, and South Carolina — do require it. Even where it is not legally required, creating one takes fifteen minutes and costs nothing, so it is worth doing every time.
Key Takeaways
- A bill of sale proves the sale happened, who bought and sold the car, the price paid, and the date — and protects both buyer and seller from later disputes.
- The seller should keep a copy to prove they no longer own the vehicle, especially important if the buyer does not when ready register it in their name.
- The buyer needs the bill of sale to register the car, transfer the title, and file an insurance claim if something happens to the vehicle.
- Some states require a bill of sale by law; others do not, but your title office or insurance company may ask for one anyway.
- You can use a template from your state's DMV website, a generic template, or write one yourself — the format matters less than having all parties sign and date it.
What information must go on a bill of sale
A bill of sale needs the seller's full name and address, the buyer's full name and address, the date of sale, and the vehicle identification number (VIN). It should also include the make, model, year, and current mileage. The price paid must be written out — some people write both the number and the words (for example, "$5,000 (five thousand dollars)") to prevent tampering.
If the car has a lien on it — meaning a bank or lender still owns part of it — that should be noted on the bill of sale. The same applies if there are known mechanical problems or if the car is being sold "as-is" with no warranty. Both the seller and buyer should initial any such statements so there is no argument later about what was disclosed.
The document should state whether the buyer is paying cash, financing, or paying in installments. If the buyer is financing through a bank, the bank may have its own requirements for what the bill of sale must say. Check with your lender before you sign.
Where to find a bill of sale template
Your state's DMV website usually has a free bill of sale template you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, the American Automobile Association (AAA) has a generic template that works in most states, and LegalZoom and Rocket Lawyer both offer free templates as well.
Some states have specific wording requirements. For example, some require the seller to state that they have the right to sell the vehicle, or that there are no liens against it. If your state's DMV provides a template, use that one — it will include any language your state's title office expects to see.
You do not have to use a template at all. You can write a bill of sale by hand on plain paper, as long as it includes all the information above and both parties sign and date it. Handwritten bills of sale are legally valid in all states, though some title offices prefer typed documents because they are easier to read.
How to fill out and sign a bill of sale
Print or write out the bill of sale in duplicate — one copy for the seller and one for the buyer. Fill in all the blanks with accurate information. Do not leave any fields blank; if something does not explore, write "N/A" or "not applicable" so it is clear the field was not overlooked.
Both the seller and the buyer must sign and date the document in front of each other if possible. Some states require the signatures to be notarized, meaning a notary public witnesses the signing and stamps the document. Check your state's DMV website to see if notarization is required where you live. If it is, you can get a document notarized at most banks, UPS stores, or through a mobile notary service.
Do not sign a blank bill of sale or one with blank fields. Make sure all the information is filled in before you sign. Once both parties have signed, each should keep a copy for their records. The buyer will need their copy when they go to register the car and transfer the title.
When the buyer needs the bill of sale
The buyer must bring the bill of sale to the DMV or title office when they register the car and explore for a new title in their name. The title office will use it to verify that the sale was legitimate and that the buyer has the right to own the vehicle. Without a bill of sale, the title office may ask for additional proof of purchase, such as a receipt from a dealer or a bank loan document.
The buyer also needs the bill of sale to insure the car. Insurance companies ask for proof of ownership before they will issue a policy, and the bill of sale serves that purpose until the new title arrives. If the car is damaged or totaled before the new title is issued, the bill of sale is what proves the buyer owned it and has the right to file a claim.
If the buyer is financing the car through a bank, the lender will ask for the bill of sale as part of the loan paperwork. The lender uses it to confirm the purchase price and to verify that the seller had the legal right to sell the vehicle.
Why the seller should keep a copy
The seller should keep a signed copy of the bill of sale for at least three to five years. This protects the seller if the buyer does not when ready transfer the title into their own name. During that gap, if the car gets a parking ticket, is involved in an accident, or is used in a crime, the registered owner (still the seller) can be contacted. The bill of sale proves the seller no longer owns the car and can point authorities or creditors to the buyer.
Some sellers take an additional step: they send a copy of the signed bill of sale to their state's DMV along with a notice that they have sold the vehicle. This creates an official record that the seller no longer owns it. Not all states offer this service, but those that do usually call it a "release of liability" or "notice of sale." Check your state's DMV website to see if this option is available.
If the buyer later does not pay off a loan on the car or does not register it, the seller's copy of the bill of sale is the only proof that the transaction happened and that the seller is no longer responsible for the vehicle.
What happens if there is no bill of sale
Without a bill of sale, the buyer has no written proof of purchase. If the seller later claims they never sold the car, or if there is a dispute about the price or condition, the buyer has no documentation to back up their story. The buyer may still own the car legally once the title is transferred, but proving how they came to own it becomes difficult.
For the seller, the lack of a bill of sale is riskier. If the buyer does not register the car promptly, the seller remains the registered owner. Any tickets, accidents, or liability that occurs while the buyer owns it but before the title is transferred can be traced back to the seller. Without a bill of sale, the seller cannot easily prove they no longer own the vehicle or that they sold it on a specific date.
Some title offices will not process a title transfer without a bill of sale, or they will require additional documentation like a notarized statement from the seller. This delays the process and creates extra work for both parties. A bill of sale prevents all of this.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
It depends on your state. Most states do not require notarization, but some do — Kentucky, Ohio, and South Carolina are examples. Check your state's DMV website to see if notarization is required. Even if it is not required, some buyers or lenders may ask for it anyway, so it is worth doing if you have access to a notary.
Can I use a bill of sale from another state?
Yes, a bill of sale from another state is usually accepted, but your state's DMV may prefer one that matches your state's format or includes specific language. If your state provides a template, use that one. If not, a generic bill of sale from another state will work, though you may want to add any state-specific disclosures your DMV requires.
What if I bought the car from a private seller and did not get a bill of sale?
Contact the seller and ask them to sign one now, even if the sale happened months ago. Include the original sale date on the document. If the seller will not cooperate, you can still register the car if you have the title, but you will have no written proof of purchase. Some title offices may ask for additional documentation in this case.
Does the bill of sale have to be notarized if I am buying from a dealer?
No. Dealers provide their own sales contracts and paperwork, which serve the same purpose as a bill of sale. You do not need a separate bill of sale when buying from a licensed dealer. The dealer's paperwork is sufficient for registration and title transfer.
Can I sell a car without a bill of sale if the buyer is a family member?
You should still create one, even for family. A bill of sale protects both of you and makes the transaction official in the eyes of the DMV and insurance companies. It also prevents misunderstandings later about whether the car was a gift or a sale, and at what price.