Bill of Sale — Frequently Asked Questions
Everything you need to know about bills of sale for vehicle transactions — what they are, when you need one, what to include, and how the rules vary by state.
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What is a bill of sale?
What is a bill of sale?
A bill of sale is a legal document that records a private sale transaction. It identifies the buyer and seller, describes the vehicle (year, make, model, VIN), states the purchase price, and includes the date of the sale. It is not the same as a title — it documents the transaction between the two parties, not legal ownership.
Is a bill of sale the same as a title?
No. A bill of sale is a private record of the transaction between buyer and seller. A title is the government-issued document proving legal ownership of the vehicle. After a private sale you need both: a signed bill of sale for your records and a properly transferred title to prove the new owner has legal ownership.
Is a handwritten bill of sale legal?
Yes, in all 50 states. A handwritten bill of sale is legally valid as long as it includes the buyer and seller full names and addresses, a complete vehicle description (year, make, model), the 17-character VIN, the sale price, the date of sale, and signatures from both parties. It does not need to be typed or printed from a form.
Does a bill of sale need to be notarized?
Only in 8 states: Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, Ohio, and West Virginia. All other states accept a bill of sale without notarization. Even in states where notarization is required, both parties just need to sign in the presence of a notary public — the document itself remains the same.
Is a bill of sale a legal contract?
Yes. A signed bill of sale is a binding contract evidencing that the buyer and seller agreed to the terms of the sale. It can be used as evidence in a dispute over sale price, sale date, or condition of the vehicle at the time of transfer. Courts routinely accept bills of sale as proof of a completed private-party transaction.
How long should I keep a bill of sale?
Keep it indefinitely, or at minimum for 5 to 7 years. Sellers should retain a copy in case the buyer fails to transfer the title and parking tickets or violations are later attributed to the vehicle. Buyers should keep it for tax records, insurance purposes, and proof of the price paid if the vehicle is later resold.
Can a bill of sale be used as proof of ownership?
A bill of sale alone is not proof of ownership — the title is. However, a bill of sale can serve as temporary documentation while a title transfer is being processed. Some states will accept a bill of sale as evidence during a bonded title process when the original title is lost.
What is an as-is bill of sale?
An as-is bill of sale includes a clause stating the vehicle is sold in its current condition, with no warranty expressed or implied by the seller. This is the standard for private vehicle sales in all 50 states and protects the seller from future claims about mechanical defects discovered after the sale is complete.
Do I need one?
Do I need a bill of sale to sell my car?
Not legally required in most states, but strongly recommended. A bill of sale protects you from liability after the sale by documenting the exact date you transferred the vehicle. If the buyer gets a parking ticket the next day or causes an accident before transferring the title, your bill of sale establishes when you stopped being the responsible party. Washington and Montana effectively require one to calculate use tax.
Do I need a bill of sale to register a car?
It depends on the state. Washington State requires a bill of sale showing the purchase price to calculate the use tax at registration. Louisiana and West Virginia also require a bill of sale to complete a title transfer. Most other states do not require one at registration, but may ask for it if the purchase price is needed for tax assessment.
Can I sell a car without a bill of sale?
Technically yes in most states, but it is risky. Without a bill of sale you have no proof of the sale date, sale price, or that you transferred the vehicle at all. If the buyer fails to register the car in their name, you could receive parking tickets, toll violations, or even be named in an accident lawsuit — and have no documentation to prove you no longer own the vehicle.
Do I need a bill of sale for a gift?
Yes, especially for tax purposes. A gift bill of sale documents a $0 sale price to establish that the transfer was a gift and not a taxable sale. Many states offer a sales tax exemption for gift transfers between immediate family members, but the DMV typically requires a signed bill of sale listing the $0 purchase price to qualify for that exemption.
Do I need a bill of sale when selling to a dealer?
Dealers typically generate their own paperwork, including a purchase agreement that functions like a bill of sale. However, you can and should request a copy of any document you sign. If a dealer does not provide written documentation of the transaction, ask for it in writing before handing over the keys.
Do I need a bill of sale for a motorcycle?
Yes, just like a car. A motorcycle bill of sale should include the VIN, year, make, model, sale price, odometer reading, buyer and seller information, and both signatures. Some states require odometer disclosure only for vehicles under a certain GVWR, but best practice is to include it for any motorized vehicle.
Do I need a bill of sale for a boat?
Yes. Most states require a bill of sale to transfer a boat title, and it is especially important for boats that are registered with the U.S. Coast Guard. A boat bill of sale should include the hull identification number (HIN), make, model, year, length, and engine details in addition to standard buyer/seller information and sale price.
Do I need a bill of sale for a trailer?
Yes if the trailer has a title. Most states title trailers over a certain weight (typically 1,500–2,000 lbs). A bill of sale documents the transaction and is required by the DMV to process the title transfer. Even for untitled trailers, a bill of sale is recommended to document the sale in case of later disputes.
Do I need a bill of sale if I am buying from a private party out of state?
Yes. An out-of-state purchase almost always requires a bill of sale at registration. Your home state DMV will need to verify the purchase price to assess any use tax. Keep the signed original — some states require it to be the original document, not a photocopy.
Do I need a bill of sale for a vehicle with a lien?
If there is an active lien on the vehicle, the seller must pay off the lien before transferring clear title. The bill of sale should note the sale price and that the seller represents the vehicle is free of liens at time of transfer. Never complete a vehicle purchase without first confirming the lien has been satisfied and the lienholder has released the title.
What to include
What information goes on a bill of sale?
A complete vehicle bill of sale must include: (1) buyer full legal name and address, (2) seller full legal name and address, (3) vehicle year, make, and model, (4) full 17-character VIN, (5) current odometer reading, (6) agreed sale price in dollars, (7) date of the sale, (8) signatures of both buyer and seller, and in 8 states, a notary acknowledgment.
Does a bill of sale need a VIN?
Yes, always. The 17-character Vehicle Identification Number is the only way to uniquely identify a specific vehicle. Without a VIN, a bill of sale could theoretically apply to any vehicle of the same year, make, and model. DMVs routinely reject title transfer applications when the bill of sale does not include or has an incorrect VIN.
Do I need odometer disclosure on a bill of sale?
Federal law (49 CFR § 580) requires odometer disclosure for vehicles under 10 years old and under 16,000 lbs GVWR. This means both buyer and seller must acknowledge the current mileage in writing. Many states incorporate this requirement directly into their title transfer form, but including it on the bill of sale creates an additional record of the stated mileage at time of sale.
Should I include the sale price on a bill of sale?
Yes. The sale price is one of the most legally important fields. It determines the sales tax or use tax owed in states that collect it, documents the consideration exchanged to make the contract binding, and provides evidence of the agreed price if there is later a dispute. Never leave the sale price blank or write "private" — state DMVs will often reject the document.
Do both buyer and seller need to sign a bill of sale?
Yes. A bill of sale should be signed by both the buyer and the seller to be legally binding. Some states only technically require the seller's signature, but obtaining both makes the document stronger evidence that both parties agreed to the terms. Both parties should also keep a signed copy.
Should a bill of sale include vehicle condition?
It is best practice to include a statement that the vehicle is sold "as-is" with no warranties. For vehicles with known defects, some sellers include a brief description of known issues. This protects the seller from later claims that they concealed a defect. Never misrepresent the condition of the vehicle — that can constitute fraud.
Should I include payment method on a bill of sale?
It is helpful but not legally required. Noting whether the vehicle was paid in cash, certified check, or other means provides additional documentation of the transaction. For large cash transactions, some sellers include a statement that full payment was received in cash on the date of sale.
Can a bill of sale be amended after signing?
Not recommended. Once both parties have signed, the document should be treated as final. If an error is discovered immediately, the cleanest solution is to void the original and create a new bill of sale with the corrected information. Never alter a signed document without both parties initialing every change — altered documents can be challenged as fraudulent.
State-specific rules
What states require a bill of sale?
Washington State and Montana effectively require a bill of sale to calculate use tax at registration. Louisiana requires it for title transfer. West Virginia requires it to complete registration. All other states accept but do not legally mandate a bill of sale for private vehicle sales — though it is strongly recommended everywhere.
Does California require a bill of sale?
California does not require a bill of sale, but sellers must submit a Notice of Transfer and Release of Liability (REG 138) to the California DMV within 5 days of sale. This notifies the DMV of the transfer date and releases the seller from liability for the vehicle. Failing to file REG 138 can result in the seller being held responsible for tickets and tolls incurred by the new owner.
Does Texas require a bill of sale?
Texas does not mandate a bill of sale, but it does require Form 130-U (Application for Texas Title and/or Registration) to complete a title transfer. A bill of sale is strongly recommended for both parties to document the transaction details. Texas also requires odometer disclosure for vehicles under 10 years old.
Does Florida require a bill of sale?
Florida does not require a bill of sale by law, but sellers are encouraged to use one. The Florida HSMV 82050 form (Notice of Sale) must be submitted to the DHSMV within 30 days of the sale to release the seller from liability. For vehicles purchased without a title, a bill of sale is particularly important as supporting documentation.
Does New York require a bill of sale?
New York does not require a bill of sale for private vehicle sales. However, if the vehicle is purchased without a valid title, a bill of sale may be used as supporting documentation for a bonded title application. New York DMV Form MV-912 (Bill of Sale) is available from the DMV and is accepted for this purpose.
Which states require notarized bills of sale?
Eight states require a notarized bill of sale for vehicle title transfer: Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, Ohio, and West Virginia. In these states, both parties must sign in the presence of a commissioned notary public. The notary seal and signature do not change the content of the document — they simply authenticate the signatures.
Does Illinois require a bill of sale?
Illinois does not require a bill of sale, but the Illinois Secretary of State recommends one. The state requires a Vehicle Inspection Report and a completed title for private sales. Sellers should also notify the Illinois SOS of the sale to remove their name from the vehicle record.
Does Pennsylvania require a bill of sale?
Pennsylvania requires MV-4ST (Vehicle Sales and Use Tax Return/Application for Registration) to title a purchased vehicle. A separate bill of sale is not legally required but is strongly recommended. PennDOT requires the purchase price to be disclosed on MV-4ST to calculate sales tax, so the price from your bill of sale should match exactly.
Can I use a bill of sale from another state?
Yes, in most cases. A bill of sale that meets your home state's requirements is valid regardless of where it was drafted. If you purchased a vehicle in another state, bring the original signed bill of sale to your home state DMV along with the out-of-state title. Some states may require you to complete a state-specific form in addition to the out-of-state bill of sale.
Does Ohio require a bill of sale?
Ohio requires a notarized bill of sale for title transfer on private vehicle sales. Both buyer and seller must sign in front of a notary. Ohio BMV Form BMV 3724 is the official odometer disclosure statement and should accompany the bill of sale for vehicles under 10 years old. The sale price must match the amount on the title application to avoid a use tax discrepancy.
Buying a vehicle
What should I check before signing a bill of sale?
Before signing, verify: (1) the VIN on the bill of sale matches the VIN on the title and on the vehicle's dashboard plate, (2) the seller's name on the bill of sale matches the name on the title exactly, (3) there are no open liens listed on the title, (4) the odometer reading on the bill of sale is consistent with what the vehicle shows, and (5) the seller's ID matches the name on the title.
Can I get a refund after signing a bill of sale?
Generally no. Private vehicle sales in all 50 states are typically "as-is." Once a bill of sale is signed and payment exchanged, the sale is final. The only exceptions are if the seller committed fraud by misrepresenting the vehicle's condition or title status, in which case you may have legal recourse. This is why pre-purchase inspection and VIN history checks are important before signing.
What if the seller does not have the title?
Do not complete the purchase until the seller has a clear, unencumbered title in hand. If the seller claims the title is "lost," they need to apply for a duplicate title from their state DMV before the sale can proceed. Buying a vehicle without a title is risky — you could receive a vehicle with an undisclosed lien, a salvage history, or a title that was never legally transferred to the seller.
Should I run a VIN check before signing a bill of sale?
Yes, always. A VIN history report (from services like Carfax or the NMVTIS national database) reveals accident history, odometer rollback flags, title brands (salvage, flood, rebuilt), active liens, and whether the vehicle has been reported stolen. This check typically costs $20–$40 and can prevent purchasing a vehicle with serious hidden problems.
What do I do with the bill of sale after buying a car?
Keep the original signed bill of sale with your vehicle purchase documents. You will need it when you register the vehicle at your state DMV — some states require it to assess use tax on the purchase price. Store it with the title in a safe place for the duration of your ownership. Do not discard it after registration, as you may need it if you later sell the vehicle.
Can a bill of sale be used to obtain insurance before registering?
Yes, most auto insurance companies will bind coverage on a newly purchased vehicle using the bill of sale as proof of purchase. You typically have a short grace period (7–30 days depending on the insurer) during which the vehicle can be added to your policy using the bill of sale while you complete the title transfer and registration process.
What if there is an error on the bill of sale I received?
Contact the seller immediately. Minor errors (misspelled name, wrong address) can be corrected by drawing a single line through the error, writing the correction, and having both parties initial the change. For material errors (wrong VIN, wrong sale price), the safest approach is to void the original document and create a new bill of sale with the correct information before the seller completes the title transfer.
Selling a vehicle
How do I protect myself when selling a car privately?
Use a bill of sale with an as-is clause, notify your state DMV of the sale immediately using a notice of transfer or release of liability form, keep a signed copy of the bill of sale, remove your license plates before handing over the vehicle (most states require this), and cancel your insurance only after confirming the buyer has obtained their own coverage and the vehicle is out of your name.
What happens if the buyer does not transfer the title?
If the buyer fails to transfer the title into their name, you remain the registered owner of record. This means parking tickets, toll violations, and even potential liability for accidents could still come back to you. To protect yourself, file a Notice of Release of Liability (or equivalent) with your state DMV as soon as the sale is complete. Your bill of sale documents the date of transfer.
Do I need to cancel my insurance after selling a car?
Yes. Once the vehicle is sold and you have handed over the keys and title, contact your insurance company to remove the vehicle from your policy. Keep coverage active until the sale is complete — you are still liable if the vehicle is damaged or causes damage while in your possession. Do not cancel coverage before the sale is final.
Should I remove the license plates when I sell my car?
In most states, yes. License plates are registered to the owner, not the vehicle. When you sell a vehicle, you typically keep your plates and transfer or surrender them. States like California, Illinois, and New York require plates to stay with the vehicle, but most others (Texas, Florida, Pennsylvania) require the seller to keep or return the plates. Check your state DMV rules before the sale.
How should I handle a cash sale?
For cash sales, meet in a safe public location or at a bank. Count the money before signing anything. Consider requiring a certified bank check or money order for amounts over $5,000. Your bill of sale should note "paid in full, cash" with the amount received. Do not hand over the keys or title until you have confirmed the cash is real and the full amount is in hand.
What if I am selling to an out-of-state buyer?
The bill of sale requirements are determined by the buyer's home state where they will register the vehicle. Ensure the bill of sale includes all fields required by the buyer's state. The buyer will need the signed title and bill of sale to register the vehicle in their state. Some states require the bill of sale to be notarized even if your state does not — verify what the buyer's state requires before the sale.
Can I sell a car that I still owe money on?
Yes, but the lien must be satisfied before you can transfer a clear title to the buyer. If the sale price is less than the outstanding loan balance, this is called an "underwater" or "upside-down" sale — you will need to pay the difference out of pocket to get the title released. Coordinate directly with your lender about payoff procedures. Never sell a vehicle and promise to pay off the lien later — the buyer will be stuck without a clean title.
What is a release of liability and do I need one?
A release of liability (also called a notice of transfer) is a form you file with your state DMV to notify them that you have sold the vehicle. It records the date of sale and the buyer's information, effectively removing you from responsibility for the vehicle going forward. California (REG 138), Florida (HSMV 82050), and most other states have their own specific forms. Filing it the same day you complete the sale is the safest practice.
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