What Must Be on a Bill of Sale?
A legally valid vehicle bill of sale must include 7 core fields: buyer name and address, seller name and address, vehicle description with VIN, sale price, sale date, and signatures from both parties. Federal law (49 U.S.C. § 32705) also requires odometer disclosure on vehicles under 10 model years old.
The 7 Universally Required Fields
- Buyer full legal name and mailing address
- Seller full legal name and mailing address
- Vehicle description: year, make, model, body style, and color
- Vehicle Identification Number (VIN) — 17 characters for vehicles made after 1981
- Sale price in U.S. dollars (write "$1" or "gift" for zero-dollar transfers)
- Date of sale
- Signatures of both buyer and seller
Federal Odometer Disclosure Requirement
Under 49 U.S.C. § 32705 (the Truth in Mileage Act), sellers must disclose the odometer reading on any vehicle under 10 model years old with a gross vehicle weight rating (GVWR) under 16,000 lbs. The seller must certify that the mileage is accurate, that the odometer is known to be inaccurate, or that the odometer has exceeded its maximum reading. Failure to disclose is a federal offense carrying civil liability and fines up to $10,000.
What Makes It Legally Binding
- Consideration: a stated price (even $1) proves a transaction occurred
- Identification of both parties by full legal name
- Clear description of the asset being transferred (VIN is the definitive identifier)
- Voluntary signatures from both buyer and seller
- No notarization required in most states to be enforceable
State-Specific Additions
- Notary acknowledgment: required in Louisiana, Montana, Nebraska, West Virginia, Pennsylvania (title), New York (title)
- Witness signatures: some states allow witness signatures in lieu of or alongside notarization
- Tax certification: some states require a statement that sales tax has been collected or is not applicable
- Salvage or flood disclosure: required if the vehicle has a branded title
- As-is statement: recommended language in all states to disclaim implied warranties
What a Bill of Sale Does NOT Need
- License plate number (plates stay with the seller in most states)
- Insurance policy number
- Loan or lien information (handle lien release separately)
- Smog or emissions certificate (a separate document in states that require it)
How to create a bill of sale
- Enter both parties' full legal names and current mailing addresses.
- Record the vehicle year, make, model, body style, color, and 17-character VIN.
- Write the agreed sale price in U.S. dollars — use $1 for gift transfers if applicable.
- Enter the date of sale.
- Complete the odometer disclosure section: record the current mileage and certify its accuracy.
- Both parties sign and date the document; each keeps a copy.
Frequently asked questions
What if the sale price is $1 (gift transfer)?
Writing $1 or "gift" is legally valid and establishes that consideration was exchanged. However, some states — including Texas and Georgia — may assess gift tax or use the vehicle's fair market value for tax purposes regardless of the stated price. Check your state DMV for gift transfer rules.
Does the VIN have to be included on a bill of sale?
Yes, for any motor vehicle. The VIN is the definitive legal identifier for the vehicle and is required by most state DMVs to process a title transfer. Without the VIN, the bill of sale is unlikely to be accepted as proof of purchase.
Is a handwritten bill of sale legally valid?
Yes. A handwritten bill of sale is legally enforceable as long as it includes the required fields: buyer and seller names, VIN, sale price, sale date, and signatures. There is no requirement that it be typed or use a specific form in most states.
Do both parties need to sign?
Best practice is for both buyer and seller to sign. Some states only require the seller's signature, but a dual-signature document provides stronger evidence that both parties agreed to the transaction terms.
What odometer fields are required on the bill of sale?
For vehicles under 10 model years old: the current odometer reading in miles, a certification that the mileage is accurate (or a disclosure if the odometer is broken or has rolled over), and the seller's signature. This is required under 49 U.S.C. § 32705.
Create a Complete Bill of Sale
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