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BILL-SALE
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Bill of Sale

Not Attorney-ReviewedAuthor: Arjun AnnamalaiMethodology: Statutory Verification

A legal document that records the transfer of ownership of property from a seller to a buyer.

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What Is a Bill of Sale?

A bill of sale is a legal document that records the transfer of ownership of an item from one party (the seller) to another (the buyer). It serves as written proof that a sale occurred and documents the agreed-upon price, the condition of the item, and the identities of the parties involved. Bills of sale are most commonly used for motor vehicles, boats, motorcycles, trailers, firearms, and high-value personal property. For motor vehicles, most states require a bill of sale to transfer the title and register the vehicle in the buyer's name. Unlike a contract, a bill of sale is generally executed after the transaction is complete — it is a record of what already happened, not a promise of future performance.

Why You Need a Bill of Sale

A bill of sale protects both the buyer and seller in a private transaction. For the seller, it provides proof that ownership was transferred and limits future liability for the property. For the buyer, it provides evidence of legal ownership and the purchase price paid. For motor vehicles, a bill of sale is required in most states to transfer the title at the DMV and register the vehicle. Without it, the buyer may be unable to legally register the vehicle. For boats and watercraft, states similarly require documentation of the sale for registration. Even for personal property not requiring title transfer, a bill of sale protects against disputes about what was sold, the price, and the condition of the item at time of sale.

Key Components

1

Parties

Full legal names, addresses, and contact information for both the buyer and seller.

2

Item Description

Detailed description of the item being sold — for vehicles: year, make, model, VIN, mileage, and color.

3

Purchase Price

The agreed-upon sale price and method of payment (cash, check, financing).

4

Date of Sale

The exact date the transaction was completed and ownership transferred.

5

As-Is Disclosure

Whether the item is sold "as-is" with no warranties, or with specific guarantees.

6

Odometer Disclosure

For vehicles, federal law requires the seller to certify the vehicle's mileage at time of sale.

7

Signatures

Signatures of both buyer and seller, and notarization if required by the state.

8

Liens

Disclosure and release of any existing liens or encumbrances on the property.

Questions & Answers

Frequently Asked Questions

Do I need a bill of sale for a private car sale?

In most states, yes. A bill of sale is required to transfer the vehicle title and register the car at the DMV. Even in states where it's not legally required, it's strongly recommended to protect both parties.

Does a bill of sale need to be notarized?

Notarization requirements vary by state and by the type of property. Many states require notarization for vehicle bills of sale. Others require witnesses. Check your state's specific DMV requirements.

What is the difference between a bill of sale and a title?

A title is the official government document proving ownership. A bill of sale is a private record of the transaction between buyer and seller. Both are typically needed to transfer vehicle ownership — the bill of sale to show the sale occurred, the title to transfer legal ownership.

Can a bill of sale be handwritten?

Yes, a handwritten bill of sale is generally legally valid as long as it contains all required information and signatures. However, using a typed template reduces errors and is more professional.

What happens if I sell a car without a bill of sale?

Without a bill of sale, you may remain on record as the vehicle owner and be liable for tickets, accidents, or crimes committed with the vehicle after the sale. The buyer may also have trouble registering the vehicle.

Bill of Sale by State

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