Learn more about what’s included in a bill of sale, whether you need one to sell your car, and how to write one.
What Is a Bill of Sale?
A bill of sale is a document that provides proof of a sale and the transfer of property from one party to another. It can be used when selling a variety of items but is most commonly used for vehicle sale transactions. The bill of sale will identify the parties involved in the transaction, the property being transferred, and the date and price of the transaction. As a result, both parties will have proof of the sale. It can be important to show a release of liability on the part of the seller. For example, say a car was sold from one private party to another. However, the buyer did not properly register the vehicle and used the car to commit a crime. With a bill of sale, the seller could prove they were no longer in possession of the vehicle.
Who Needs a Bill of Sale for a Car?
It’s wise to create a bill of sale for all private vehicle sale transactions so there is a record showing both parties agreed on the terms. However, in some states, it’s required. Several states also require you to use a specific form and/or have the bill of sale notarized. Here’s a detailed look at the bill of sale requirements by state.
Date the vehicle was soldSelling price of the vehicleVehicle’s make, year, model, odometer reading, and vehicle identification number (VIN)Name, address, and signature of the buyerName, address, and signature of the seller
