A vehicle bill of sale is a legal document that details the purchase and sale of a car, motorcycle, or other type of vehicle. The seller agrees to give the buyer ownership of the car in return for a specified sum of money.

A Bill of Sale serves as a legal declaration that an automobile was sold at a specified price and on a specific date.

Table Of Contents

• What Is a Bill of Sale for a Vehicle?
• What Information Should Be on a Bill of Sale for a Vehicle?
• What Sets a Bill of Sale for a Vehicle Apart from a Title?
• Is a bill of sale required to register a vehicle?
• Essential Documents
• What Exactly Is a Car bill of Sale?
• How to Use a Vehicle Bill of Sale?
• State DMV Locations and Bill of Sale Forms
• FAQ
• How do I make a car sale agreement?
• Do I need a bill of sale if I have the title Indiana?
• What are the basics of a sale agreement?
• Vehicle Bill of Sale – Sample

What Is a Bill of Sale for a Vehicle?

The ownership of a motor vehicle can be transferred legally from one person to another via a vehicle bill of sale. It demonstrates that a deal was made. It is necessary to register a car with the Department of Motor Vehicles (DMV).

It can also go by other names and is frequently used to refer to a car:

• Sale Bill for a Car

• Bill of Sale for a Vehicle

• Vehicle Bill of Sale

• Purchasing Auto Agreement

• Vehicle Purchase Agreement

• Car Purchase Agreement

• DMV Bill of Sale

• Receipt for Car Sale

What Information Should Be on a Bill of Sale for a Vehicle?

A vehicle bill of sale must have the following components in order to be valid:

Information on the parties engaged in the sale - The following ought to be mentioned:

Names
Addresses

Signatures
The transaction date
The Vehicle Description: Keep the report pertinent to the sale at all times. If the vehicle is a car, for instance, you should mention:
Year
Make and Model
Identifying a vehicle by its VIN
Mileage

License
Registration number
The cost of purchasing the car In the event that the car is a partial gift, you should additionally mention the discounted price. You must specify in the bill of sale if the car is a gift.

What Sets a Bill of Sale for a Vehicle Apart from a Title?

You must have the car bill of sale and the title in your possession after making a purchase of a vehicle. Although these documents are similar, they are both crucial to the sales process.

A vehicle bill of sale provides evidence of a seller and buyer transfer. It would include information on the transaction and the vehicle, including the date, the names of the seller and the buyer, the make and model of the car, its color, the selling price, and the VIN number. The seller is in charge of drafting the bill of sale, which is necessary for the majority of states in order to register the car.

The last stage in the sales process is getting the title. Since you can't receive a title without a title, it may be said that the title is a complementary document to the bill of sale. However, once you have the paperwork, the car will be yours legally.

Buyers will get official documentation of ownership once they have signed the contract and the appropriate government agency has processed it. The seller will be released from the car's obligations after the title is transferred.

Why Is a Vehicle Bill of Sale Necessary? You need a bill of sale when buying or selling a car privately to show that the seller actually transferred ownership to the new owner. The document, which functions similarly to a receipt, is frequently used for the following purposes:

• Tax purposes

• Vehicle Insurance

• DMV registration

The buyer and seller are shielded from future disputes regarding the car's ownership or condition by a vehicle bill of sale. The document's precise description of the vehicle's state at the time of sale prevents the buyer from later disputing damage and requesting a refund.

Is a bill of sale required to register a vehicle?

A bill of sale is not required to register a vehicle. On the other hand, it depends on the state. For instance, if an automobile has all the necessary details, it can be registered in Arkansas with a title. However, a bill of sale is advised regardless of the state you are in.

The requirements for automobile registration can be found on the DMV website for your state.

Essential Documents

A bill of sale can be used for any land vehicle, however, it is most frequently used when selling an automobile. The documents you require to complete the sale of a car efficiently and in accordance with state regulations are provided here.

Purchase Bill

The bill of sale is proof that there was an ownership transfer between the parties. In some states, you might not need to present this paperwork. However, the following states do demand a bill of sale as proof of ownership:

• Alabama

• Arkansas

• Colorado

• Connecticut

• Hawaii

• Idaho

• Maine

• Nebraska

• New York

• Ohio

• Rhode Island

• South Dakota

• Vermont

• Washington

• West Virginia

• Wyoming

Having a bill of sale for your records is usually advised, even if it's not legally required in your jurisdiction.

Your bill of sale typically does not need to be notarized by an authorized legal agent in order to be valid. But in Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana, a car bill of sale must be notarized. [2]

No matter what your state's regulations are, having your bill of sale notarized might be beneficial since it serves as evidence that the seller gave you ownership of the car.

The Heading

If you are the vehicle seller, be sure you have taken care of all debts and liabilities before selling the vehicle. This involves settling any unpaid liens or debts or informing the buyer prior to the sale. It is crucial that you keep this paperwork in your hands after the sale because it attests to the vehicle's legal ownership. You can ask your local DMV for a duplicate title if you've lost the original.

Statement of Transfer or Release of Liability

In order for the DMV to formally acknowledge that you are no longer the vehicle's owner, you must submit a notice of transfer. A Release of Liability form may also be obtained and completed.

With a title, you can transfer ownership, but the seller will still need to wait for the buyer to sign the paperwork.

By informing the DMV of the sale, you can shield yourself from potential responsibilities in your capacity as a seller. Although it is not necessary, it is still a good idea to let them know.

Service History

Always include records of the vehicle's maintenance history before selling it. If you have assured the buyer that the vehicle is in good condition, this is especially crucial. The buyer's confidence in the transaction is increased by the proof of this, which serves as a positive indicator.

Owner's Guide

Although it's not legally required, the owner's manual is useful to the buyer in case they ever experience problems with the vehicle. You can find the handbook online in PDF format if you misplaced it.

What Exactly Is a Car bill of Sale?

A Car Bill of Sale is a legal document that serves as proof of the transfer of ownership for a motor vehicle. This document records essential details about the sale, including information about the buyer, seller, vehicle, and the terms of the transaction. It acts as a binding agreement between the parties involved, acknowledging the change in ownership and outlining any conditions or warranties associated with the sale.

How to Use a Vehicle Bill of Sale

A vehicle bill of sale is a legal document that records the sale of a vehicle from one party to another. It serves as proof of the transaction and includes important information about the vehicle and the sale terms. To use a vehicle bill of sale, follow these steps:

1. Obtain the Bill of Sale Form:
   • Many states provide official bill of sale forms that you can download from their Department of Motor Vehicles (DMV) or equivalent agency's website. You can also find generic templates online. Ensure that the form complies with your state's regulations.

2. Gather Information:
   • Collect all relevant information about the vehicle and the transaction. This typically includes:
     • The vehicle's make, model, year, VIN (Vehicle Identification Number), and odometer reading.
     • The buyer's and seller's full legal names, addresses, and contact information.
     • Sale date.
     • Purchase price or consideration (the amount paid for the vehicle).
     • Any warranties or guarantees, if applicable.
     • Any other specific terms or conditions of the sale.

3. Complete the Form:
   • Fill out the bill of sale form accurately and legibly. Use a typewriter or print neatly in ink. Ensure that all information is accurate and matches the details on the vehicle's title and registration documents.

   Here are some tips:

   • Check out other seller listings for the same motorcycle or a similar model in your area.
   • Alternatively, you can use sites like Kelley Blue Book and Cycle Trader to estimate the price. Fill in the year, make, and model of the motorcycle, and these sites will show the suggested listing price.
   • Once you know the typical listing price for your motorcycle, you can adjust it based on usage, missing parts, or any customizations you’ve made.

4. Sign the Document:
   • Both the buyer and the seller should sign the bill of sale in the presence of a notary public or witnesses, depending on your state's requirements. Notarization may be required in some states for added legal validity.

5. Keep Copies:
   • Make copies of the completed and signed bill of sale for both the buyer and the seller. These copies will serve as proof of the transaction and protect both parties in case of any disputes.

6. Submit Required Documents:
   • Depending on your state's regulations, you may need to submit a copy of the bill of sale to the DMV or equivalent agency to officially transfer the vehicle's ownership. Check your state's specific requirements.

7. Cancel Your Liability:
   • As the seller, notify your insurance company and the DMV (if required) that you have sold the vehicle to transfer any liability associated with the vehicle.

8. File Your Copy:
   • Store your copy of the bill of sale in a safe place, such as a filing cabinet, as you may need it for tax purposes or in case of disputes.

Remember that the specific requirements and regulations regarding vehicle bills of sale can vary by state and country, so it's essential to consult your local DMV or legal authority for guidance and ensure that you follow the appropriate procedures for your jurisdiction.

State DMV Locations and Bill of Sale Forms

State	DMV Location	Is a Vehicle Bill of Sale Required?
Alabama (AL)	Alabama Vehicle Licensing Offices	Yes
Alaska (AK)	Alaska Division of Motor Vehicles (DMV) Offices	No
Arizona (AZ)	Arizona Motor Vehicles Division (MVD) Locations	No
Arkansas (AR)	Arkansas Department of Finance and Administration (DFA) Office Locations	Yes
California (CA)	California Department of Motor Vehicles (DMV) Field Offices	No
Colorado (CO)	Colorado County Motor Vehicle Offices	Yes
Connecticut (CT)	Connecticut Department of Motor Vehicles (DMV) Offices	Yes
Delaware (DE)	Delaware Division of Motor Vehicles (DMV) Contact and Location Information	No
District of Columbia (DC)	District of Columbia Department of Motor Vehicles (DMV) Locations	No
Florida (FL)	Florida Highway Safety and Motor Vehicles Office Locations	No
Georgia (GA)	Georgia County Tag Office Locations	Yes
Hawaii (HI)	Hawaii Vehicle Licensing and Registration Division Locations	Yes
Idaho (ID)	Idaho Division of Motor Vehicles (DMV) Locations	No
Illinois (IL)	Illinois Drivers Service Facility Locations	Yes
Indiana (IN)	Indiana Bureau of Motor Vehicles (BMV) Branch Map	No
Iowa (IA)	Iowa Department of Transportation (DOT) Locations	Yes
Kansas (KS)	Kansas County Treasurers Association Location Directory	Yes
Kentucky (KY)	Kentucky Driver Services Offices	No
Louisiana (LA)	Louisiana Office of Motor Vehicles (OMV) Locations	No
Maine (ME)	Maine Bureau of Motor Vehicles (BMV) Locations	Yes
Maryland (MD)	Maryland Motor Vehicle Administration (MVA) Locations	Yes
Massachusetts (MA)	Massachusetts Registry of Motor Vehicles (RMV) Locations	Yes
Michigan (MI)	Michigan Secretary of State (SOS) Office Locator	Yes
Minnesota (MN)	Minnesota Driver and Vehicle Services Office Locations	No
Mississippi (MS)	Mississippi Department of Public Safety (DPS) Contact Information	Yes
Missouri (MO)	Missouri Department of Revenue (DOR) Motor Vehicle and Driver License Office Locations	Yes
Montana (MT)	Montana Motor Vehicle Division (MVD) Locations	Yes
Nebraska (NE)	Nebraska Department of Motor Vehicles (DMV) County Locations	Yes
Nevada (NV)	Nevada Department of Motor Vehicles (DMV) Office Locations	Yes
New Hampshire (NH)	New Hampshire Department of Motor Vehicles (DMV) Locations	Yes
New Jersey (NJ)	New Jersey Motor Vehicle Commission (MVC) Facility Locations	No
New Mexico (NM)	New Mexico Motor Vehicle Division (MVD) Locations	Yes
New York (NY)	New York Department of Motor Vehicles (DMV) Office Locations	Yes
North Carolina (NC)	North Carolina Department of Motor Vehicles (DMV) Office Locations	No
North Dakota (ND)	North Dakota Motor Vehicle Site Locations	No
Ohio (OH)	Ohio Bureau of Motor Vehicles (BMV) Locations	Yes
Oklahoma (OK)	Oklahoma Department of Public Safety (DPS) Locations	Yes
Oregon (OR)	Oregon Department of Motor Vehicles (DMV) Locations	No
Pennsylvania (PA)	Pennsylvania Department of Motor Vehicles (DMV) Locations	No
Rhode Island (RI)	Rhode Island Division of Motor Vehicles (DMV) Locations	Yes
South Carolina (SC)	South Carolina Department of Motor Vehicles (DMV) Locations	No
South Dakota (SD)	South Dakota County Treasurers Contact Information	Yes
Tennessee (TN)	Tennessee Drivers Services Locations	No
Texas (TX)	Texas Department of Motor Vehicles (DMV) Contact Information	Yes
Utah (UT)	Utah Department of Motor Vehicles (DMV) Office Locations	Yes
Vermont (VT)	Vermont Department of Motor Vehicles (DMV) Locations	Yes
Virginia (VA)	Virginia Department of Motor Vehicles (DMV) Locations	No
Washington (WA)	Washington State Department of Licensing (DOL) Locations	Yes
West Virginia (WV)	West Virginia Department of Motor Vehicles (DMV) Regional Office Locations	Yes
Wisconsin (WI)	Wisconsin Department of Motor Vehicles (DMV) Customer Service Centers	No
Wyoming (WY)	Wyoming Department of Transport (DOT) Drivers Services Locations	Yes

Related Questions Asked

How do I make a car sale agreement?

Important Clauses of A Vehicle Sale And Purchase Agreement

1. Obligations of the seller (Warranties and indemnities)
2. Obligations of the buyer
3. Vehicle details
4. Delivery
5. Payment / Consideration
6. Entirety
7. Governing law / Dispute resolution
8. Signature, Photo & Thumb Impression

Do I need a bill of sale if I have the title Indiana?

Yes, Indiana requires a bill of sale for private party vehicle transactions. Form 44237 is what you need, and it requires signatures from both the buyer and the seller.

What are the basics of a sale agreement?

Essentials of a sales agreement

Basic information i.e., name, address and contact number of the buyer and seller. If there are any co-signers of the contract, then their name, address and contact number. Kind of sale taking place. Date when the agreement was initiated.

Vehicle Bill of Sale – Sample