Use our bill of sale forms to record the sale of any item and protect both buyer and seller.
Updated August 21, 2024
Written by Sara Hostelley | Reviewed by Brooke Davis
A bill of sale is a document that details a sales transaction or transfer of ownership between two parties. Similar to receipts, it records the sale or transfer of valuable assets like cars and protects the buyer and seller from future legal disputes over the item’s condition or ownership.
Either party (buyer or seller) can write a bill of sale, but it’s typically prepared by the seller. Once signed, both parties should keep copies to prove the transaction’s completion.
Buyers and sellers can follow these steps to buy and sell vehicles privately.
The buyer should get the motor vehicle’s vehicle identification number (VIN) from the seller to determine the car’s ownership and accident history. This 17-character number is unique to every car and can be found on the automobile’s title or registration.
They can also see whether someone has ever tampered with the car’s odometer or if the vehicle has a significant malfunction or defect that makes it unsafe to drive.
Conducting your due diligence when buying a used car can help you get the best deal possible.
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The seller must provide various documents to complete the sale and transfer ownership to the buyer. These documents include the following:
Once the buyer and seller agree to the sale, negotiate the price, payment terms, and vehicle condition. A bill of sale must include details about the parties, vehicle, and transaction. If a warranty is included, it should clearly define the coverage. If not, the vehicle is sold “as-is,” so inspect it thoroughly before signing.
The parties can now complete the sale at an in-person meeting. The buyer will bring the funds, and the seller will bring the vehicle. The seller will sign the title to the buyer, and both parties will sign the bill of sale.
If your state requires notarization for vehicle bills of sale, you must have a notary observe both parties’ signatures.
After finalizing it, the new owner will register the vehicle within a specific time and pay any associated sales tax.
Registering the vehicle involves going to a local motor vehicle department office and presenting the relevant fees and the following documents:
In terms of vehicle sales, a seller must complete a certificate of title to establish the buyer as the new legal owner in the eyes of the government.
State | Location | Bill of Sale Required? |
---|---|---|
Alabama | Vehicle Licensing Offices | Yes |
Alaska | Division of Motor Vehicles | No |
Arizona | Motor Vehicle Division | No |
Arkansas | Department of Revenue Office | Yes |
California | Department of Motor Vehicles | No |
Colorado | Division of Motor Vehicles | No |
Connecticut | Dept. of Motor Vehicles | Yes |
Delaware | Dept. of Motor Vehicles | No |
Florida | Motor Vehicle Service Centers | No |
Georgia | County Tag Office | Yes |
Hawaii | Department of Transportation, Highways Division | Yes |
Idaho | Idaho Transportation Department | No |
Illinois | Facility Locations | Yes |
Indiana | Indiana Branch Locations | No |
Iowa | Iowa Motor Vehicle Division | Yes |
Kansas | Kansas Department of Revenue | Yes |
Kentucky | Drive.KY.Gov | No |
Louisiana | Office of Motor Vehicles | No |
Maine | Bureau of Motor Vehicles | Yes |
Maryland | Motor Vehicle Administration | Yes |
Massachusetts | Registry of Motor Vehicles | Yes |
Michigan | DMV Office Finder | Yes |
Minnesota | Driver and Vehicle Services | No |
Mississippi | Tax Collector’s Office | Yes |
Missouri | License Office Locations | Yes |
Montana | Motor Vehicle Division | Yes |
Nebraska | Department of Motor Vehicles | Yes |
Nevada | Department of Motor Vehicles | Yes |
New Hampshire | Division of Motor Vehicles | Yes |
New Jersey | Motor Vehicle Commission | No |
New Mexico | Motor Vehicle Division | Yes |
New York | Department of Motor Vehicles | Yes |
North Carolina | Department of Motor Vehicles | No |
North Dakota | Motor Vehicle Site Locations | No |
Ohio | Bureau of Motor Vehicles | Yes |
Oklahoma | Department of Public Safety | Yes |
Oregon | Department of Motor Vehicles | No |
Pennsylvania | Department of Motor Vehicles | No |
Rhode Island | Department of Motor Vehicles | Yes |
South Carolina | Department of Motor Vehicles | No |
South Dakota | Motor Vehicles Division | Yes |
Tennessee | Driver Services | No |
Texas | Department of Motor Vehicles | Yes |
Utah | Department of Motor Vehicles | Yes |
Vermont | Department of Motor Vehicles | Yes |
Virginia | Department of Motor Vehicles | No |
Washington | Department of Licensing | Yes |
West Virginia | Department of Motor Vehicles | Yes |
Wisconsin | Department of Motor Vehicles | No |
Wyoming | County Treasurer’s Office | Yes |
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