Free Bill of Sale Templates (PDF)

The bill of sale is a document that provides all the necessary information about the buyer and seller, the transferred item, the purchase price, and other relevant details.

Additionally, this document provides the seller’s and buyer’s disclosures, protecting their rights and limiting their liabilities. These disclosures are especially common when transferring used items. In that case, the seller will disclose all the flaws and damages of the transferred item, and the buyer will confirm that they are purchasing the item in its current condition.

The bill of sale is often required for registering motor vehicles, vessels, guns, or other items. Even when it’s not required, people often use it:

Other Uses for Bill of Sale

To provide the information not included in the certificate of title
As proof of ownership when there is no certificate of title
To limit the seller's liability after the transfer
To make a record of the property transfer for the tax purposes

Bill of Sale Forms By State

Different Types of Bill of Sale Forms

Bill of Sale Forms By Types

Motor vehicle bill of sale. Most states require a bill of sale for motor vehicle registration. The bill of sale will provide all necessary information to the authorities about the new owner of the vehicle, details about the vehicle, purchase price, and more.
Vessel bill of sale. The bill of sale is also used for vessel registration in some states, especially if there is no title.
Firearms bill of sale. Firearm registration is not required in many states. However, the seller should use the bill of sale as proof that the firearm is no longer in their possession.
Trailer bill of sale. In some states, trailers and RVs have to be registered. Therefore, the parties should use the bill of sale as proof of transfer.

Bill of Sale Key Terms

Important Bill of Sale Terms

Seller. A seller is a person who transfers the property to another person, called the buyer.
Buyer. A buyer is a person who pays the purchase price and becomes the new owner of the transferred property.
Purchase price. A purchase price is a value the buyer owes to the seller for transferring the item. It can be in the form of a money transfer, default on debt, trade-in, and more.
Trade-in. With a trade-in, the seller and buyer exchange the items from their possession. This kind of transfer is common for the motor vehicle trade, where the buyer will trade their old car in exchange for the new one and will pay a certain amount of money to cover the difference in value.
As is. This term means that the buyer agrees to buy the item in the seen condition and will not have any future claims regarding the item’s condition.
Odometer reading. The section in the bill of sale for a car that provides the mileage of the vehicle at the moment of purchase.
Vehicle identification number (VIN). The unique number that identifies the vehicle that must be included in the bill of sale for a car.

Why Do You Need a Bill of Sale Form?

The bill of sale serves as proof of all the relevant details connected to the item transaction.

Moreover, the bill of sale can include details about the item's condition at the moment of purchase, which protects the seller from any future claims regarding the item's condition. Additionally, the seller will have proof of the moment when the item left their possession and will not have any liabilities connected to the transferred item after that moment.

The bill of sale is also beneficial for the buyer since it can serve as proof of ownership if there is no title to the purchased item. The buyer can then use it to register their item or as proof of purchase price for tax purposes.

How to Buy or Sell a Vehicle

The following steps outline the process of vehicle purchase in most states.

#1. Negotiate the Agreement Terms

Firstly, the buyer and seller should agree on the price of the item, payment terms, methods of payment, and transfer costs.

When it comes to the payment, the buyer and the seller can agree that the buyer pays the purchase price upfront or in installments. If there is a trade-in, the parties must determine the value of the buyer’s vehicle and, subsequently, the amount the buyer has to pay to cover the difference in value.

The bill of sale for a car should also provide details about the parties, the transferred vehicle, and the terms of the transaction. Finally, the bill of sale for a car should include warranty details.

If the vehicle is used and sold without warranty, it must include information about all flaws and damages. That way, the parties will prevent any future disputes about the condition of the vehicle.

#2. Get the Vehicle Identification Number (VIN)

The vehicle identification number, or VIN number, is the vehicle’s unique number that helps the parties identify and individualize it. It usually contains 17 characters and can be found on the vehicle's registration or title.

The VIN number can also be found on the vehicle itself, usually on the windshield, the front of the engine block, or the vehicle’s frame.

Using this number, you can search the records and find the vehicle’s repair history, odometer reading, and ownership history.

#3. Collect Vehicle Documents

The seller must provide the following documents and give them to the buyer at the moment of vehicle transfer:

Vehicle Transfer Requirements

A photo identification, like a driver’s license
The vehicle’s title and registration.
The vehicle’s bill of sale
The odometer disclosure

The odometer disclosure can be included in the bill of sale for a car, or it can be a separate document. Moreover, the bill of sale should include the parties’ full names, mailing addresses, zip codes, and contact details.

#4. Finalize the Sale

After determining all the details of the transaction and collecting all the necessary documents, the parties will meet to finalize the transaction.

The buyer will give the funds to the seller, and the seller will sign the title and hand over the keys to the vehicle to the buyer. During the transaction, both parties will sign the bill of sale and officially confirm all the terms of the transaction.

In some states, the parties must sign the bill of sale in front of the notary public. Even if that is not the case, the parties should consider notarizing their bill of sale to confirm the authenticity of the document.

#5. Register the Vehicle

Finally, the new owner of the vehicle will register the vehicle at the local DMV and pay the appropriate fees and sales tax.

When registering the vehicle, the new owner will have to provide the following documents:

Vehicle Registration Requirements

The signed bill of sale
The vehicle title
The odometer disclosure statement (if not included in the bill of sale)
The proof of car insurance

DMV Offices by State

State	DMV Office Location	Is a Bill of Sale Required?
Alabama	County Title & Registration Office	Yes
Alaska	Division of Motor Vehicles (DMV)	No
Arizona	Motor Vehicle Division (MVD)	No
Arkansas	Dept. of Revenue Office	Yes
California	Dept. of Motor Vehicles (DMV)	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 (DMV)	No
Illinois	Facility Locations	Yes
Indiana	Indiana Branch Locations (DMV)	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	Dept. of Motor Vehicles (DMV)	Yes
Nevada	Dept. of Motor Vehicles (DMV)	Yes
New Hampshire	Division of Motor Vehicles (DMV)	Yes
New Jersey	Motor Vehicle Commission	No
New Mexico	Motor Vehicle Division	Yes
New York	Dept. of Motor Vehicles (DMV)	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	Dept. of Motor Vehicles	No
Pennsylvania	Dept. of Motor Vehicles (DMV)	No
Rhode Island	Dept. of Motor Vehicles (DMV)	Yes
South Carolina	Dept. of Motor Vehicles (DMV)	No
South Dakota	Motor Vehicles Division	Yes
Tennessee	Driver Services	No
Texas	Dept. of Motor Vehicles (DMV)	Yes
Utah	Dept. of Motor Vehicles (DMV)	Yes
Vermont	Dept. of Motor Vehicles (DMV)	Yes
Virginia	Dept. of Motor Vehicles (DMV)	No
Washington	Dept. of Licensing	Yes
West Virginia	Dept. of Motor Vehicles (DMV)	Yes
Wisconsin	Dept. of Motor Vehicles (DMV)	No
Wyoming	County Treasurer’s Office	Yes

Bill of Sale FAQ

Most states require a bill of sale for registering the car. Even if it’s not required, you should consider having it, as it outlines the main details of the transaction. This protects both the buyer's and seller’s interests and prevents any future disputes.
Both parties must sign the bill of sale. By signing the bill of sale, the seller agrees to transfer the item under the conditions set in the bill of sale, and the buyer agrees to pay the purchase price.
Yes, the bill of sale contains all the information about the transaction as the receipt, so the parties can use the bill of sale as the receipt.
Some states require a notarized bill of sale for registration. However, even if that is not the case, the parties should still acknowledge their bill of sale before the notary public to confirm the authenticity of the document.
The bill of sale should include information about the seller and buyer, such as their full names and mailing addresses. It should also include all the relevant details about the transferred item. Finally, the bill of sale should provide the seller's and buyer’s disclaimers and other terms of the agreement.
The easiest and cheapest way to resolve disputes is through negotiation between the parties. That way, they can resolve their disputes without involving third parties. If the dispute cannot be resolved in this way, the parties can use mediation or litigation.
However, litigation can last a long time and be costly for the parties, and it is therefore recommended only as a last-resort solution if the parties cannot resolve their dispute in any other way.
A sales agreement outlines the terms of the transfer before the sale, while a bill of sale is used before and after the sale to transfer ownership from the seller to the buyer. In practice, a sales agreement is mostly used for complex transactions, unlike a bill of sale.
If the buyer pays the purchase price on the same day the item is transferred, the parties don’t have to use the promissory note. However, if the payment date is different from the date of the item transfer, the parties should secure the payment by creating a promissory note.