What Is A Bill Of Sale For A Car And Is It Required? (2026)

What Is a Bill of Sale for a Car?

The bill of sale for a car is a legal document establishing the details of the transaction. It’s similar to the purchase contract you would sign if you bought a car from a dealership. This document helps to prove the sale date, which can protect you if the vehicle is involved in any accidents because it shows that you no longer own the car.

Bill of Sale vs. Car Title vs. Registration

What is a bill of sale vs. title? A bill of sale acts as a record of the transaction, while the title is official proof of the change in ownership. A bill of sale is not always needed, but the car title is.

The registration states that the vehicle is allowed on public roads, tying the owner to the car.

Do You Need a Bill of Sale to Buy or Sell a Car?

Not all states require a bill of sale, but it’s recommended that you create one if you’re selling the vehicle or that you ask for one if you’re purchasing it.

In states such as West Virginia, you will need to have a notarized bill of sale, though only if you buy the car from someone for less than 50% of its National Automobile Dealers Association (NADA) Clean Loan value. You will also have to include copies of the driver’s licenses of both parties.

Most states don’t require notarization. Always check the laws in your area before buying or selling a car.

What Information Should a Bill of Sale Include?

A bill of sale typically includes:

• A detailed description of the car
• The VIN
• The full names and contact information of both parties
• The sale date
• The purchase price
• Odometer reading at the time of the sale
• Signatures of both the seller and buyer

It’s also a good idea to have an as-is clause to ensure no one disputes the state of the car. The as-is clause should note that the buyer accepts the car in its current state and that the seller makes no promises about any future repairs.

How to Get or Write a Bill of Sale for a Car

You can get a bill of sale for a car through your state’s Department of Motor Vehicles. In Florida, for example, you can download the form from the State of Florida Department of Highway Safety and Motor Vehicles. This form is a combination of a Notice of Sale/Bill of Sale.

You can also use a template or write your own form, as long as it includes everything required in your state.

How to Use a Bill of Sale to Transfer Vehicle Ownership

The bill of sale must be accompanied by a signed title to legally transfer vehicle ownership. The bill of sale proves the transaction took place.

Report the Sale to Your DMV

As soon as possible after the sale of the vehicle, you need to report it to your DMV. Deadlines to do so and their procedures will vary by state.

California, for example, requires a Notice of Transfer and Release of Liability within five calendar days of the sale. This would shield the seller from the consequences of traffic violations (such as speeding or running a red light) or lawsuits in which the vehicle is involved.

Florida, on the other hand, requires notice of the sale within 30 days.

Legal Resources at Your Fingertips

If you have questions about legal processes like these, ConsumerShield can help. Explore our online tools and resources today.