The purchase of a piece of property and its transfer from a seller to a buyer are both documented by a bill of sale. It’s frequently used in car sales and might be mandated by your state.
Find out more about a bill of sale, what it contains if you need one to sell a car, and how to create one.
What Is a Bill of Sale?
A bill of sale is a record that certifies a transaction in which property is sold and transferred from one party to another. Although it can be applied to the sale of many different things, the sale of vehicles is where it is most frequently used.
The parties engaged in the transaction, the property being transferred, as well as the transaction’s date and price, will all be listed on the bill of sale. As a result, the sale will be documented for both parties. It may be crucial to provide evidence of the seller’s release of liability.
Let’s take the example of a private party selling an automobile to another. However, the purchaser failed to register the car correctly and then used it 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?
All private automobile sales should be documented with a bill of sale so that there is proof that both parties understood the terms. It is necessary for some states, though. Additionally, a number of states demand that you utilize a certain form and/or notarize the bill of sale.
Here is a full breakdown of each state’s bill of sale regulations.
| State | Requires Bill of Sale for Private Party Vehicle Purchase with Title | Requires a Notarized Bill of Sale | Requires Specific Bill of Sale Form | State Provides Form |
| Alabama | Yes | No | No | Yes |
| Alaska | No | No | No | Yes |
| Arizona | No | No | No | Yes |
| Arkansas | No | No | No | Not Found |
| California | Yes | No | No | Yes |
| Colorado | Yes | No | No | Yes |
| Connecticut | Yes | No | No | Yes |
| Delaware | No | No | No | Not Found |
| Florida | Yes | No | Yes | Yes |
| Georgia | Yes | No | Yes | Yes |
| Hawaii | No | No | No | Not Found |
| Idaho | Yes | No | No | Yes |
| Illinois | No (But may be required on a case-by-case basis) | No | No | Not Found |
| Indiana | No | No | No | Yes |
| Iowa | Yes | No | No | Yes |
| Kansas | No (unless the title doesn’t have space for the purchase price) | No | Yes | Yes |
| Kentucky | No | No | No | Not Found |
| Louisiana | No (unless a title has not been issued in the state for the vehicle before) | Yes | No | Yes |
| Maine | Yes | No | No | Yes |
| Maryland | Yes | Yes (under some conditions) | Yes | Yes |
| Massachusetts | No | No | No | Not Found |
| Michigan | No | No | No | Not Found |
| Minnesota | No | No | No | Not Found |
| Mississippi | No (unless the title doesn’t have space for the purchase price) | No | No | Not Found |
| Missouri | Yes (Or a Notice of Sale) | No | Yes | Yes |
| Montana | No | No | No | Yes |
| Nebraska | Yes (or the DoR Form 6) | Not specified | No | Yes |
| Nevada | Yes | No | Yes | Yes |
| New Hampshire | No (except for title exempt vehicles) | No | No | Not Found |
| New Jersey | Yes | No | No | Not Found |
| New Mexico | No (Unless Assignment of Title is not on the back of the Title) | No | Yes | Yes |
| New York | Yes | No | No | Yes |
| North Carolina | No | No | No | Not Found |
| North Dakota | No | No | No | Yes |
| Ohio | No | No | No | Not Found |
| Oklahoma | No | No | No | Not Found |
| Oregon | No (But you can sign either the title or a bill of sale) | No | No | Yes |
| Pennsylvania | No | No | No | Not Found |
| Rhode Island | Yes | No | No | Not Found |
| South Carolina | No (Unless the purchase price and odometer reading are not on the title) | No | No | Not Found |
| South Dakota | No | No | No | Yes |
| Tennessee | No | No | No | Not Found |
| Texas | No | No | No | Not Found |
| Utah | No | No | No | Yes |
| Vermont | Yes | No | No | Yes |
| Virginia | Yes | No | No | Yes |
| Washington | Yes | No | No | Yes |
| West Virginia | Yes (If the sale price is less than 50% of the NADA Clean Book loan value) | Yes | Yes | Yes |
| Wisconsin | No | No | No | Yes |
| Wyoming | Yes | Yes | Not specified | Yes |
How To Write a Bill of Sale for a Car
Even though many states offer a bill of sale forms, your state can also let you draft one on your own. However, it will require particular details, which frequently include:
- Date the vehicle was sold
- The selling price of the vehicle
- Vehicle’s make, year, model, odometer reading, and vehicle identification number (VIN)
- Name, address, and signature of the buyer
- Name, address, and signature of the seller
Frequently Asked Questions (FAQs)
How do you fill out a title when selling a car?
Different states have slightly different requirements for completing the title when selling your car. The selling date, selling price, odometer reading, seller’s and buyer’s names, and other fields are routinely filled out. Signatures are frequently needed to transfer ownership to the buyer, waive the seller’s interest in the car, and attest that all the information provided was truthful and accurate.
Who pays sales tax when you’re selling a car privately?
