Bill of Sale Templates

Bill of Sale is an important document when it comes to “purchase and sale” document that completes a transaction between the 2 parties i.e. buyer and seller.

Bill of Sale is a document that explains transfer of goods from one party to another, this is easily understood by everyone. A “Bill of Sale” document also acts as a legal evidence that full authority has been provided in a transaction and that the seller has transferred the rights to the buyer of the goods/assets being sold.

So, it is important to know all about the Bill of sale document and various ways in which it can be used and act as a legal document.

What is a Bill of Sale?

Bill of Sale is an official document that offers all the details of writing sale of goods or transfer of property between the seller and the buyer. It also works as an evidence in the process.

Title – An important point to note while signing a Bill of Sale, any certificate of title should also be transferred to the new owner.

How to buy or sell a vehicle (Privately)

Mostly, a Bill of Sale document is used as a legal contract in the process of transferring ownership of a motor vehicle. There are a set of instructions that can be used to coordinate a successful transfer as the buyer or seller.

Step 1 – Negotiate the Terms

Preparing a Bill of Sale Document

Every purchase and sale includes certain terms of agreement, similarly, once the decision is made to purchase and sale of the motor vehicle there are certain terms of agreement that need to agreed and entered. In case the sale of the vehicle is for cash, the entire amount will be due at the time of sale. If any kind of financing is required, then it should be done prior with a local bank or credit union. If the vehicle is being sold for cash and trade, it is crucial that the agreement includes both the vehicle and the terms of transaction must be stated (common for vehicles purchased from dealers).

Step 2 – Vehicle Identification Number (VIN)

Where to Find a VIN

It is important for every buyer to have a Vehicle Identification Number (VIN) of the motor vehicle. It consists of 17 characters that is unique to every motor vehicle. A VIN number is usually located on the driver’s side windshield or inside where the door meets the vehicle. If you find it difficult to find the VIN number, then there are 2 places where it can be located, which are Vehicle’s title or registration. With the help of this number, you can have a look at the all the repairs done till date on the vehicle such as car accidents, water damage and ownership history.

Private Inspection – With the VIN number, only the damage which is reported with the insurance company is mentioned in the VIN report. So, it is always preferred to have 3rd party inspection done for the vehicle check to ensure the proper working condition of the vehicle.

Step 3 – Gather Vehicle Documents

Gathering Vehicle Title and Registration Documents

Title and Registration – The first and most important document is to have the Vehicle’s title and registration should be completed and must be available with the buyer. If the title is not available, then the buyer can request for a new title from DMV office that usually takes up to 10 to 14 business days.

Step 4 – Complete the Sale

Completing the Sale of a Motor Vehicle

It is necessary to line up all the necessary papers to complete the sale. Both the parties should meet at a mutual location with the buyer bringing the funds and seller the vehicle together. When this opportunity comes the Bill of Sale should be signed by both the parties together and the Title should be signed over.

Step 5 – Registration

Register a Vehicle with DMV

Once the Bill of Sale is finalized, the vehicle can take the possession of the new car and needs to register it within the particular time period. However, there is a complete process in which a vehicle needs to be registered and there are certain documents that need to be submitted by the owner and will need to take it to a DMV office location.

List of documents:

  • Bill of Sale: The original document that is signed by the Seller and the Buyer
  • Title – A new certificate of Title will be issued and is sent to the registered address within the 30 days
  • Odometer Disclosure Statement – This is issued when car is younger than 10 years and under 16000 pounds
  • Proof of Car Insurance – In such cases an insurance card is suitable
  • Identification – (For instance a driver licence or passport)
  • Fee(s) – There is a tax or fee charged in every state
  • Emissions Test – (*only required in some states)
  • The vehicle registration is completed means the buying process is completed.

DMV Offices: By State

Every State has their own regulations and terms when it comes to finalizing a transaction and not every State requires you to complete a Bill of Sale when finalizing a vehicle transaction. And, no state prohibits from completing a Bill of Sale document. Not every state require a Bill of Sale, they still offer an official form (so, it’s recommended to complete a Bill of Sale even if it’s not required in your state). For certain states there are Bill of Sale form required and for more information regarding Bill of Sale contact your nearest DMV office

Frequently Asked Questions (FAQ)

How to write a Bill of Sale?

It is important that one should know how to write a Bill of Sale. Below is the example to know a particular way of writing Bill of Sale. If your State does not provide a Bill of Sale, then you can certainly go for the formatted document and fill in the information in the blank spaces.

Step 1: Buyer & Seller

You can download the Bill of Sale format available on the site. The critical information that should be entered first are:


Country and State

Name and mailing address of both the Buyer and Seller

Step 2 – Payment Type

When it comes to payments, there are only 3 types in which your transaction can go; a payment, trade-in or a gift.

You can for the below mentioned 2 possibilities:

  • In case the payment is by Payment or Trade-In, it is important to enter the vehicle information such as the Make, Model, Body-Type, Year, Color and the Miles on the Odometer.
  • If the Vehicle is a Trade-In, enter the Vehicle being received.

Step 3 – VIN, TAXES and other Terms & Conditions

To find the VIN number a person should look at Vehicle’s Title, registration card, and even the owner’s manual. There are total 17 characters in a VIN number including all the letters and numbers.

  • Enter the 17 character VIN
  • Taxes can be either included or excluded from the sale, checkmark the box accordingly.
  • You can enter the terms and conditions of the Sale.

Step 4 – Odometer Disclosure Statement

It is an important document required by the federal law when transferring the vehicle. It is important to mention the seller’s name and an accurate mileage count read on the odometer. In case, the mileage count is not accurate because of a faulty odometer, then select the appropriate checkmark.

  • To complete the document, you would need signature from the buyer and to witnesses.

Step 5 – Certificate of Acknowledgement

It is a form that certifies absolute proof that a Bill of Sale used in a transaction is vaild. The Buyer and Seller must be present in the presence of a Notary Public when the form is completed.

The following information must be entered correctly:

  • State and Country
  • Date of Execution
  • Name of Buyer(s) and Seller(s)
  • Notary’s Name and Signature