Bill Of Sale Template For A Sale Agreement

When you buy a car, you and the buyer sign a bill of sale agreement. This document is important because it transfers ownership of the vehicle from the seller to the buyer. It also becomes a legal record of the purchase price, which can be used for tax purposes or in case there is ever a dispute over the purchase.

Here's what you need to know about bills of sale, the dangers of not signing one, and how a bill of sale template can help you complete this legal process.

What Is a Bill of Sale For a Car?

A bill of sale is a document that confirms a sale agreement. It’s a legally binding document that shows you’ve transferred ownership and the new owner is responsible for the vehicle.

When you sell a car privately, a bill of sale may be the only document you retain that proves you’ve transferred possession to a new owner.

While the specifics of a bill of sale can vary, here are some key features that yours should include as a proof of purchase:

Vehicle information, like make, model, and year of manufacture
Vehicle identification number
Current odometer reading
Buyer’s signature and name
Seller’s signature and name
Buyer’s address, city, state, and zip code
Date of sale
Purchase price
Terms and conditions
Notarization, if required by your state
There are other items that you could put on the bill of sale for added clarity. For example, some sellers include a more detailed description of the vehicle to avoid any confusion or disagreement about its current condition. Some also include the payment method and their own mailing address if the buyer needs to ask any questions or forward any information.

Other sellers choose to include more specific information about a warranty, or lack of warranty, and any financing included in the sale. Consider having your document notarized by a notary public to verify the buyer’s name and signature.

Think of these documents as official receipts for the private transaction. Signing the title is a legal requirement to transfer ownership, but you can’t refer to a signed title after you give the certificate of title to the new owner.

It’s also a way to confirm that you’re selling the vehicle “as is.” This means you aren’t giving the buyer any warranty of the condition. In the event that the vehicle has a major breakdown or some other unforeseen issue, a bill of sale helps protect you from being liable for the damages.

Be sure you verify the make, model, and other information on the bill of sale, as well as the odometer disclosure statement. Failure to do so could result in the penalty of perjury and jeopardize the sale agreement.
Bill Of Sale Template For A Sale Agreement

When a Bill of Sale Is Required

Some states require a bill of sale for any valid sale of a vehicle to a private party. Verify any state requirements with your local Department of Motor Vehicles or DMV. Some DMVs also require any bill of sale to be notarized.

Laws may change in your state, so be sure you’ve reviewed the latest laws. An online listing service can help you determine which documents are necessary for your location. This takes the stress out of contacting your local DMV and reviewing any recent changes to state or county laws.

Bills of sale are legally required in the following states:

Alabama
Arkansas
Colorado
Connecticut
Hawaii
Idaho
Maine
Nebraska
New York
Ohio
Rhode Island
South Dakota
Vermont
Washington
West Virginia
Wyoming
In many cases, a bill of sale is used to transfer ownership of a car, boat, or other vehicle. In some states, the bill of sale must be notarized in order to be considered valid. This means that a notary public must witness both parties signing the document.

Louisiana, Nebraska, Maryland, New Hampshire, West Virginia, and Montana all have this requirement. Even if your state doesn’t mandate a notarized bill of sale, it may still be in your best interest to create one.

A motor vehicle power of attorney form is a prior written authorization for another person to represent you in legal matters concerning your car. This could include things like buying or selling a car, transferring ownership, or making changes to the registration.

The person you appoint as your agent will have different levels of authority depending on what you specify in the power of attorney form.

For example, you could give your agent broad authority to handle all matters related to your motor vehicle, or you could limit their authority to a specific task. You should only appoint someone you trust to act in your best interests, as they will have a great deal of control over your motor vehicle.

Be sure to read the power of attorney form carefully before signing it, and make sure you understand all of the implications. If you have any questions about what kinds of authority you can give your agent, you should consult with an attorney who can provide legal advice.
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Benefits of a Bill of Sale Form

This document can still be beneficial even if you don’t live in a state that requires it. You can enjoy greater legal protection and convenient registration when you use a bill of sale form. It also can give you peace of mind, knowing that you’re clearly selling the vehicle in its current condition and not offering any warranties.

Where can you find a bill of sale? While you can create your own document or hire a lawyer to draft one for you, a bill of sale template is a convenient alternative. Use a bill of sale form for a free alternative that’s already set up for your state.

Dangers of Not Signing a Bill of Sale

Delay or failure to sign this legal document may cause significant issues for you and the new owner of your vehicle. Whether you’re selling on Craigslist or selling to a family member, not signing a bill of sale could result in a number of issues.

Without a Bill of Sale, the buyer may claim that they never received the car, or that it was damaged when they took possession. The seller may also be held liable for any loss or damage that occurs after the sale.

Don’t wait until after the sale is over to discover you need to meet the buyer again to fill out a bill of sale for legal title transfer in your state.

First, this legal document helps the new owner confirm the current state of the vehicle. You’ll be less likely to have any disagreements about the condition of the vehicle, its odometer reading, or other features of the sale when you have a signed bill of sale.

It helps the owner quickly fill out a registration form since most of the required information for vehicle registration is right on this document. This saves them time and helps them avoid stress as they head to a local DMV to have the vehicle title transferred and registered.

Second, a bill of sale helps you legally sell your personal property in many states. States that require this document may also have fines or restrictions if you attempt to sell a vehicle without the proper paperwork.

Finally, failure to sign a bill of sale can result in you or your insurance provider being at risk for any accidents, parking tickets, or other issues that the new owner is involved in. If you sell a car and the buyer doesn’t transfer the title and register the vehicle, then your registration is the only one on file for the vehicle. You’ll have to dispute any ticket or lawsuit and there isn’t a guarantee you’ll win.
Bill Of Sale Template For A Sale Agreement

Why Use an Electronic Bill of Sale Template?

Printing out a paper document and obtaining a signature from the buyer is a time-consuming process. You’ll spend your time finding the right agreement template and filling in the relevant information.

An electronic bill of sale, on the other hand, can be immediately shared with a buyer, who can then e-sign the document.

Sign Your Documents Electronically With PrivateAuto

PrivateAuto offers an electronic bill of sale template for simple signing and legal transactions. See how it works today as you prepare to list your vehicle or wrap up a private sale the right way.

Experience the PrivateAuto Advantage

Avoid scams, keep personal information private, and guarantee funds with PrivateAuto. Fast, convenient car transactions. Get started today.
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Steps for Selling Your Vehicle through PrivateAuto

PrivateAuto makes selling your used vehicle easy. The sales process consists of a few simple steps:

Gather necessary documentation

You’ll need your vehicle title and other paperwork discussed above. Have it handy, so you’re not scrambling to find it at the moment of completing a sale.
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Register on PrivateAuto and get verified**

To make PrivateAuto a safe place for everyone, we require email, phone, and driver’s license verification, including facial recognition. Get started here.

List your car

Easily create your PrivateAuto listing with our step-by-step guide. Bonus: we include a window brochure with a QR code scannable to your listing.

Set your terms
It’s your car, so you drive the deal! You can control where, when, and who you meet. Decide whether to accept only ID-verified buyers, or buyers with verified funds. Don’t waste your time with buyers who aren’t verified to your preference.

Vet incoming offers

Manage offers in one place with the ability to accept, reject, or counter offers within the app. Listing on multiple sites? Filter all communications through PrivateAuto by sharing your listing link on all platforms. Your personal info is protected: no more giving out your phone number or email address. All communication happens in our app.

Choose a buyer

When you find an offer you like, accept it and proceed to the next step with that buyer.

Schedule a test drive

The buyer will want to test drive your car. No more back and forth texts. You never have to give out your phone number. Rather, use our handy scheduling feature to coordinate a time and place for a test drive. (Oh, and you’ll be able to finalize the transaction instantly at the test drive location, FYI.)

E-sign documents

After the buyer is satisfied with your car and the two of you have agreed on a purchase price, you can easily e-sign the Bill of Sale within our app, from your phone. With our shared documents feature, you can easily locate the vehicle paperwork needed after the sale.

Get paid, instantly

Before PrivateAuto, receiving funds was the most stressful part of the entire selling process, especially for any used car sale over $5,000. There just aren’t a lot of good ways to move large amounts of money quickly and conveniently. Those days are over! Verify and receive funds instantaneously with PrivateAuto Pay, our innovative banking integration. Guaranteed funds for transactions large and small.

Transfer title

When you sell your vehicle, fill out the necessary information on the back of the title transfer document to transfer the title to the buyer.

License plates

In some states, you’ll remove your license plates, while in other states you’ll leave them on and let the buyer take them with the car. See our complete guide to vehicle license plates for more.

Cancel car insurance

You don’t want to pay for insurance on a car you no longer own, so be sure to remove the sold vehicle from your insurance plan.

Interested in buying a used car? Browse used vehicles for sale!

Sales Agreement FAQ


How do you write a sales agreement?

A Sales Agreement, sometimes called a Sales Contract or Purchase Agreement, defines the terms of a transaction between a buyer and a seller. This agreement sets forth the rights and obligations of both parties, including such things as the price of the item being sold, any warranties or guarantees that are being made, and when and how the item will be delivered.

Example of a Purchase Agreement template


How do you write an agreement between a buyer and a seller?


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