Do I Need a Bill of Sale?

Whether a bill of sale is legally required depends on your state, the type of property being sold, and the value of the transaction. Here's a complete breakdown.

The Short Answer

Even in states where a bill of sale isn't legally required, you should always create one. It protects both the buyer and seller by documenting the transaction details, sale price, and condition of the item. Without one, you have no written proof of what was agreed upon.

States That Require a Bill of Sale

The following states require a bill of sale for an ordinary private vehicle sale:

States That Require a Bill of Sale Only in Some Situations

In these states a bill of sale is required only in certain cases — for example, when the sale price is not written on the title. Open your state page for the exact situations:

States Where a Notary Is Part of the Transfer

In these states an ordinary private sale includes a notarized document — usually the title assignment rather than the bill of sale. The label shows which one:

When You Definitely Need a Bill of Sale

• Vehicle sales: Required by most state DMVs to transfer the title and calculate sales tax.
• Boat and watercraft: Required for registration with your state's boating agency.
• Firearm transfers: Provides proof of legal transfer. Required in many states.
• Horse and livestock: Common practice and often required for breed registrations.
• High-value items: Any transaction over $500 should have a bill of sale for liability protection.

What Should a Bill of Sale Include?

1. Full legal names and addresses of buyer and seller
2. Description of the item (for vehicles: year, make, model, VIN)
3. Sale price and payment method
4. Date of sale
5. Condition and warranty status (as-is or with warranty)
6. Signatures of both parties
7. Notary seal (if required by your state)
8. Witness signatures (if required by your state)

What Happens If You Don't Have One?

Without a bill of sale, you risk disputes over the sale price, difficulty registering the vehicle at the DMV, potential liability for the seller if the buyer doesn't transfer the title, and no legal recourse if either party disputes the terms of the sale.