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 private vehicle sales:

States That Require Notarization

Some states go further and require the bill of sale to be notarized — meaning signed in front of a notary public:

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.