How to Write a Bill of Sale: Step-by-Step Guide

A bill of sale doesn't need to be complicated — but a complete one covers six specific things, and a missing one can hold up a title transfer. This guide shows you exactly what to include, how to handle state-specific requirements, and the mistakes that get the most bills of sale rejected.

What Goes on a Bill of Sale — The Six Core Fields

Whatever you're selling, a complete bill of sale usually includes these six elements. Your state may add its own rules or form on top.

1. Full legal names and addresses of both parties

Write the seller's and buyer's names exactly as they appear on their government-issued ID. "Mike Johnson" on the bill of sale and "Michael R. Johnson" on the driver's license is a mismatch that can delay a title transfer. Include street address, city, state, and ZIP for both parties. Phone numbers are optional but useful.

2. A complete description of the item being sold

For vehicles: year, make, model, body style, color, and the full 17-character VIN. Copy the VIN directly from the vehicle title — not from the dashboard plate or what you remember — because the DMV will match it character by character. Include the odometer reading.

For boats: the Hull Identification Number (HIN), vessel length, hull material, and engine type. For trailers: VIN, GVWR (gross vehicle weight rating), and trailer type. For other personal property: brand, model, serial number, condition, and any identifying features.

3. Odometer reading at time of sale (model year 2011 and newer)

Federal law — 49 CFR §580, the Federal Odometer Act — requires a written odometer disclosure for motor vehicles of model year 2011 or newer. Model year 2010 and older vehicles are exempt, and from 2031 each later model year drops out 20 years after January 1 of its model year; vehicles over 16,000 lb gross vehicle weight rating are exempt too. The disclosure must state the exact mileage, whether the reading is accurate, and whether the odometer has rolled over or been replaced. Many generic bill of sale templates online were written before the 2021 change — if the form you're using doesn't have a clear odometer field with an accuracy statement, it may fail at the DMV for a model-year-2011-or-newer vehicle.

4. Sale price in dollars

Write the actual sale price. Some buyers ask sellers to write a lower number to reduce the sales tax they owe at registration. This is tax fraud — both parties can face penalties, and it often backfires anyway. Texas and Massachusetts tax the buyer on the higher of the price or a book value (Texas calls it "standard presumptive value"), and North Carolina and Georgia base the tax on the vehicle's value rather than the stated price.

If the vehicle is a gift, write "$0 — gift to [relationship, e.g. daughter]" or "$1 and other good consideration." Many states have a lower gift transfer tax rate for immediate family that requires this documentation.

5. Date of sale

The date of sale starts the clock on the buyer's title transfer deadline — which ranges from 2 business days (Wisconsin, if the vehicle will be driven) to 60 days in some US states — and several states, such as Utah, set no fixed day count. It also establishes when the seller's liability for the vehicle ended. If the buyer is ticketed or causes an accident after the sale and before transferring the title, the seller needs this date to prove the vehicle was no longer in their possession.

6. Dated signatures of both buyer and seller

Both parties sign. Both parties date their signatures. Print names legibly next to signatures. If your state requires notarization (confirmed cases include Louisiana, West Virginia when the price is well below book value, title assignments in Kentucky, North Carolina, Ohio, Pennsylvania and Wyoming, and in Oklahoma a paper title's assignment or Form 718 for an electronic title — check your state page), do not sign the document before reaching the notary — they must witness the actual signing.

State-Specific Requirements

The six fields above are the common core. Some states add requirements on top.

States with their own official DMV forms

A handful of states have official forms that replace or supplement a generic bill of sale. Using only a generic form in these states can cause delays:

Even in these states, a detailed generic bill of sale is worth creating alongside the official form — it contains more information and is your best protection in a dispute.

States that require notarization

Louisiana (one notarized document: bill of sale, invoice or title assignment), West Virginia (only when the price is well below book value) and North Dakota (only its SFN 2888 form, used when no title can be provided) attach notarization to the bill of sale; Kentucky, North Carolina (NC titles), Ohio, Pennsylvania and Wyoming attach it to the title assignment instead, and Oklahoma notarizes either a paper title's assignment or Form 718 for an electronic title. Montana, often listed as a notary state, requires none for an ordinary private sale. Narrower cases exist too: Honolulu (Hawaii) requires a notarized bill of sale when the recorded owner has not released the title; Arizona’s Form 38-1306, used instead of the signed title, must be notarized or acknowledged by an MVD agent; Maryland used a notarized bill of sale for some below-book-value sales until September 30, 2026; and Washington requires the buyer’s title application to be notarized unless it is signed in front of a vehicle licensing agent. Check your state page for the current rule. Your nearest bank branch, UPS Store, or FedEx Office can notarize for $5–$15. Do not sign the document beforehand — the notary must witness the signature.

Witnesses

A witness is not one of the state rules we track for a private vehicle sale. If you want extra proof of the signing anyway, add a signature and printed-name line for a witness who is not part of the sale, and check your state page for the rules that do apply.

How to Write an As-Is Bill of Sale

The vast majority of private vehicle sales are "as-is" — the buyer accepts the vehicle in whatever condition it's in, with no warranty from the seller. Including a clear as-is clause protects you from post-sale complaints about mechanical problems. The language should read something like:

The above-described vehicle is sold AS-IS, in its present condition, with no warranty expressed or implied. The buyer has had the opportunity to inspect the vehicle and accepts it in its current condition.

Two important limits: as-is language does not protect a seller who actively concealed a known defect, and it does not override a seller's false statements about the vehicle's condition. If you know the transmission is failing, disclose it in writing — the as-is clause covers what the buyer could have found through normal inspection, not what you hid from them.

Common Mistakes That Get Bills of Sale Rejected

• Wrong or transposed VIN. Copy it from the title. Verify character by character. One wrong digit causes a rejection.
• Missing odometer disclosure for a model-year-2011-or-newer vehicle. Federal law requires it. Many generic templates skip it or use the outdated 10-year threshold. If the vehicle is model year 2011 or newer and your form has no odometer field, expect trouble at the counter.
• Artificially low sale price. Taxes are owed on the real price. States with presumptive value rules will assess tax on fair market value regardless.
• Only one signature. Both buyer and seller must sign. An unsigned bill of sale has no legal effect.
• Signing before the notary in a notarization-required state. If the notary doesn't witness the signing, the notarization is invalid. Sign at the notary's desk.
• Handwriting that can't be read. Clerks reject documents where the VIN, price, or odometer reading is ambiguous. If any field is unclear, reprint and start over.
• Using a form that doesn't match your state's requirements. A form downloaded from a random site may be missing required fields for your state or use outdated language. State-specific generators (like this one) include the right fields automatically.

Buyer Protections to Include

A well-written bill of sale protects the buyer as well as the seller. If you're the buyer, make sure the document includes:

• A statement that the seller has the legal right to sell the vehicle (i.e., they own it outright or have the lienholder's authorization)
• Disclosure of any known liens or outstanding loans — a vehicle can be repossessed after a private sale if the seller had an unpaid loan
• The seller's representation that the odometer reading is accurate (or a disclosure that it is not)
• Any representations the seller made about the vehicle's condition — write down verbally promised details like "new brakes in January 2026" so they are part of the contract

Step-by-Step Summary

1. Gather information. Have the title in hand, both parties' IDs, and the vehicle's current odometer reading.
2. Fill in all six core fields. Names and addresses, vehicle description with full VIN, odometer reading, sale price, date of sale.
3. Add state-specific language. As-is clause, notarization block if required, any state-mandated disclosures.
4. Print two copies. Both parties sign both copies. If notarization is required, go to the notary and sign there.
5. Complete the title transfer. Seller signs the back of the title. Buyer takes the signed title, bill of sale, proof of insurance, and payment to the DMV within the state deadline.
6. File seller's notice. In states like Texas (VTR-346), California, and Florida, the seller should file an online notice of sale to officially record that they no longer own the vehicle.

Frequently Asked Questions