To write a bill of sale, put the full legal names and addresses of buyer and seller at the top, describe the item in enough detail that no one could confuse it with another (for a vehicle, that means year, make, model, color, body type, and VIN), state the purchase price in both numerals and words along with how it was paid, include an explicit sentence transferring ownership to the buyer, add the date, and have both parties sign. Everything else, including as-is language, odometer disclosures, witnesses, and notarization, builds on that core.
Bill of Sale vs. Title
Before you draft anything, know what the document does and doesn’t do. A bill of sale is a private record of the transaction between buyer and seller. A vehicle title is a government-issued certificate of ownership. The title transfers ownership; the bill of sale proves a sale occurred. For a vehicle transaction you typically need both: the seller signs over the title, and both parties sign the bill of sale. For older vehicles without titles, a bill of sale is sometimes the only documentation available, but confirm with your state motor vehicle agency before assuming it will be enough to register the vehicle.
Information to Gather Before You Draft
Pull everything together before you start writing. Hunting down a VIN mid-draft is how errors creep in.
- Full legal names and current addresses of both buyer and seller, exactly as they appear on government-issued ID. Nicknames and abbreviations cause problems at the DMV.
- A detailed item description. For vehicles: year, make, model, body type, color, and Vehicle Identification Number. For equipment: serial numbers and model numbers. For livestock or other goods: a description specific enough that the item couldn’t be confused with a similar one.
- The agreed purchase price, written both as a number and spelled out in words. If the two don’t match, most jurisdictions treat the written-out version as controlling.
- Payment method: cash, check, money order, electronic transfer, or a combination.
- The actual date the property changes hands, not the date you got around to drafting.
- For motor vehicles, the odometer reading at the time of transfer. Federal law requires the seller to disclose cumulative mileage.
What Goes in the Document
A bill of sale doesn’t need to be long, but it does need to be complete. Start with a clear heading reading “Bill of Sale.” Then identify both parties by full legal name and address.
Follow with the item description. For a vehicle, that means year, make, model, body type, color, and VIN. For other property, use serial numbers, model numbers, or physical descriptions that distinguish the specific item from others like it.
State the purchase price and how it was paid. Then add an explicit transfer-of-ownership statement along the lines of “the seller transfers all rights and interest in the described property to the buyer.” The language doesn’t need to be fancy, but it does need to be there. A document that describes the item and lists a price but never actually says ownership is being transferred is weaker than one that spells it out.
Put signature lines for both buyer and seller, plus the date of signing, at the bottom. If you plan to use witnesses or a notary, add lines for them too. Free online templates are fine as a starting structure, as long as you verify every field is filled in. A template with a blank VIN field is worse than no template at all.
Using an As-Is Clause
Most private sales include an as-is statement, meaning the buyer accepts the property in its current condition and the seller makes no promises about whether it works, how long it will last, or what shape it’s in. This language removes implied warranties, the unspoken guarantees that goods are fit for their ordinary purpose.
An as-is clause does not protect a seller from fraud. If you know the transmission is failing and tell the buyer the car runs perfectly, the as-is language won’t save you. Courts consistently hold that as-is disclaimers don’t override intentional misrepresentation or concealment of known defects. For buyers, an as-is clause is a signal to inspect thoroughly before signing. Once you’ve agreed to as-is terms, your legal options for defects you could have discovered on inspection shrink dramatically.
Odometer Disclosure for Vehicles
Federal law requires every person transferring ownership of a motor vehicle to provide the buyer with a written odometer disclosure.1Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles This isn’t optional, and a line on the bill of sale alone doesn’t satisfy it. The disclosure must appear on the title or an official reassignment document, include the seller’s certification that the mileage is accurate (or a statement that it’s unknown), and be signed by both parties.2eCFR. 49 CFR 580.5 – Disclosure of Odometer Information
The disclosure must include the odometer reading (not including tenths of miles), the date of transfer, both parties’ printed names and addresses, and the vehicle’s make, model, year, body type, and VIN.2eCFR. 49 CFR 580.5 – Disclosure of Odometer Information Providing false mileage information can result in fines and imprisonment.
There is an age-based exemption. Model year 2011 and newer vehicles require odometer disclosure for the first 20 years of the vehicle’s life. Model year 2010 and older vehicles follow the previous 10-year rule and are now exempt from federal odometer disclosure requirements.3National Highway Traffic Safety Administration. Consumer Alert – Changes to Odometer Disclosure Requirements Even for exempt vehicles, writing the mileage into the bill of sale is good practice for the buyer’s protection.
Check for Liens First
A lien on personal property means someone else, usually a bank or finance company, has a legal claim against it because the owner still owes money. If you buy a vehicle with an outstanding lien, the lienholder can repossess it from you even though you paid the seller in full and have a signed bill of sale. This is one of the most expensive mistakes buyers make in private sales.
For vehicles, you can check for liens and title issues through the National Motor Vehicle Title Information System (NMVTIS), a federal database maintained by the Department of Justice. Reports are available through approved data providers listed at VehicleHistory.gov.4Bureau of Justice Assistance. Research Vehicle History – VehicleHistory.gov A NMVTIS report won’t catch every possible encumbrance, but it will flag most title brands, salvage history, and reported liens. For non-vehicle property like equipment, buyers can search UCC filings through the secretary of state’s office in the state where the seller is located.
If the property does have a lien, the sale can still happen, but the lien needs to be paid off at or before closing. Some buyers pay the lienholder directly rather than handing the full amount to the seller, which eliminates the risk that the seller takes the money and never satisfies the debt. Document whatever arrangement you use in the bill of sale.
Signing, Witnesses, and Notarization
Both buyer and seller must sign. The signatures are what turn the document from a piece of paper with information on it into a record of mutual agreement. Use the same name that appears in the body of the document, and sign in ink if the document is physical.
Witnesses aren’t required in most situations, but having one or two disinterested people watch the signing and add their own signatures strengthens the document’s credibility if it’s ever challenged. For expensive property, the small inconvenience is worth it.
Notarization requirements vary by state. Some states require a notarized bill of sale for vehicle title transfers; others don’t require notarization at all. Even where it isn’t mandatory, notarization adds identity verification that makes it much harder for either party to later deny the transaction. Check your state motor vehicle agency’s website for your specific transaction. If you’re unsure, getting it notarized is the safer choice, and the fee is typically modest.
Gift Transfers and Zero-Dollar Sales
When property is transferred as a gift rather than sold, you still need documentation, especially for vehicles. The bill of sale should list the purchase price as $0 and note that the transfer is a gift. Some states require a specific gift affidavit in addition to or instead of a standard bill of sale, so check with your local motor vehicle agency before assuming a $0 bill of sale is enough.
Gift transfers carry tax implications that surprise people. Many states still charge sales or use tax on gifted vehicles, often based on the vehicle’s fair market value rather than the $0 stated price. Exemptions vary: some states waive the tax for transfers between immediate family members, others don’t. On the federal side, if the value of the gift exceeds the annual gift tax exclusion, $19,000 per recipient for 2026, the person giving the gift may need to file IRS Form 709, though no tax is typically owed until lifetime gifts exceed the much larger lifetime exemption amount.5Internal Revenue Service. Gifts and Inheritances
After You Sign
Both parties should walk away with a copy. The buyer keeps the original bill of sale along with the signed-over title (for titled property). The seller keeps a copy. Store these documents the way you’d store any important financial record. You may need them for tax reporting, insurance claims, or registration years later.
Buyer’s Next Steps
For vehicles, the immediate priority is registration and title transfer through your state motor vehicle agency. Most states impose a deadline, often between 10 and 30 days, and charge late fees if you miss it. Bring the signed title, bill of sale, proof of insurance, and a valid ID. You’ll also pay any applicable sales or use tax at this point. In private sales the buyer is almost always the party responsible for remitting this tax, typically calculated on the purchase price listed in the bill of sale.
Seller’s Next Steps
File a notice of transfer or release of liability with your state motor vehicle agency as soon as possible. This form is separate from the title transfer and officially puts the government on notice that you no longer own the vehicle. Until you file it, parking tickets, toll violations, traffic camera citations, and even accident liability tied to the vehicle can end up in your name. Some states impose deadlines as short as five days. The process usually takes just a few minutes online or by mail. Also confirm whether your state requires you to remove and return license plates or whether they stay with the vehicle.
Fixing Errors After the Fact
A transposed digit in the VIN, a misspelled name, or the wrong date can cause a title transfer to be rejected. How you fix it depends on what went wrong and when you catch it.
If both parties are still in contact, the simplest fix is to draft a new bill of sale with the corrected information and have both parties sign it. Destroy or clearly mark the old version as void. Don’t cross out and write over errors on the original. That makes the document look altered and can raise suspicion at the DMV or in court.
For errors on the vehicle title itself, contact your state motor vehicle agency. Most states have a process for title corrections that involves submitting the title, an explanation of the error, proof of the correct information, and a fee. Some states accept a separate correction affidavit; others require you to apply for a duplicate title. Odometer discrepancies need special attention. If the mileage on the title doesn’t match the bill of sale, resolve the inconsistency before attempting to register the vehicle. The longer you wait, the harder and more expensive the fix becomes.