How to Write a Bill of Sale for a Car (or Anything Else)

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A bill of sale is the receipt that protects both sides of a private sale — and writing one takes ten minutes. It needs five elements: buyer and seller names, an item description (VIN for a car), the price, the date, and both signatures. Louisiana, Montana, Nebraska, and West Virginia generally require notarization; Maryland does for vehicles. Here's the complete checklist, the as-is clause explained, and the mistakes that unwind sales.

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The five elements, exactly

ElementWhat to write
1. PartiesFull legal names as they appear on ID — "Jane A. Smith," not "Jane"
2. Item descriptionYear, make, model, and the full 17-character VIN (HIN for boats); for general goods, make/model/serial number
3. PriceAmount in numbers and in words — "Eleven thousand five hundred and 00/100 dollars" — the format clerks and banks expect
4. Date and locationCity and state of the sale; this fixes the date for title, tax, and liability
5. SignaturesBoth parties, ideally two originals — plus a witness or notary where your state requires one

For vehicles, add the odometer reading as a disclosure. Since the 2021 NHTSA rule, federal law requires odometer disclosure for vehicles 20 model years old or newer — model year 2011 and newer during its phase-in; older vehicles are exempt. Writing "98,240 miles, actual mileage to the best of my knowledge" on the document covers it.

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Which states require notarization?

Most states accept a plain signed bill of sale. The commonly cited exceptions:

StateRule
LouisianaNotarized bill of sale generally required for vehicle transfers
MarylandNotarized bill of sale required for vehicle purchases (MVA)
MontanaNotarized signature required
NebraskaNotarized bill of sale required for vehicle titles
West VirginiaNotarized bill of sale required for vehicle transfers

A few states (Ohio, notably) don't require a bill of sale at all — the title does the legal work — but write one anyway: it's your evidence of price, mileage, and condition if a dispute or a toll bill shows up six months later. Notarizing when it isn't required costs a few dollars and never hurts.

What "as-is" actually does

An as-is clause says the seller makes no warranties and the buyer accepts the item's condition, faults included. It defeats "you promised the transmission was fine" arguments. It does not defeat fraud: lying about mileage, hiding a salvage or flood title, or denying accident history are misrepresentations that can unwind the sale and invite lawsuits regardless of what the document says.

The defensive pattern for sellers: sell as-is AND disclose known defects in writing on the same page. "As-is; known issues: check-engine light P0420, right-front strut noise" is nearly bulletproof. The same document without the disclosure is an invitation to a small-claims date.

The mistakes that unwind car sales

  1. No VIN, or a wrong one. A bill of sale that doesn't identify the exact vehicle proves nothing. Copy the VIN from the dashboard plate, not the title, and compare both.
  2. Accepting a bill of sale in place of a title. The title transfers ownership. If the seller "lost" it, the fix is them applying for a duplicate before you pay — not a document promising the title exists.
  3. Price games. Writing $500 on an $11,500 car to dodge sales tax is tax fraud, some states penalize declared prices far below book value automatically, and it guts your own evidence if the deal goes wrong.
  4. One original. Both parties need signed copies. The buyer's goes to the DMV; the seller's proves the sale date when a red-light camera letter arrives in March.
  5. Skipping the lien search. The seller should warrant "free of liens and encumbrances" — and the buyer should run the VIN through a title-check service to confirm it.

After the signatures

The buyer's errands: title transfer and registration at the DMV (usually 10-30 days to do it without penalty), insurance bound before driving, and sales or use tax — the car sales tax calculator prices what your state collects on a private purchase. The seller's errands: file the notice of transfer or seller's report your state offers (it's what stops toll and liability mail), cancel or transfer the insurance, and keep the bill of sale copy forever.

Buying something with a branded history? A salvage title cuts resale value 20-40% even after repair — the salvage title value calculator puts a number on it, and the diminished value claim calculator covers the related insurance angle after an accident.

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Frequently Asked Questions

What does a bill of sale need to include?

Five elements make it valid: the buyer and seller's full legal names, a description of the item (for a car: year, make, model, and 17-character VIN), the purchase price, the date of sale, and both signatures. For vehicles add the odometer reading — federal law has required odometer disclosure for vehicles 20 model years old or newer since the 2021 NHTSA rule (model year 2011 and newer during its phase-in).

Does a bill of sale need to be notarized?

In most states, no — a signed document is enough. Louisiana, Montana, Nebraska, and West Virginia generally require notarization, and Maryland requires it for vehicle purchases. Rules change and vary by item type, so confirm with your DMV before the sale rather than after.

Can I write my own bill of sale, or do I need a special form?

You can write your own — a bill of sale is a contract, and states don't mandate a particular form. Some DMVs publish optional templates, which are worth using if your state offers one, but a complete handwritten document with all five elements plus an as-is clause is legally enforceable everywhere.

Who keeps the bill of sale?

Both parties. The buyer needs it to title and register the vehicle and to document what was represented; the seller keeps it as proof of the transfer date and mileage — protection against parking tickets, tolls, and liability that arrive after the sale. Sign two originals or make a copy before handing over the keys.

Does a bill of sale prove ownership of a car?

No. The title is the ownership document; the bill of sale documents the transaction between two named people on a date for a price. Buying a car with only a bill of sale and no title is the classic private-sale trap — you may end up unable to register a car that isn't legally yours.

Does 'as-is' protect the seller from everything?

It protects against warranty claims about condition, not fraud. A seller who lies about mileage, hides a salvage or flood title, or misstates accident history has made misrepresentations that can unwind the sale regardless of the as-is clause. The safest pattern: sell as-is AND disclose every known defect in writing.

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This guide is general information, not legal advice. Requirements vary by state and change over time — confirm specifics with your DMV or a local attorney.