A solid bill of sale turns a handshake into proof; protecting both sides if anything is questioned later. Below I’ll show you exactly what to include, common mistakes to avoid, and give you a free template you can paste into your document editor and use today.
Key takeaways (at a glance)
| Question | Short answer |
|---|---|
| What is a bill of sale? | A written record of ownership transfer (like a receipt) with key details about the item, parties, price, date, and signatures. It complements—but doesn’t replace—the title for vehicles. LegalZoomNY DMV |
| When is it required? | Often required (or strongly recommended) for vehicles, boats, trailers, and other high-value property; some DMVs provide their own form. NY DMV |
| What must it include? | Buyer/seller info, item description with identifying numbers (e.g., VIN/HIN/serial), price and taxes, payment terms, date/time, location, disclosures (e.g., odometer), “as-is” or warranties, signatures. NHTSA |
| Do I need notarization? | Sometimes. Examples: West Virginia requires a notarized vehicle bill of sale; Louisiana and Montana require notarized title paperwork in private-party sales. Check your state DMV. WV DOTPowerDMSsosmt.gov |
| Are e-signatures OK? | Yes—U.S. federal law recognizes most e-signatures and electronic records for commerce (with exceptions). NCUA |
| Extra for vehicles | Federal law requires odometer disclosure for most vehicles for the first 20 model years (MY 2011+). Include the mileage and statement. NHTSA |
| Boats (documented) | For U.S. Coast Guard–documented vessels, use form CG-1340 for the transfer. United States Coast Guard |
What is a bill of sale (and why it matters)
Think of it as a transaction snapshot: who sold what, to whom, for how much, under which conditions, and when. It’s your best evidence if there’s a dispute about condition, payment, or ownership—and it signals to DMVs and insurers that the parties agreed to the terms. It records the transfer; the title (for vehicles/boats) is what the state updates to show the new owner. LegalZoomNY DMV
The 10 essentials every bill of sale should include
Buyer & seller: Legal names, addresses, and contact info.
Item description: Make, model, year, color, and unique identifiers (VIN/HIN/serial).
Condition & disclosures: “As-is” or any warranties; known defects; liens/lender info if applicable.
Odometer statement (vehicles): Mileage and disclosure language to satisfy federal rules for MY 2011+ up to 20 years. NHTSA
Price & taxes: Purchase price, deposits, trade-ins, and who pays taxes/fees.
Payment terms: Method (cashier’s check, wire, etc.) and timing (on delivery, after inspection).
Contingencies: Smog/inspection, lien release, clear title by a certain date.
Date, time, and location of transfer.
Signatures of both parties (and notary/witness if required by your state). See state notes below. WV DOTPowerDMS
Acknowledgments: Statement that the seller is the lawful owner and has the right to sell.
Pro tip: If you’re selling a car, take photos of the odometer and condition at handoff, then attach them to your bill of sale packet. It’s simple protection if something is disputed later.
State rules you should know (quick guide)
Notarization: Requirements vary. West Virginia requires the official DMV bill of sale (DMV-7-TR) to be notarized. Louisiana private-party vehicle sales require notarized paperwork (title/bill of sale as applicable). Montana requires notarized title signatures; some bill-of-sale notarization scenarios apply only in specific processes. Always check your DMV. WV DOTPowerDMSsosmt.gov
DMV-issued forms: Many states offer a downloadable bill of sale; using the official form can speed processing. NY DMV
Odometer disclosure: For MY 2011+ vehicles, disclosure is required for the first 20 model years (not just 10 as in the past). Include mileage. NHTSA
Boats (documented with USCG): Use CG-1340 Bill of Sale to transfer a U.S. Coast Guard–documented vessel. United States Coast Guard
Can I sign electronically?
Yes. Under the U.S. E-SIGN Act, electronic signatures and records are generally valid for transactions in or affecting interstate commerce (with some exceptions, like certain real estate/estate documents, and subject to consent and retention rules). Many DMVs still want ink signatures on their own forms, so verify local rules. NCUA
Step-by-step: How to write a bill of sale (fast)
Collect proofs: IDs, title (if applicable), lien payoff letter, and inspection/smog reports.
Describe precisely: Use the exact VIN/HIN/serial; list accessories and extras included (e.g., winter tires, trailer).
State the condition: If truly “as-is,” say so plainly and note any known issues.
Handle disclosures: Add odometer mileage and disclosure language for vehicles. NHTSA
Set payment terms: Method, due date, any deposit, and whether funds must clear before delivery.
Add contingencies: Title must be clear; buyer has X hours to inspect; any emissions test obligations.
Sign & notarize (if required): Meet at a bank/DMV for notary when your state requires it. WV DOT
Exchange copies & follow through: Give buyer the signed bill of sale and keys; you file any required “notice of sale/transfer” and remove your plates/insurance per your state. NY DMV
Free Bill of Sale template (copy & paste)
Title: Bill of Sale
Date of Sale: [MM/DD/YYYY] Time: [HH:MM] Location (City/State): [City, State]
Seller
Name: [Seller Full Legal Name]
Address: [Street, City, State, ZIP]
Phone/Email: [Contact]
Buyer
Name: [Buyer Full Legal Name]
Address: [Street, City, State, ZIP]
Phone/Email: [Contact]
Property Sold
Item: [e.g., 2015 Honda Accord EX]
Identifier(s): [VIN/HIN/Serial]
Year/Make/Model/Color: [Details]
Included Accessories: [List]
Sale Terms
Purchase Price: $[Amount] (USD)
Payment Method: [e.g., cashier’s check]
Taxes/Fees: [Party responsible]
Delivery: [Date/Location]
Condition & Disclosures
The property is sold [AS-IS / WITH THE FOLLOWING LIMITED WARRANTY: …].
Known Defects (if any): [List or “None known”].
Liens: [None / Describe and attach lien release].
Odometer (vehicles only): I, the seller, certify the odometer reads [mileage] miles and [to the best of my knowledge it reflects/does not reflect] the actual mileage. (Include state/federal mileage form if required.) NHTSA
Acknowledgments
Seller affirms lawful ownership and the right to sell. Buyer acknowledges receipt, has had the opportunity to inspect, and accepts the terms above.
Signatures
Seller Signature: ______________________ Date: __________
Buyer Signature: ______________________ Date: __________
Notary/Witness (if required by state)
State of ______, County of ______, subscribed and sworn before me on __________ by ____________________ (seller) and ____________________ (buyer).
Notary/Witness Name & Signature: ____________________ Commission Expires: __________
Vehicle-specific add-ons (recommended)
Title handoff: Sign the title and match names exactly; both owners sign if the title shows “AND.” Your DMV page covers the mechanics. NY DMV
Notice of sale/transfer: File promptly so tickets/tolls after the sale don’t land on you. NY DMV
Odometer disclosure: Attach your state’s form or include the required language in the bill of sale for MY 2011+ up to 20 years. NHTSA
Boat & trailer notes
State-titled boats/trailers: Use your state’s bill of sale and title processes.
USCG-documented vessels: Use Form CG-1340 to transfer ownership. Attach your general bill of sale as a supplement if you’re also transferring gear/trailer separately. United States Coast Guard
Real-life example
I advise sellers to accompany the buyer to the DMV (or at least complete the state’s notice of transfer) the same day. One reader sold a truck “as-is” with a clear bill of sale and filed the notice of sale immediately; when the buyer delayed title transfer and incurred tolls, the DMV record and bill of sale kept the tickets off the seller’s record. NY DMV
Common mistakes that cause headaches
Skipping the VIN/HIN/serial or writing it incorrectly.
Forgetting the odometer statement for applicable vehicles. NHTSA
Not clarifying as-is vs. limited warranty.
Leaving liens undocumented (or failing to attach the lien release).
Missing a required notary or using the wrong state form. (E.g., WV requires notarized DMV-7-TR.) WV DOT
FAQs
Is a bill of sale the same as a title?
No. The bill of sale records the deal; the title is the government’s record of ownership. You’ll typically need both for a vehicle sale. NY DMV
Do I need a notary?
Sometimes. West Virginia requires a notarized vehicle bill of sale; Louisiana and Montana require notarized title signatures in private-party sales. Check your state DMV page. WV DOTPowerDMSsosmt.gov
Can we sign electronically?
Yes, generally—thanks to the E-SIGN Act—though some DMVs still require wet signatures on their forms. NCUA
What if I’m selling a U.S. Coast Guard–documented boat?
Use CG-1340 Bill of Sale for the vessel transfer. United States Coast Guard
Final thoughts
A tight, complete bill of sale is cheap insurance: it proves what both sides agreed to, streamlines title/registration, and protects you long after the keys change hands. Use the template, add your state’s required forms, and you’ll avoid almost every post-sale headache.
Sources
LegalZoom — What Is a Bill of Sale? LegalZoom
NY DMV — Buy, Sell, or Transfer Vehicle Ownership (state process and “proof of sale”) NY DMV
NHTSA — Changes to Odometer Disclosure Requirements (20-year rule) NHTSA
NCUA — E-SIGN Act overview (validity of electronic signatures) NCUA
WV DMV — Title services page (notarized WV bill of sale) WV DOT
Louisiana OMV guidance (private-party sales notarization) PowerDMS
Montana Secretary of State — Notarizing vehicle titles (title signatures notarized) sosmt.gov
U.S. Coast Guard — CG-1340 Bill of Sale (documented vessels) United States Coast Guard
Disclaimer: This article provides general information and a sample template for educational purposes and is not legal advice. State and local rules differ—always check your DMV or consult a qualified professional for your situation.