WHAT IS A BILL OF SALE USED FOR?
The BILL OF SALE FOR AUTOMOBILE is used to document the sale of a vehicle. It is used by both the seller and buyer during their sale transaction. It is NOT a substitute for the documents required by the Department of Motor Vehicles (or other governmental agency depending on your jurisdiction) to transfer title to a vehicle.


WHY SHOULD I USE A BILL OF SALE?
A bill of sale provides evidence that a transaction took place. As the buyer, you will want proof that you have paid for the car and that you are entitled to its ownership. A bill of sale will provide such proof. Additionally, in some circumstances, it may be required as a condition to transferring title. As the seller, you should retain proof of when, to whom, and for how much you sold the vehicle. The bill of sale will provide that proof.


IS A BILL OF SALE ENOUGH TO SELL/BUY A VEHICLE?

NO. As the seller, you must

  1. sign and provide to the buyer the certificate of ownership/title, AND
  2. Provide the DMV (or other governmental agency depending on your jurisdiction) a form that will release you of liability from ownership of the vehicle. The exact name of this form is different in different jurisdictions, but you can follow the link below to find your jurisdiction.
As the buyer, you must
  1. Make sure that the seller signs and provides you with the certificate of ownership/title, AND
  2. Register the vehicle with the DMV or governmental agency of your jurisdiction.
For example, if someone in California is selling their vehicle to someone in Nevada, then the seller must provide the certificate of ownership/title to the buyer and comply with California DMV requirements to get the car out of his name. The buyer must make sure to get the certificate of ownership/title from the seller and comply with Nevada DMV requirements to put the car in his name.

To find the DMV for your jurisdiction, click here.


WHERE DO I REPORT ODOMETER MILEAGE?

While the exact form is different from jurisdiction to jurisdiction, every DMV requires you to report odometer mileage on some mandated form. Therefore, in addition to the bill of sale and certificate of ownership/title, you must follow your jurisdiction's laws for reporting odometer mileage. To find the DMV for your jurisdiction, click here.


DOES THE SALES PRICE INCLUDE TAX?
The bill of sale prepared using this website does NOT include in its statement of price any taxes that may be required upon sale. You must check your local jurisdiction for any taxes that you may owe for buying or selling a vehicle.


WHERE DO I FIND MY VEHICLE IDENTIFICATION NUMBER?
Every vehicle has an identification number that can be found on the driver's side bottom corner of the windshield. You can also find this number on your registration certificate. This number is unique for every vehicle and unambiguously identifies the vehicle in question. Therefore, it should be included in a properly drafted bill of sale.


WHAT IS A LIENHOLDER?

A lienholder is someone that has a security interest in your vehicle. Most commonly, this is the bank you owe money to for your car. Thus, if you financed the purchase of your vehicle through ABC Bank, then ABC Bank would be the lienholder/legal owner and would possess the certificate of ownership/title. When you pay off your car loan, ABC Bank will sign the certificate of ownership/title and send it to you.


WHAT IS WARRANTY OF TITLE?

Warranty of title has nothing to do with the vehicle's physical or mechanical condition. Instead, it is a warranty by the seller that he/she lawfully owns the car, and can therefore legally sell it.

A bill of sale prepared using the Intelligent Questionnaire for Bill of Sale for Automobile will contain a warranty of title by the seller. If the vehicle has a lien against it, which also means the legal owner is another party, then the bill of sale will reflect this fact and the warranty will be limited accordingly. Furthermore, the warranty of title will include an indemnification clause. The indemnification clause makes the seller liable to defend the buyer's title against claims to the vehicle by other people, except for any legal owners noted in the bill of sale.


WHAT WARRANTY IS THE SELLER PROVIDING THE BUYER?
A bill of sale prepared using the Intelligent Questionnaire for Bill of Sale for Automobile provides NO warranty regarding the vehicle's condition. Even if the manufacturer's warranty is still in effect, the seller is not in a position to warrant that the manufacturer will honor it. Furthermore, most sellers are not in a position to promise their buyers that the vehicle will not have problems for a period of time after the sale. Therefore, it is not common for the seller to provide a warranty for the vehicle's condition. However, if you have a unique situation and think you need to add a warranty to the bill of sale, DO NOT use this site to prepare your bill of sale.


THINGS TO CONSIDER

DMV DOCUMENTS
The bill of sale on this website does NOT provide a substitute for any documents provided and required by the DMV (or other governmental agency) of your jurisdiction. Instead, this bill of sale is intended to supplement those documents and provide additional proof regarding your transaction for your own records. Make sure you read your DMV's information to understand the requirements of buying/selling a vehicle. To find the DMV for your jurisdiction, click here.


WHAT IF THE VEHICLE IS NOT PAID OFF?
If the vehicle is not paid off, then most likely the seller is the registered owner, but not the legal owner. In such case, the seller will not be in possession of the pink slip and will not be able to endorse and deliver it to the buyer. A bill of sale showing that the seller received the purchase price will not prevent a finance company from repossessing the car if payments are not made. Therefore, the buyer should beware and should make arrangements to have the legal owner's lien satisfied. One possibility is the use of an escrow service to consummate the transaction.


LEGAL DISCLAIMER
By visiting and using this website, you agree to our Terms and Conditions.

The material above is NOT a complete explanation of the law regarding the form's subject matter -- it only provides specific legal information regarding the associated form. It is not intended to provide information outside the scope of the associated form. It is intended to explain only certain legal concepts in simple terms in order to help the reader understand what the form is for and how it's generally used.

Also, the above information is not legal advice. It is GENERAL legal information that merely states the law. If you need legal advice about your own particular situation, you must hire an attorney that can listen and apply the law to your specific facts. Online Self-help Legal Tool for California Forms cannot and does not practice law and cannot help you with your individual problem.

Also, the foregoing information and the form related hereto pertain only to California law, unless indicated otherwise at the top of the corresponding . This website does not have information regarding federal law or the laws of other states.