California Bill of Sale Form – Download Free Template
Buying or selling a vehicle or vessel in California? Protect your transaction with a bill of sale. The bill of sale provides a legal record of the exchange and protects both parties from potential disputes.
What is a California Bill of Sale?
Think of it as a bill: when you buy food at a restaurant, you will get a piece of paper that notes all your orders. The function is pretty much the same: recording the transaction. However, the difference lies in the legal protection. When you buy a vehicle or vessel in California, get the bill of sale, as it will help you when you want to register the vehicle (or vessel) under your name.
In California, the bill of sale is especially useful when:
- Buying or selling a used car, truck, boat, or trailer privately
- The title is missing, and ownership needs additional verification
- A seller wants proof that they are no longer responsible for the vehicle
- A buyer needs documentation for registration or insurance purposes
Whether you are a buyer or seller, having a bill of sale saves you from future headaches that might occur due to unclear transfer of ownership documentation.
Why Do You Need a California Bill of Sale?
When selling a vehicle or vessel in California, the seller should have a copy of the bill of sale alongside the buyer.
For Seller
- Proof of sale: It documents that you are no longer responsible for the vehicle
- Liability protection: If the buyer fails to register the vehicle, the Bill of Sale shows you are not liable
- Title issues: If the buyer loses the title or there’s a dispute, this document confirms the sale
- Tax purposes: To report the sale for tax records
Additionally, sellers should always file a Notice of Transfer and Release of Liability (NRL) with the California DMV to officially notify the state of the sale.
For Buyers
- Proof of Ownership: It provides clear, written proof that you legally purchased the vehicle or vessel, which is necessary for registration with the California DMV.
- Official Purchasing Record: It serves as a comprehensive record of the transaction details, including the exact sale price, the date, and the item’s condition at the time of purchase.
- Protection from Fraud: The signed document protects you from potential fraud or disputes over ownership after you complete the purchase.
- Warranty Reference (If Applicable): If the item was sold with any warranty or guarantee, the bill of sale acts as a reference for those terms.
What Should Be Written on a California Bill of Sale?
A California bill of sale should include the seller, buyer, and vehicle or vessel details to properly document the sale. According to the California DMV, you should find these on a bill of sale:
Seller and buyer details
Names, addresses, and signatures
Vehicle/Vessel description
Make, model, year, color, and VIN or hull ID
Sale date
The exact date ownership was transferred
Purchase price
The agreed amount paid for the vehicle or boat
All these details in writing can prevent misunderstandings and protect both parties from legal issues.
Bill of Sale Types in California
California uses many bills of sale depending on the item being sold, including a very specific form for vehicles and boats (REG 135), but general bills of sale are enough for personal property that is mostly common.
Types of Bill of Sale that are Common
- California Motor Vehicle/Boat Bill of Sale (Form REG 135): This form is specific to moving the ownership of a motorized vehicle or vessel within California.
- General Bill of Sale: This document is used for common items such as electronic items or appliances, and it is a simple document for a straightforward, unconditional transfer of ownership.
- Absolute Bill of Sale: This documents a whole transfer of property with no attached strings. The sale is final, and the seller is not responsible anymore for the item.
- Conditional Bill of Sale: This is used when the final sale depends on specific terms that must be fully met. A very common example is a loan, where the ownership transfer is conditional on the buyer making the loan repayment.
- Quitclaim Bill of Sale: This type of document is used when the seller is not guaranteeing they have a clear title or when they want to transfer the ownership without giving any warranty about their right to sell the property. It has having similarity to a quitclaim deed.
- Firearms: A very specific bill of sale is used for the transfer of firearm ownership because this needs adherence to specific legal requirements.
- Horses: It is often the case that a bill of sale is required for the selling and registration of horses in California.
How to Register a Vehicle in California
If you are a new resident, you must register your car within 20 days of establishing residency. The process requires several key documents and inspections.
Necessary Documents
You must have the following ready for registration at the DMV:
- Application for Title or Registration (REG 343): This completed form is needed for all new registrations.
- Vehicle Title: The California Certificate of Title (or the out-of-state title for vehicles brought into the state). For private sales, the seller must have signed the title.
- Proof of Insurance: A valid auto insurance policy that meets California’s minimum requirements.
- Driver’s License: Your CA driver’s license or ID number (or your out-of-state number).
- Fees and Taxes: Payment for registration fees and any applicable use tax.
Important Steps and Inspections
- Get a Smog Check: Most vehicles must pass a smog inspection at a state-certified station. (Exceptions exist, such as for gasoline-powered vehicles 1975 or older).
- Complete VIN Verification: This is required for all vehicles coming from out-of-state and must be done at a DMV office or by a licensed verifier.
- Establish Residency: New residents need to ensure they meet the 20-day registration deadline after moving.
- Visit the DMV: Bring all your required documents to the California Department of Motor Vehicles (DMV) to submit your application, pay the fees, and receive your new registration card, stickers, and license plates..
California VIN Check – Verify Vehicle History Before You Buy
If you plan to buy a used vehicle in California, make sure you check the VIN and secure the vehicle history report to examine the vehicle’s specifications and its records, like accidents, auctions, or recalls.
Mileage History
Title Brand
Ownership History
Warranty Status
Sales History
Salvage Title
Usage History
Repair Cost
Auction History
Hail Damage
Ownership Duration
Recalls History
Accident History
Flood Damage
Lien & Loans
Maintenance Schedule
Get a Vehicle Bill of Sale by State
Each state has its own requirements for an auto bill of sale. Click below to find the template for your state!
California Bill of Sale FAQs
Does a California bill of sale need to be notarized?
No, the California DMV does not require notarization for a bill of sale. It can be helpful for high-value or out-of-state sales, as notarization adds security and helps prevent fraud and legal disputes.
Can a piece of paper be a bill of sale?
Yes, any piece of paper can be a valid bill of sale if it includes all legally required details, such as the contact information, item description, price, and date. It must also be signed by both the buyer and the seller.
Can a bill of sale be electronic?
Yes, an electronic bill of sale is valid, and electronic signatures are legally binding. These online documents are convenient for sharing and signing, but you must check local laws, especially if notarization is needed.
Can I write my own bill of sale in California?
Yes, you can write/create the bill of sale by using templates or an online form. Remember to write down all the necessary information and have both parties sign the bill of sale.
What are the common mistakes in a bill of sale?
Missing vehicle details: Forgetting to include important information like the VIN, make, model, or year.
Unclear terms: Not clearly stating the sale price, payment method, or whether the vehicle is sold “as is.”
Incomplete buyer or seller info: Leaving out names, addresses, or contact details can cause legal issues later.
No signatures or notarization: Without proper signatures, the document might not be legally valid.
Ignoring liability statements: Not adding a disclaimer can make the seller responsible for future problems with the vehicle.
Can you use your own bill of sale?
Yes, in many states you can write your own bill of sale, as long as it includes all the details required by local laws. However, some states require you to use an official form provided by the DMV.
Remember, a bill of sale serves as proof that a transaction took place between a buyer and a seller, so it’s important to make sure it’s complete and accurate.
Can I get a title with a bill of sale in California?
This is because state laws can differ about car title ownership. For one example, in the state of California, you are required to show your bill of sale for registering the vehicle or for having the title transferred.
