California Bill of Sale

If you are purchasing or selling a car in California, or if you want to register an automobile you bought from a private seller, you'll need a bill of sale. Buyers and sellers of other valuable personal goods, such as boats or firearms, may benefit from a bill of sale. Find out more about what a bill of sale is and how to make one.

Requirements in a Bill of Sale in California

You can either download a sample bill of sale from the California DMV website or construct your own if you buy or sell an automobile in California. If you decide to write your bill of sale, make sure to include the following details:

Vehicle Identification Number (VIN)

The VIN of the vehicle you're selling must be provided. It's a long string of letters and numbers that can be found in a variety of locations:

• Your registration
• Insurance card,
• Vehicle's title
• Between the bottom of the windshield and the dashboard or on the body inside the door frame.

Car Details

Check the registration and title, as these will provide you with a detailed description of your vehicle. It's also beneficial to understand how to read a VIN, as this will reveal more information than just the year of manufacture.

License Plate

License plates serve as proof that the vehicle is registered in the state indicated on the plate. The license plate number can be found in a few locations when you need it:

• On the car below the trunk lid on the rear bumper or the front bumper just below the hood
• Title
• Registration

Mileage

When confirming your car as sold with proof of sale in California, there is no area for the odometer reading, but you are free to insert it on a makeshift version. That's the number you should enter, regardless of what your odometer reads. It's important to be corrected because odometer fraud is a thing.

Names and Dates

Include your name and the buyer's name, as well as the date. The date is significant since it aids the DMV in determining whether or not the car has been sold to a new owner.

Selling Price

This is tough, and buyers and sellers frequently ignore any ethical considerations before setting a drastically low selling price. The price  influences your registration charge from the moment you buy the car until you sell it, as well as all subsequent years you register the vehicle. Keep in mind that it is perjury to knowingly record incorrect information on a DMV document.  Furthermore, if you choose to be clever and claim that you received the vehicle for free, the DMV will still ask you to specify the price you believe the vehicle is worth.

Signatures

Finally, when you've filled out all of the other fields, print and sign your name, and don't forget to include the date. Sign and date both copies if you print two copies, one for you and the new owner.

Why Should You Use a Bill of Sale?

Consumer protection regulations do not apply to private sellers in the same way to dealers and retailers. In addition, the seller has little recourse against the buyer. If a payment fails to transmit, the seller may be left without the item and cash. A bill of sale serves as legal evidence that the transaction occurred. It provides proof of ownership for the buyer, assisting in resolving any legal issues that may arise. A bill of sale proves that ownership has been transferred in the case of buyers. This can shield the seller from any liability difficulties that arise from the property's use after the sale.

What's Next After a Car Purchase?

The bill of sale certifies the transfer of ownership of a car, but the DMV requires additional documentation to accept the transfer.

Seller

The seller has five days from the date of sale to register a private seller's car acquisition. Sellers accomplish this by filling out and submitting a Notice of Transfer and Release of Liability (NRL). This notifies the DMV that the person is no longer liable for any infractions involving the car. The NRL includes the following: New owner's name and address

• Seller's name and address
• Seller's signature
• Date of transfer or sale
• Odometer reading
• Vehicle license, make, model, and vehicle ID or vessel hull number

The NRL cannot be used as legal proof of the transaction because it does not include the buyer's signature.

Buyer

After purchasing an automobile from a private party, buyers have 10 days to register the vehicle in California. Buyers must submit the following information to complete the process:

• The vehicle's title signed by the seller
• A bill of sale if the original owner's name is not on the title
• A record of the odometer mileage if the vehicle is less than 10 years old
• A smog certification
• Use tax and applicable fees

An Application for Duplicate or Transfer of Title is required if the title has been lost or stolen.

What's Next After You Got a Bill of Sale?

To legally certify the change of ownership, you must execute a title transfer after receiving a bill of sale. Keep in mind that your bill of sale is only a receipt; it does not officially transfer ownership of the vehicle to the new owner! To finalize the transaction, follow the California requirements for transferring a car's title. You may need to notify the sale of the DMV and turn in or transfer the previous license plates if you're selling the car. If you purchased the vehicle, you must register it with the DMV and obtain new plates. Please make a copy of the bill of sale and save it for your records. This safeguards you against future legal ramifications, as the bill of sale serves as a confirmation of your agreement with the buyer or seller, including the vehicle's purchase price.