Bill of Sale

The Basics

When you buy or sell a motor vehicle, you'll need a bill of sale. This serves as a legal receipt from the buyer to the seller documenting both the change in ownership and the purchase price. The state of Alabama has specific requirements about what a bill of sale must contain.

Invoices are not acceptable as a bill of sale. The bill of sale must be a separate document used to transfer the title of the vehicle.

The Particulars

The following information must appear on the bill of sale:

• Name of purchaser.

• Complete address of purchaser. Must be street address; a P.O. box is not acceptable.

• Date of sale.

• Complete vehicle description, including vehicle identification number (VIN), make, model, year, series number, and body type.

• Lienholder created at time of resale.

• Date of lien, if applicable.

• Name of seller; if dealer, then seller must be the licensed name.

• Complete address of seller; P.O. box is not acceptable.

• If seller is a dealer, then dealer's state and county business license number must be on the document.

• If seller is a dealer, the following statement must be stamped or imprinted on the document: "Penalty of $1.50 due if not transferred within 10 days."

• Vehicle odometer reading at time of sale.

• Signature of seller or authorized representative.

• Notary public seal identifying the seller and his signature.

You'll usually be provided an appropriate bill of sale if you buy from a dealer. Be sure that you get a bill of sale when you buy a car; you'll need it before you can title and register the vehicle in your own name.

Generic Bill of Sale

To assist you in finding a form, we provide links to generic forms from our sponsors.