California Bill of Sale
When buying or selling a vehicle in California, paperwork matters just as much as the exchange of money. One of the most important documents in a private vehicle transaction is the bill of sale. While it may seem like a simple form, it plays a major role in protecting both the buyer and the seller and ensuring the transaction is properly recorded.
In California, a bill of sale acts as written proof that ownership of a vehicle has changed hands. It documents key details of the sale and helps prevent disputes, misunderstandings, and legal problems later on. Whether you’re selling an older car, buying a used vehicle from a private party, or transferring ownership within a family, understanding how a bill of sale works is essential.
What Is a California Bill of Sale?
A bill of sale is a written document that records the sale and transfer of ownership of a vehicle from one person to another. In California, it serves as an official record of the transaction and supports the title transfer process with the Department of Motor Vehicles.
While the vehicle title is the primary document used to transfer ownership, the bill of sale provides additional protection and clarity. It confirms when the sale occurred, how much the vehicle was sold for, and who was involved in the transaction.
A properly completed bill of sale typically includes:
- The sale price of the vehicle
- The date of the transaction
- Vehicle details such as make, model, year, and VIN
- The full names of both the buyer and seller
- Signatures from both parties
In private-party sales, especially those involving used vehicles, the bill of sale acts as a receipt for the buyer and proof of transfer for the seller.
Is a Bill of Sale Required in California?
In many cases, yes, especially for private vehicle sales.
California does not always require a bill of sale for every vehicle transaction, but the DMV strongly recommends it, and it is often necessary to support the title transfer. It becomes especially important when:
- The title is incomplete or delayed
- The sale price needs to be documented
- The buyer and seller want written proof of the transaction
- There is a dispute about ownership or liability
For sellers, a bill of sale helps demonstrate when responsibility for the vehicle ended. For buyers, it confirms the purchase and can help resolve issues if problems arise with registration or ownership.
Even when not strictly required, skipping a bill of sale is rarely a good idea.
Why a Bill of Sale Protects Both Buyer and Seller
A bill of sale provides legal protection to both parties involved in the transaction.
Protection for the Seller
Once a vehicle is sold, the seller wants clear proof that they are no longer responsible for it. A bill of sale helps show:
- The exact date and time ownership changed
- That the vehicle was sold “as is” (if stated)
- That the buyer accepted the vehicle
This can be extremely important if the vehicle later receives parking tickets, is involved in an accident, or is abandoned. Combined with a Notice of Transfer and Release of Liability, the bill of sale helps protect the seller from future issues.
Protection for the Buyer
For the buyer, the bill of sale acts as a receipt and proof of purchase. It confirms:
- How much was paid
- Who sold the vehicle
- What vehicle was purchased
If there are delays with title transfer or questions about ownership, the bill of sale can help resolve them.
How to Obtain a California Bill of Sale
The easiest and most common way to complete a bill of sale in California is by using DMV Form REG 135 (Bill of Sale). This is a standard form provided by the DMV and is widely accepted for private vehicle transactions.
You can DMV Form REG 135 (Bill of Sale).
You can:
- Download the form from the official California Department of Motor Vehicles website
- Print it and fill it out by hand
- Complete it electronically if using a fillable PDF
REG 135 is simple, clear, and designed specifically for vehicle sales. It ensures all required information is included.
Creating Your Own Bill of Sale
California also allows buyers and sellers to create their own bill of sale instead of using REG 135. This can be useful in unique situations, such as:
- Family transfers
- Collector vehicles
- Special agreements
However, a custom bill of sale must still include all essential details:
- Buyer and seller names
- Vehicle information
- Sale price
- Date of sale
- Signatures
If any of these elements are missing, the document may not be accepted by the DMV or could cause delays.
What Information Must Be Included
To avoid problems, a California bill of sale should clearly and accurately include:
Vehicle Information
- Make
- Model
- Year
- Vehicle Identification Number (VIN)
Transaction Details
- Sale date
- Purchase price
Buyer Information
- Full legal name
- Address (recommended, though not always required)
Seller Information
- Full legal name
- Address (recommended)
Signatures
- Both buyer and seller should sign
Some sellers also include an “as-is” statement to clarify that the vehicle is sold without warranties, unless otherwise agreed.
What If the Title Is Not Available?
A bill of sale becomes especially important if the title is missing, delayed, or needs correction.
While a bill of sale does not replace the title, it can support the transaction while the title issue is being resolved. In these cases:
- The seller may need to request a duplicate title
- The buyer may need to wait to complete registration
- The DMV may require additional forms
Always make sure the title situation is addressed as soon as possible, but never skip documenting the sale.
DMV Form REG 262
Form REG 262 is a special California DMV form that combines:
- A bill of sale
- An odometer disclosure statement
- A power of attorney
Because of its security features, REG 262 cannot be downloaded online.
How to Obtain REG 262
To get REG 262, you must:
- Visit a local DMV office, or
- Request the form to be mailed to you
This form is commonly used when:
- The title is missing
- An odometer disclosure is required
- Someone is authorized to complete paperwork on another person’s behalf
Because REG 262 contains sensitive information, it must be handled carefully and completed correctly.
Odometer Disclosure Requirements
In many vehicle sales, especially for vehicles under a certain age, California law requires an odometer disclosure. This confirms the mileage at the time of sale and helps prevent fraud.
Odometer disclosure may be included:
- On the vehicle title
- On Form REG 262
- On other DMV-approved documents
Failing to provide accurate odometer information can delay registration or cause legal issues.
Keeping Copies for Your Records
Both the buyer and the seller should keep copies of the completed bill of sale.
- Sellers should keep a copy for at least several years
- Buyers should keep a copy until the vehicle is fully registered (and ideally longer)
Having a copy can help resolve disputes, answer DMV questions, or prove ownership if paperwork is delayed.
California License Plates
When a vehicle is sold in California, license plates usually stay with the vehicle, not the owner. This means the buyer typically keeps the existing plates unless:
- The plates are personalized
- The seller requests to retain special plates
Buyers should ensure:
- Plates match the vehicle
- Registration is properly transferred
- No outstanding fees or holds exist
Sellers should remove personalized plates before completing the sale if they intend to keep them.
A California bill of sale is more than just a piece of paper, it’s a key document that protects both sides of a vehicle transaction. Whether you’re buying or selling, taking the time to complete a proper bill of sale helps ensure the transfer is smooth, legal, and well-documented.
Using DMV-approved forms like REG 135, understanding when REG 262 is required, and keeping accurate records can save you from unnecessary stress and future disputes. In California, documenting a vehicle sale correctly isn’t just recommended, it’s part of responsible ownership.
If you’re completing a vehicle transaction, make the bill of sale one of your top priorities.