Important Terms for a Bill of Sale
- Seller: The person or party that is releasing the property.
- Buyers: The person or party that is taking possession of the property in exchange for consideration.
- Date of sale: The date that the sale took place.
- Price: The price paid for the property.
- Sales tax: Indicates whether or not sales tax was collected.
- Description: A description of the property being sold, including make, model, year, and VIN.
- As-is: Indicates that the item was sold as-is and without any warranties.
- Signature/Certification: The signature of the seller and/or buyer. In-person signatures are always valid, but you can also use PandaDoc to obtain a legal digital signature.
1. California Bill of Sale Requirements
Although completing a bill of sale is a smart decision when buying or selling many high-value items, California only requires them in two situations:
- Buying or selling a horse
- Registering certain privately purchased cars or boats
For motor vehicles, you can use the form that the state of California provides (Form Reg-135) or you can draft an original document. California does not provide an official Bill of Sale for livestock. If you buy or sell a horse in California, you will need to draft your own bill of sale.
Why use one?
Private sellers are not subject to the same consumer protection laws as dealers and retailers. The seller also has minimal recourse against the buyer. For example, if a payment fails to transfer, the seller might be left without the item and without any payment.
A bill of sale provides legal proof that the transaction took place. It serves as proof of ownership for the buyer, helping to diffuse potential legal disputes.
For sellers, a bill of sale proves that the transfer of ownership has happened. This can protect the seller from liability issues arising from the use of the property after the sale.
Additional considerations
Language requirements
You may draft an original bill of sale in any language you choose. If you choose to use Form Reg-135 from the California Department of Motor Vehicles (DMV), be aware that these documents are only provided in English.
You can have them translated, but you’ll need to choose a certified interpreter. Translations done by a court interpreter will be legally valid. If you need help finding a state-certified translator qualified in your chosen language, California’s court system provides a Judicial Council Master List.
Number of copies
If you are completing a bill of sale to satisfy a vehicle registration requirement, the law requires that you provide a copy to the DMV. The buyer and seller should also retain copies, which means that you would need a total of three copies.
In all other instances, one copy each for the buyer and seller should satisfy legal requirements. The exception is any translation that involves an attorney, in which case any attorney present should have a copy as well.
Junk vehicles
In the state of California, if a vehicle is reported to the DMV as a total loss by the vehicle owner or an insurer, it may be rebuilt and restored to operating condition as a revived salvage vehicle. Any revived salvage vehicle must be registered again with the DMV.
To register a revived salvage vehicle, a buyer needs several state-required documents including proof of ownership. A bill of sale fulfills this requirement if the applicant is not the person who owned the vehicle prior to salvage. There are also specific inspection requirements, including certificates of brake and lamp adjustments.
After purchasing a vehicle
The bill of sale documents the transfer of a vehicle’s ownership, but additional documents are required for the DMV to accept the transfer.
If you’re the seller
Private sellers have five days from the date of sale to register the purchase of a car with the DMV. Sellers do this by completing and filing a Notice of Transfer and Release of Liability (NRL). This tells the DMV that the person is no longer responsible for violations associated with that vehicle.
The NRL includes the:
- 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
Because the NRL does not include the buyer’s signature, it cannot serve as legal proof that the sale occurred.
If you’re the buyer
Buyers have 10 days after purchasing a car from a private party to register the vehicle in California. To complete the process, buyers must provide:
- The vehicle’s title (also known as a pink slip) 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
If the title has been lost or stolen, an Application for Duplicate or Transfer of Title is required.
2. California Car (Vehicle) Bill of Sale
For private car buyers and sellers in California, a bill of sale is an important legal safeguard that can help to prevent fraud.
A bill of sale does not serve as proof of ownership. Only a title has that legal authority. Bills of sale serve as proof of title transfer, which buyers and sellers need for personal financial and tax records. A bill of sale also provides support against potential legal recourse and issues of ownership at the DMV. You can access the DMV’s official motor vehicle bill of sale here.
3. California Boat Bill of Sale
A boat bill of sale may be required when a buyer registers a boat purchased from a private party. Boats that require registration include:
- A sailboat that’s more than eight feet long
- Any boat with a motor, regardless of size
Only registered boats in these categories may sail on any California waterway, even if the waterway is private.
Registration is not required for smaller, non-motorized boats, but bills of sale are still important legal protections for private buyers and sellers. California’s Form Reg-135 is valid for boats as well as cars, or you can draft your own boat bill of sale.
4. California Firearm Bill of Sale
The private purchase and sale of a firearm are prohibited in California, so there is no official bill of sale process. A person who buys a gun from a registered dealer will receive a Dealer’s Record of Sale (DROS), which has the same function and includes much of the same information as a bill of sale. The DROS includes:
- The firearm’s make, model, and serial number
- The type of firearm, including caliber and barrel length
- The date of the sale
- The buyer’s name and contact information
Private ownership transfers are allowed if they are between:
- A parent and child
- A grandparent and grandchild
- Domestic partners
Parties in a transfer always have to be 21 years of age or older in California. There are exemptions for those 18 years old or older who are licensed hunters, peace officers, law enforcement agents, or military service personnel.
The gift of a firearm to a family member or partner requires a Report of Operation of Law or Intra-Familial Handgun Transaction. This form should be submitted with a $19 processing fee to the State of California Department of Justice within 30 days of the transfer of ownership.
This document includes much of the same information as the DROS. It does not include the name of the person who transferred ownership, but it does need to specify the relationship if it’s a family transfer. If the recipient returns the gun to its original owner later, the original owner needs to fill out the form and submit the processing fee.
These are the only required documents for private gun transfer in California. A bill of sale isn’t required. You can choose to complete one for additional verification, for example, if you’d prefer to have the name of the original owner documented.
5. California Horse or Livestock Bill of Sale
Under Section 19525 of the California Business and Professions Code, any sale or ownership transfer of a horse must include a written bill of sale. The buyer and seller, or their agents, must sign the document. There are only two exceptions:
- When selling fractional or season interest in a stallion, the syndicate manager or stallion manager may sign.
- If the transaction happens via public auction, an auction house’s generated receipt can serve as the bill of sale, as long as the buyer or a buyer’s agent also signs. The state only permits one person to be the agent for both buyer and seller if those two parties both consent in writing.
California doesn’t publish an official horse bill of sale. Buyers and sellers are free to draft their own. The only requirement, other than buyer and seller signature, is that the bill of sale includes the purchase price.
No other livestock sales require bills of sale, but they are important documents to have in case of liability or other legal disputes.
6. California General Bill of Sale
A general bill of sale proves the purchase of any non-regulated personal property. The information included should include at minimum the standard information expected on any bill of sale:
- Date
- Purchase price
- Contact information
- Signatures
