Common Bill of Sale Mistakes to Avoid
Learn from others' mistakes and ensure your bill of sale is perfect the first time
Even a small error on a bill of sale can cause significant delays, legal complications, or rejection at the DMV. Understanding common mistakes helps you avoid costly problems and ensures a smooth transaction.
⚠️ According to DMV data, approximately 30% of title transfer applications are rejected due to errors in the bill of sale or supporting documentation.
Top 15 Mistakes to Avoid
Leaving Blank Fields
The Problem: Blank fields can be filled in fraudulently later, creating legal disputes. Even optional fields should contain "N/A" rather than be left empty.
The Consequence: DMV may reject the document, or worse, someone could add false information that binds you legally.
✓ Solution: Fill in all fields. Write "N/A" or "None" for fields that don't apply. Never leave anything blank.
Incorrect or Mismatched VIN
The Problem: VIN must exactly match the vehicle title. A single wrong character makes the document invalid.
The Consequence: Automatic rejection at DMV. May require a completely new bill of sale with new signatures.
✓ Solution: Double-check VIN against the dashboard plate, door jamb sticker, AND title. Copy it character by character. VINs are 17 characters—not 16 or 18.
Mismatched Names Between Title and Bill of Sale
The Problem: Seller's name on bill of sale must EXACTLY match the name on the title— including middle initials, suffixes (Jr., Sr., III), and spelling.
The Consequence: DMV rejection. May need legal documentation (marriage certificate, court order) to prove identity.
✓ Solution: Copy the seller's name EXACTLY as it appears on the title. If the title says "John A. Smith Jr.," don't write "John Smith."
Wrong or Missing Odometer Reading
The Problem: Federal law requires accurate odometer disclosure for vehicles under 10 years old. Wrong reading or missing disclosure is a federal violation.
The Consequence: DMV rejection, possible fines up to $10,000, and potential fraud charges.
✓ Solution: Record the exact odometer reading at time of sale. Take a photo of the odometer as proof. Note if odometer reading exceeds mechanical limits.
Missing or Incomplete Signatures
The Problem: Both buyer AND seller must sign. If there are co-owners, ALL must sign. Missing even one signature invalidates the document.
The Consequence: Complete rejection. Must get all parties together again for new signatures.
✓ Solution: Have all parties sign in person if possible. Check your state's notarization requirements—22 states require notarized bills of sale.
Incorrect Purchase Price
The Problem: Listing price as "$1" or "gift" to avoid sales tax is illegal in most states. Price must reflect fair market value.
The Consequence: DMV will assess sales tax based on market value anyway. Possible audit, penalties, and fraud charges.
✓ Solution: List the actual sale price. If it's a gift, check your state's rules for gift transfers—many require a separate affidavit.
Using an Outdated or Wrong State Form
The Problem: Some states require specific forms. Using a generic template or old form version may not be accepted.
The Consequence: DMV rejection, even if all information is correct.
✓ Solution: Use our state-specific generator or check your DMV website for required forms. Always verify current requirements.
Not Keeping Copies
The Problem: Many people give the only copy to the buyer or DMV without keeping one for themselves.
The Consequence: No proof of sale if disputes arise. Difficulty with taxes, liability, or insurance claims.
✓ Solution: Make at least 3 copies: one for buyer, one for seller, one for DMV. Keep digital copies as backup.
Wrong Date
The Problem: Date on bill of sale must match (or be close to) the date on the title transfer. Future dates or very old dates raise red flags.
The Consequence: Questions about validity, possible rejection, registration timeline issues.
✓ Solution: Use the actual transaction date. Don't backdate or future-date. Register vehicle within your state's deadline (typically 30-90 days).
Forgetting to Include "As-Is" Language
The Problem: If selling without warranty, you MUST explicitly state "AS-IS" or "WITH ALL FAULTS." Otherwise, implied warranties may apply.
The Consequence: Seller may be liable for repairs or defects discovered after sale.
✓ Solution: Clearly mark warranty status. If selling as-is, use prominent language: "SOLD AS-IS WITH NO WARRANTY."
Not Disclosing Liens
The Problem: Selling a vehicle with an undisclosed lien is fraud. Buyer cannot get clear title until lien is paid off.
The Consequence: Legal action, forced return of vehicle, possible criminal charges.
✓ Solution: Check title for lien holders. Pay off liens before sale, or clearly disclose and arrange payoff from sale proceeds.
Incorrect Vehicle Description
The Problem: Year, make, model, and color must match title exactly. "Toyota" vs "Toyota Camry" or "2015" vs "2016" can cause problems.
The Consequence: DMV rejection, delays in registration.
✓ Solution: Copy vehicle description exactly from title. Include trim level if shown on title (e.g., "2016 Toyota Camry SE").
Using Nicknames or Business Names Incorrectly
The Problem: Using "Bob Smith" when legal name is "Robert Smith," or using business name without proper authority.
The Consequence: DMV rejection, questions about authority to sell.
✓ Solution: Use legal names from driver's license/ID. If selling as business, include "DBA" notation if applicable.
Not Getting Bill of Sale Notarized When Required
The Problem: 22 states require notarization. Showing up without notarized signatures means immediate rejection.
The Consequence: Must find notary, coordinate with seller again, pay notary fee, return to DMV.
✓ Solution: Check state requirements BEFORE signing. If notarization required, both parties visit notary together with ID.
Waiting Too Long to Register
The Problem: Most states require registration within 30-90 days. Delays result in late fees and potential liability issues.
The Consequence: Late fees ($25-$100+), driving without valid registration (ticketable offense), seller remains liable for accidents.
✓ Solution: Register within 30 days of purchase. Mark deadline on calendar. Get insurance immediately after purchase.
Preventing Mistakes: Best Practices
Use a State-Specific Template
Our generator includes all required fields for your state, reducing errors.
Review Everything Twice
Before signing, review every field with both parties present. One person reads aloud, other verifies.
Bring the Title to the Meeting
Copy all information directly from the title to ensure accuracy.
Get Everything in Writing
Don't rely on verbal agreements. Document everything on the bill of sale.
Verify State Requirements First
Check DMV website or call ahead to confirm notarization, inspection, and form requirements.
Create an Error-Free Bill of Sale
Our generator helps you avoid all these common mistakes with state-specific templates and validation.
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