How to Get a Title With a Bill of Sale in Tennessee

To get a title with a bill of sale in Tennessee, you convert that bill of sale into a Certificate of Title through one of two state processes: a Certification of Ownership if the vehicle is worth $3,000 or less or is at least 30 years old, or a surety bond process if it is newer and worth more.¹ A bill of sale by itself is not proof of ownership under Tennessee law; every vehicle driven on public roads must be titled and registered.² Which path you take depends on the vehicle’s age and fair market value, so figure that out before doing anything else.

What the Bill of Sale Needs to Show

Tennessee requires a notarized bill of sale from the last registered owner when you apply for a title without the original title document.² A handwritten receipt without notarization will not get you through the county clerk’s door.

The bill of sale should contain:

Full names and signatures of both buyer and seller
Date of the transaction and the final purchase price
Vehicle description: VIN, year, make, model, and body type
Odometer reading at the time of sale
Notarization by a notary public

If the person who sold you the vehicle was not the last registered owner, you need both a bill of sale from that seller and a separate notarized statement from them explaining the gap in the ownership chain. The Department of Revenue’s Special Investigation Section reviews these situations closely, so more documentation helps.³

Run the VIN Before You Spend Money

Check the VIN through the National Motor Vehicle Title Information System (NMVTIS) before you pay for a bond or an appraisal. The federal database shows title brands like “salvage,” “junk,” or “flood” from any state, along with theft reports.⁴ Any brand from another state follows the vehicle into Tennessee and shows up on your new title. The Department of Revenue also runs its own VIN theft check during the surety bond process, and a stolen vehicle stops everything.³

Which Process Applies to Your Vehicle

Fair market value comes from valuation guides like NADA Guides or Kelley Blue Book, or from a written appraisal by a licensed dealer.³ Get that number pinned down first, because it decides everything else.

Certification of Ownership

If the vehicle is worth $3,000 or less, or is at least 30 years old regardless of value, you qualify for Certification of Ownership.¹ No bond is required. Complete the Certificate of Ownership form, attach the notarized bill of sale and your identification, and take everything to your county clerk. This is the shorter route, and it produces a standard title with no bond notation.

Surety Bond Process

For vehicles under 30 years old and worth more than $3,000, you need a surety bond before the county clerk will process a title application. The bond amount is one and one-half times the vehicle’s fair market value, so a $10,000 vehicle needs a $15,000 bond.⁵ The bond protects the state and any future owner if someone later comes forward with a valid ownership claim or lien.

You have two bond options:

A personal surety bond written by the State of Tennessee at no premium cost. You need two people, other than yourself, who own land in Tennessee, live at different addresses from each other and from you, and are willing to sign as sureties. Each surety must provide a copy of their most recent property tax bill.
A corporate surety bond written by a licensed bonding or insurance company. You pay the company a premium, but no personal sureties are needed. The company’s attorney-in-fact signs the bond and attaches an original power of attorney showing they are licensed in Tennessee.

The personal bond costs less but requires finding two qualifying property owners willing to vouch for you. The corporate bond is easier to arrange but carries a premium.³

You cannot walk into the county clerk with a bond and start the title application. The process goes through the Department of Revenue first:

Complete the Surety Bond Application and include your notarized bill of sale (or the seller’s notarized statement) and a written vehicle appraisal.
Email the packet to Suretybond.title@tn.gov.
The department runs a VIN check for theft reports.
If approved, you receive an approval letter that authorizes you to apply at your local county clerk.

Only after that approval letter arrives do you go to the clerk.³

Identification You Need to Bring

Tennessee accepts either one document from a primary list or two from a secondary list.⁶ Primary documents include a photo driver’s license from any U.S. state or another country, an original or certified birth certificate, a military ID, or a current passport. If you do not have any of those, two secondary documents work, such as a computerized pay stub, work ID, financial institution paperwork, Social Security documents, or a health insurance card.

If the address on your identification does not match where you currently live, bring a separate proof of Tennessee residency such as a utility bill or lease.

Fees and Taxes at the County Clerk

Expect to pay all of these in one transaction:

State sales tax of 7% on the purchase price shown on the bill of sale. A local option tax of up to 2.75% applies to the first $1,600, and a separate state single-article tax of 2.75% applies to the portion between $1,600.01 and $3,200.⁷
A title fee of $13.00, which includes the county clerk’s processing charge.
A registration fee of $26.50 for a standard passenger plate.⁸

If you used the corporate bond route, add whatever premium the bonding company charged.

Odometer Disclosure

Fill out a separate Odometer Disclosure Statement recording the mileage at the time of sale. Federal rules require this for model year 2011 and newer vehicles for the first 20 years; model year 2010 and older vehicles fall under the previous 10-year rule.⁹ Older vehicles that fall outside those windows are exempt.

What Happens After You Apply

The county clerk issues you a license plate and temporary registration on the spot, so you can drive the vehicle right away. The Department of Revenue processes and mails the Certificate of Title, typically within 24 to 48 hours of the transaction.¹⁰

If you went through the surety bond process, the title carries a “bonded” notation. The bond stays in effect for three years, and during that time it covers the financial loss if someone presents a legitimate prior ownership claim. After three years with no claims, you can have the bonded notation removed and receive a clean title.¹¹ Titles issued through Certification of Ownership carry no bond notation.

1
Tennessee Department of Revenue. SB-23 – Certification of Ownership Requirements
2
Justia Law. Tennessee Code 55-3-103 – Application for Certificate of Title – Form and Contents – Statement of Dealer or Bill of Sale
3
Tennessee Department of Revenue. VT-12 – The Surety Bond Process
4
U.S. Department of Justice. Understanding an NMVTIS Vehicle History Report
5
Legal Information Institute. Tennessee Compilation of Rules and Regulations 1320-08-09-.02 – Certificate of Ownership by Bond
6
Tennessee Department of Revenue. Acceptable Forms of Identification and Residency for Vehicle Title and Registration
7
Tennessee Department of Revenue. County Clerk Sales and Use Tax Guide for Automobiles and Boats
8
Tennessee Department of Revenue. VR-4 – Registration Fees
9
National Highway Traffic Safety Administration. Consumer Alert: Changes to Odometer Disclosure Requirements
10
Tennessee Department of Revenue. VTR-4 – When Title Can Be Expected in the Mail
11
Tennessee Secretary of State. Tennessee Rules 1320-08-09 – Title Bonds