There is no single California law that makes a bill of sale mandatory for every transaction, so whether a bill of sale is required in California depends on what changes hands. State rules specifically call for one in a handful of situations: private vehicle sales where the seller isn’t the person named on the title, transfers of undocumented vessels, and horse sales. For most other personal property, no statute forces you to sign one, but a written record protects both sides and is worth creating for anything of real value.
Private Vehicle Sales
The California DMV treats a bill of sale as an official document that establishes the chain of ownership, and its manual states the bill of sale “must accurately establish the chain of ownership.”1California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – 1.020 Bill of Sale (VC 1652) It’s accepted in place of the registered owner’s release signature on the title itself.
You are specifically required to have one when the person selling you the car is not the owner listed on the title. In that case, the DMV wants a bill of sale signed by both the seller and the person shown as the registered owner.2California Department of Motor Vehicles. Registering a Vehicle Purchased From a Private Party Without it, the chain of ownership has a gap the DMV won’t ignore.
When the title is properly signed by the registered owner, a bill of sale isn’t strictly required, but you still want one. It records the purchase price, which drives the use tax the buyer will owe, and it fixes the sale date in writing. If the buyer later disputes the odometer reading, or the seller gets a ticket for a car they no longer own, the document settles the question. The DMV offers a free form, REG 135, though any written document that identifies the vehicle is acceptable.1California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – 1.020 Bill of Sale (VC 1652)
Sales between California-licensed dealers, and dealer-to-retail sales with a properly endorsed title, do not require a bill of sale.1California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – 1.020 Bill of Sale (VC 1652) Those transactions run on different paperwork handled at the dealership.
Boats and Undocumented Vessels
For vessels not registered with the U.S. Coast Guard, a bill of sale is required to transfer ownership through the DMV. The title transfer process for vessels lists the certificate of ownership, a bill of sale, applicable fees, and use tax as the documents needed.3California Department of Motor Vehicles. Title Transfers and Changes Vehicle Code Section 9905 sets out the seller’s obligations for these transfers, including proper endorsement of the ownership certificate and notice to the DMV.4California Legislative Information. California Vehicle Code 9905 – Transfer of Title or Interest in Undocumented Vessel
The bill of sale for a boat should include the hull identification number (HIN), the vessel’s make and length, the engine type, and the registration or documentation number. Without it, the buyer will struggle to register the vessel in their name.
Horse Sales
California is one of the few states that specifically requires a written bill of sale for horse transactions. Under Business and Professions Code Section 19525, every horse sale must be accompanied by a bill of sale signed by both buyer and seller, or by their authorized agents. If an agent represents both sides, that dual agency has to be disclosed in writing. Any commission over $500 paid to an agent must also appear in the bill of sale. A party who violates these rules can face treble damages, meaning three times the actual harm, if the injured party sues.
Firearms
Firearms don’t follow the ordinary bill-of-sale pattern. All private-party firearm transfers in California must be processed through a licensed firearms dealer.5California Department of Justice. Firearms Information Bulletin You can’t legally hand a gun over and take payment the way you’d sell a bicycle. The dealer runs the background check, collects the state fees, and manages the waiting period. Because the dealer’s records serve as the official documentation of the transfer, a separate private bill of sale isn’t legally required. If you’re planning a transfer, your first step is finding a licensed dealer, not drafting a document between yourselves.
Everything Else: Furniture, Electronics, Jewelry, Collectibles
For ordinary personal property, California law doesn’t require a bill of sale. No statute mandates one for a used couch, a set of tools, or a piece of art. For anything of meaningful value, though, putting the sale in writing is smart. It locks in the price, the condition, and the identities of both parties, and it heads off arguments about what was promised.
Private sales also run on the “as-is” principle. When you sell something as an individual rather than a merchant, federal consumer warranty laws such as the Magnuson-Moss Warranty Act don’t apply; those obligations sit with businesses that sell products commercially.6Federal Trade Commission. Businessperson’s Guide to Federal Warranty Law Writing “sold as-is” into the bill of sale makes that explicit and reduces the odds of a later dispute over condition.
What to Put in the Document
A bill of sale should contain enough detail that a stranger reading it later could tell exactly what was sold, for how much, and between whom. Include the following:
- Full legal names and current addresses of both buyer and seller.
- A description of the item, with make, model, year, color, and any serial or identification numbers. For a vehicle, that means the VIN; for a boat, the HIN.
- The total purchase price and the form of payment (cash, check, trade).
- The calendar date of the sale.
- A statement of the item’s condition and whether it’s being sold as-is with no warranties.
- Signatures of both parties, with dates.
For vehicles, the DMV’s REG 135 covers these fields in a standardized layout. You aren’t required to use that specific form, since any written bill of sale that identifies the vehicle will work, but the form makes it harder to leave something out.1California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – 1.020 Bill of Sale (VC 1652)
Does a Bill of Sale Need to Be Notarized in California?
No. The DMV’s manual states directly that a bill of sale is “not required to be notarized or witnessed.”1California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – 1.020 Bill of Sale (VC 1652) Signatures from both parties are enough for the typical transaction.
For high-value transfers where you want extra authentication, notarization is available. California authorized remote online notarization under SB 696, which became operative on January 1, 2025 and allows notaries to perform notarial acts through audio-video communication.7California Secretary of State. Customer Alerts Whether a given notary offers it depends on their registration with the Secretary of State. In-person notarization remains widely available, and California caps notary fees at $15 per signature.
Both parties should keep a signed copy. The buyer will need theirs to register a vehicle or vessel with the DMV. The seller should hang onto theirs indefinitely as proof the sale happened and the item changed hands on a specific date.
One More Step for Vehicle Sellers
If you’re selling a car, the bill of sale isn’t the document that protects you from what happens to the vehicle after it leaves your driveway. That job belongs to the Notice of Transfer and Release of Liability, form REG 138, which the seller must file with the DMV within five calendar days of the sale.8California Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – Notice of Transfer and Release of Liability It’s separate from the title transfer and can be filed online. Vehicle Code Section 5900 requires the seller to report the sale date, the buyer’s name and address, and the odometer reading.9California Legislative Information. California Vehicle Code 5900
Skip this and you stay the registered owner in DMV records until the buyer completes their side of the transfer. Parking tickets, toll violations, and accident liability for a car you no longer own can all come back to you. File the REG 138 the same day you hand over the keys.
A separate note for vehicle buyers: the private-sale process also involves a valid smog certificate from the seller (with several exemptions), an odometer disclosure, use tax paid at registration, and a $15 title transfer fee. The bill of sale is one document among these, and it’s the primary evidence of the actual purchase price when the DMV calculates use tax.10California Department of Tax and Fee Administration. Vehicles