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Bill of Sale

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BILL OF SALE OF AUTOMOBILE

To be completed upon sale of motor vehicle.

MONTANA
County of

$

FOR AND IN CONSIDERATION OF the execution of a Promissory Note for $ and downpayment of $ by (Buyer(s), to "Seller(s)", Seller(s) do hereby bargain and sell to Buyer(s) the following personal property:

One (1) Motor Vehicle

Make

Model

Body Type

Vehicle Identification Number (VIN)

Year:

The said property I guarantee is my own and free of all claims and offsets of any and all kinds.

To have and to hold the same unto Buyer(s) and Buyer(s) executors, administrators and assigns, forever.

Seller(s) hereby covenant to and with Buyer(s)that Seller(s) is the true and lawful owner(s) of the above-described motor vehicle, that the same is free from all encumbrances whatsoever except the lien retained by Seller(s), that Seller(s) has good right to sell the same as aforesaid, and that Seller(s) will warrant and defend the same against all lawful claims and demands whatsoever.

Seller(s)

Signature

Print Name:

Signature

Print Name:

SWORN TO AND SUBSCRIBED BEFORE ME, this the day of , 20

My Commission Expires:

NOTARY PUBLIC

U.S. Legal Forms, Inc. http://www.uslegalforms.com

Form MT-00431-C

ODOMETER DISCLOSURE STATEMENT

To be completed by Transferor (Seller)

Federal law (and State law, if applicable) requires that you state the mileage upon transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

I, , state that the odometer now reads miles and to the best of my knowledge that it reflects the actual mileage of the vehicle described below, unless one of the following statements is checked.

I hereby certify that to the best of my knowledge the odometer reading reflects the amount of mileage in excess of its mechanical limits.

I hereby certify that the odometer reading is NOT the actual mileage.
WARNING - ODOMETER DISCREPANCY.

Make

Model

Body Type

Vehicle Identification Number (VIN)

Year:

Signature of Transferor (Seller):

Transferor's (Seller's) Information

Transferor's Name (Please Type or Print):

Street Address:

City:

State:

Zip:

Transferee's (Buyer's) Information

Transferee's Name (Please Type or Print):

Street Address:

City:

State:

Zip:

Signature of Transferee (Buyer):

DATE OF STATEMENT:

STATE OF MONTANA
COUNTY OF

SWORN TO AND SUBSCRIBED BEFORE ME, this the day of , 20

My Commission Expires:

NOTARY PUBLIC

ORIGINAL MUST BE PROVIDED WITH APPLICATION FOR A CERTIFICATE OF TITLE

PROMISSORY NOTE

(In Connection with Sale of Vehicle)

$

County, Montana

Date:

FOR VALUE RECEIVED, the undersigned Buyer(s), promise to pay to the order of
Seller(s), whose address is
the sum of
($ ), together with no interest, or with interest of percent per annum,
payable in monthly installments of per month, with the first payment
being due on the day of 20 and a like payment on the same
day of each month thereafter until fully paid.

THERE will be no pre-payment penalty on this Note.

IF DEFAULT is made in payment after demand, and such default shall continue for a period of 10 days, then the holder hereof may, at its option, declare the whole sum then remaining unpaid immediately due and payable. In case of any such default, the undersigned agrees to pay all costs of collection, including a reasonable attorney's fee, whether or not suit is instituted. Upon default for ten (10) days, the vehicle sold to Buyer in connection with this promissory note shall be returned to Seller(s) and Seller(s) is granted all rights of repossession as a secured party.

PRESENTMENT for payment, demand, notice of dishonor, protest, notice of protest and any homestead or personal property exemption allowed by the constitutions or laws of any state are hereby waived by the undersigned. Failure by the holder hereof to exercise any option granted it hereunder shall not constitute a waiver of future rights.

This Note is given to secure the payment of the purchase price of a vehicle, identified below:

Make:

Model:

Year:

VIN:

Title to the vehicle will either be (check option) retained by Seller until all payment due under this note are paid in full, or transferred to Buyer at execution of this note, in which case Seller retains a vendors lien in said vehicle and Buyer grants to Seller a security interest in the vehicle until this note is paid in full. If title is transferred to Buyer, Seller shall be listed as a lender on the title of the vehicle, whether or not Seller elects to perfect Seller's security interest in the vehicle.

BORROWER/BUYER SS#

BORROWER/BUYER

BORROWER/BUYER SS#

BORROWER/BUYER

Seller Name, Address, Phone:

Buyer(s) Name, Address, Phone:

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What a Bill of Sale Is and when it applies

A Bill of Sale is a written record that documents the transfer of ownership of personal property from a seller to a buyer. It identifies the parties, describes the item sold, states the payment or consideration, and records the date of transfer. For vehicles, boats, and certain title-bearing goods the Bill of Sale often supports title transfer, registration, and tax reporting. In many U.S. jurisdictions a completed Bill of Sale helps resolve ownership disputes, provides proof of purchase for warranty or insurance, and preserves evidence of the exchange for tax or legal purposes.

Why using a Bill of Sale matters

A clear Bill of Sale creates an auditable record of ownership transfer, reduces dispute risk, and supports registration and tax compliance under federal and state rules.

Why using a Bill of Sale matters

Who typically completes a Bill of Sale

Individuals and businesses use Bills of Sale when selling tangible personal property to document transfer and assign responsibility.

  • Private sellers and buyers — Individuals selling vehicles, recreational equipment, or personal property.
  • Dealers and brokers — Businesses documenting inventory sales, trade-ins, or wholesale transfers.
  • Lenders and lienholders — Parties recording release of security interests after payoff.

Choose the form and any notarization or witness steps that match the asset type and the state requirements for transfers.

Step-by-step: completing a Bill of Sale

Follow these sequential steps to reduce errors and ensure the document supports title transfer and tax reporting.

  • 01
    Prepare details: Collect IDs, VIN/serial, title information, and payment terms.
  • 02
    Fill core fields: Complete buyer/seller, description, price, and date fields exactly.
  • 03
    Authenticate signing: Sign in presence of witness or notary when required by state law.
  • 04
    Distribute copies: Give originals to buyer and retain seller copy for records.

Essential data elements to include

Seller identity: Full legal name
Buyer identity: Full legal name
Property details: Make/model/year, VIN/serial
Sale consideration: Exact dollar amount
Effective date: MM/DD/YYYY
Signatures: Signed and dated by parties

Core clauses and optional provisions to consider

A professional Bill of Sale combines mandatory identifiers with optional clauses that clarify warranties, liens, and governing law.

Warranty clause

Specify whether the sale is 'as-is' or includes express warranties; include any limited warranty terms and duration to manage expectations and liability.

Liens and encumbrances

Declare whether the seller warrants the property is free of liens; if liens exist, describe them and explain how they will be resolved before transfer.

Odometer statement

For motor vehicles, include odometer disclosure per federal/state requirements with the reading at time of sale.

Consideration detail

State payment method, deposit amounts, escrow arrangements, or trade-in allowances to avoid later disputes.

Indemnity and liability

Allocate post-sale responsibilities, such as damage discovered after transfer and who covers taxes or registration fees.

Governing law

Name the state law that will govern interpretation and disputes; choose a state with meaningful contacts to the transaction.

Supporting documents to attach or keep with the Bill of Sale

Attach or retain documents that corroborate the transaction and speed title transfer, registration, and tax reporting.

Title certificate

Attach original or copy of title, assignment pages, or bill of sale used for titling when available.

Payment proof

Keep receipts, cancelled checks, or electronic payment records showing the consideration exchanged.

Odometer disclosure

For applicable vehicles, include the signed odometer disclosure statement required by federal and state rules.

Lien release

Attach any lien release documents showing encumbrances have been satisfied before transfer.

How to complete and route a Bill of Sale online

Map basic workflow settings to streamline completion, signing, and record retention in an e-signature platform.

Field Configuration
Buyer signature Signer role; email authentication
Seller signature Signer role; optional witness field
Notary block Add notarization field and A/V recording if using RON
Retention Enable PDF and audit trail retention for statutory periods

Digital signing and eSubmission considerations

Use an e-signature workflow that preserves audit trails, timestamps, and tamper-evident copies for legal and registration use.

  • File formats: PDF, DOCX supported
  • Authentication: Email, SMS, KBA available
  • Integrations: CRM and storage integrations

Where to send or file a completed Bill of Sale

Routing depends on the asset type: vehicles typically require submission to DMV; vessels may require registration with state marine agencies; private sales may only need retained copies.

  • DMV / titling office: Submit bill of sale with title application and fees for vehicle registration
  • County clerk: File for certain property transfers where required by county rules
  • Insurance provider: Provide copy to update coverage effective date
  • Tax authorities: Retain receipt for sales tax or use tax reporting

Common mistakes to avoid when preparing a Bill of Sale

  • Incomplete identifiers — omitting VIN or serial number causes registration delays.
  • Vague consideration — using terms like 'fair market value' without specifics invites disputes.
  • Missing signatures — unsigned forms lack enforceability in many jurisdictions.
  • Ignoring state rules — skipping notarization or witness steps required by state law.

Risks and potential consequences of an incorrect Bill of Sale

Title transfer failure: Buyer remains unregistered
Sales tax exposure: Fines or audit adjustments
Liens retained: Creditor claims continue
Fraud allegations: Civil or criminal risk
Insurance gaps: Coverage denied after transfer
Registration delay: Administrative penalties

Practical tips for accurate and efficient completion

Apply consistent practices that reduce friction in titling, registration, and tax reporting.

Verify legal names
Confirm buyer and seller names against IDs or business registration records to prevent mismatches during registration or tax reporting.
Use precise identifiers
Include VINs, serial numbers, and title numbers. Cross-reference these identifiers with registration forms to speed processing.
Record payment proof
Attach receipts or escrow records to demonstrate consideration and support sales tax or capital gains calculations.
Preserve digital audit trails
Keep signed PDFs plus an audit trail showing timestamps, signer IPs, and authentication methods for future verification.

Practical examples of Bill of Sale usage

Two short scenarios show how Bills of Sale function in common transactions.

Private Vehicle Sale

A private seller documents buyer name, VIN, sale price, and odometer reading

  • Buyer pays by certified check
  • The buyer uses the Bill of Sale plus signed title to register the vehicle and avoid title disputes by the county DMV.

Equipment Transfer Between Companies

A small business sells used construction equipment to a contractor

  • Parties list serial numbers, lien releases, and payment terms
  • The buyer retains the Bill of Sale and lien release to demonstrate clear title when seeking insurance or reselling the equipment.

eSignature vendor comparison for signing Bills of Sale

Compare common vendor attributes relevant to executing and retaining legally binding Bills of Sale; signNow appears first in the table per platform conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Bills of Sale

Answers to common questions on legal validity, notarization, signatures, and what to do if details change after signing.


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