Which is more important to get first, the title or the bill of sale?
What the title does
The certificate of title shows who legally owns the vehicle. Before you buy, confirm that the name on the title matches the seller and that there are no liens listed. You will sign the title over to yourself to register the car in your name.
- Seller's name matches the title
- No lien holders listed, or a lien release is provided
- Title is signed in the correct place
What the bill of sale does
A bill of sale is a written record of the transaction, including the price, the date, the vehicle identification number, and both parties' names. It can help if a dispute comes up later. Some states require one, while others do not, so check local rules.
Putting them together
Get the title in hand before you pay in full, or use a secure escrow or a notary where your area allows it. Keep copies of both documents and the signed transfer. A complete paper trail protects you if the registration office asks questions.
If you are unsure what your state requires, call the local motor vehicle office before the signing appointment.
Common mistakes
- Paying in full before the seller has the title in hand.
- Accepting a handwritten receipt with no vehicle identification number.
- Assuming a bill of sale alone proves the seller owns the car.
