10 Common Bill of Sale Mistakes (and How to Avoid Them)

A bill of sale is simple, which is exactly why people get careless with it. The same handful of mistakes show up again and again — and most cause a rejected registration or a dispute that was completely avoidable. Here are the ten to watch for.

1. Leaving required fields blank

The number-one cause of a rejected document. A missing date, an empty odometer line, or a blank signature box can send you back to the DMV. Fix: Fill every required field. Our generator blocks “complete” until nothing required is empty and shows a completeness score.

2. Using a nickname instead of the legal name

“Mike” instead of “Michael,” or a maiden name that doesn’t match an ID, creates a mismatch the DMV may question. Fix: Use full legal names exactly as on each person’s government ID.

3. Getting the VIN wrong

A VIN is 17 characters and never contains the letters I, O, or Q. One wrong character ties the document to the wrong (or no) vehicle. Fix: Copy the VIN directly from the title or dashboard, and let a tool check that it’s 17 valid characters.

4. Rounding or omitting the odometer

“About 60,000 miles” isn’t acceptable — federal law requires the exact reading for vehicles under 20 years old. Fix: Enter the precise number shown, and note if the odometer has rolled over.

5. Understating the price

Writing a lower price to dodge sales tax is tax fraud, and many states compare your figure to book value and tax the higher amount anyway. Fix: Record the real price paid. If it’s a genuine gift, mark it as a gift.

6. Forgetting the “as-is” clause

Without an “as-is” statement, a buyer may later claim the seller is responsible for a problem. Fix: Include a clear “sold as-is, no warranty” clause for private sales (our tool adds one by default).

7. Missing a signature

A document signed by only one party — or not signed at all — is weak evidence and often unacceptable. Fix: Both buyer and seller sign and date.

8. Skipping a required notary

In Louisiana, Ohio, Pennsylvania, North Carolina, and Kentucky, the vehicle title transfer must be notarized. Sign before a notary or the DMV will reject it. Fix: Check your state’s requirement and don’t sign the title until you’re at the notary if yours is on the list.

9. Not filing the release of liability

Sellers who skip the notice of sale / release of liability can stay on the hook for tickets, tolls, or an accident the buyer causes. Fix: File your state’s release-of-liability form right after the sale.

10. Keeping only one copy

If only the buyer has the document, the seller has no proof of the sale; if only the seller does, the buyer can’t register. Fix: Make at least two signed copies (three for a vehicle, so the DMV gets one).

Avoid all ten at once

Most of these mistakes come from a blank template and no guidance. A guided tool that validates the VIN, demands the exact odometer, requires every field, and adapts to your state prevents almost all of them. Make an error-free document with our free generator, and review a completed example to see what “done right” looks like.