California Bill of Sale Template

A bill of sale in California is a legal document that records the transfer of personal property — most commonly a vehicle, boat, or other titled asset — from a seller to a buyer. The document establishes the purchase price, condition, and transfer date, serving as critical evidence for DMV title transfer, sales tax calculation, and liability protection. In California, the CA DMV does not require a bill of sale for title transfer, but strongly recommends one — a completed REG 135 form serves as the official bill of sale. Regarding notarization, not required for vehicle transactions — the seller signs the title certificate, and the buyer submits it to the DMV. California uses REG 135 (Bill of Sale) is the DMV's optional form; the REG 262 (Vehicle/Vessel Transfer and Reassignment Form) handles title transfers. The purchase price stated on the bill of sale directly determines the sales tax owed: buyer pays use tax based on the purchase price or fair market value (whichever is higher) — California use tax rate is the same as the sales tax rate in the buyer's county (7.25%–10.75%).

Without a bill of sale, both parties face significant risks. The seller remains liable for parking tickets, tolls, and accidents involving the vehicle until title transfer is complete. The buyer lacks proof of the agreed purchase price and may be assessed sales tax on the vehicle's full fair market value instead. For vehicles, a bill of sale should always accompany the signed title certificate. For items without titles (furniture, electronics, equipment), the bill of sale is the only legal proof of the transaction. Use our bill of sale generator to create a California-compliant document that protects both parties. If the buyer is financing the purchase, pair it with a promissory note documenting the payment terms.