Guide

Bill of Sale vs. Title: What's the Difference?

Updated August 7, 2026 · About 5 min read

A bill of sale and a title are two different documents that people often mix up — especially when buying or selling a car. One records that a sale happened; the other proves who legally owns the property. Here's how they differ, and why a vehicle sale usually needs both.

At a glance

	Bill of Sale	Title
What it is	A record of a transaction between a buyer and seller	An official state document proving legal ownership
Who issues it	Created by the buyer and seller	Issued by the state (DMV)
Main job	Documents the price, terms, and date of sale	Establishes and transfers legal ownership
Used for	Proof of purchase, protecting both parties	Registration and title transfer of titled property
Applies to	Almost anything — cars, boats, furniture, animals	Titled property only — mainly vehicles and boats

What is a title?

A title (or "certificate of title") is a government-issued document that proves who legally owns a specific piece of titled property — most commonly a vehicle. It lists the owner and key identifying details like the VIN. When you sell a titled vehicle, signing the title over to the buyer is the step that actually transfers legal ownership. The buyer then takes the signed title to the DMV to register the vehicle and get a new title in their name.

What is a bill of sale?

A bill of sale is the record of the transaction itself. It captures who sold what to whom, for how much, and on what date and terms. Unlike a title, it isn't issued by the state — the buyer and seller create and sign it. It works for practically any sale, including items that never have a title at all, like furniture, electronics, or livestock. If you'd like a refresher on writing one, see our guide on how to write a bill of sale.

The key difference

Here's the simplest way to remember it:

The title answers "Who owns this?" — it's about legal ownership.
The bill of sale answers "What was the deal?" — it's about the transaction.

For a titled vehicle, transferring the title is what legally moves ownership. The bill of sale supports and documents that sale but doesn't replace the title.

Do you need both to sell a car?

Usually, yes. For a private used-car sale you generally want to:

Sign over the title to the buyer — this transfers legal ownership.
Complete a bill of sale — this records the price, odometer, condition, and terms, and protects both parties.
Follow your state's DMV process for registration and the new title.

For more on the car-specific side, see Do you need a bill of sale for a used car?

Need the bill of sale part?

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What if there's no title?

Two very different situations get lumped together here:

Titled property with a lost title

If you're selling a car and the title is lost, a bill of sale alone generally isn't enough for the buyer to register it. The seller usually needs to request a duplicate title from the DMV before completing the sale.

Property that never had a title

Most items — furniture, tools, electronics, jewelry, general goods — don't have titles at all. For these, the signed bill of sale is the record of ownership transfer. That's exactly why a bill of sale is so useful: it works even when there's no title in the picture.

Check your state's rules. Title and registration requirements vary by state and change over time. For any titled vehicle or boat, confirm the exact process with your state's DMV before completing a sale.

Frequently asked questions

Is a bill of sale the same as a title?

No. A title is a state-issued document proving legal ownership of titled property. A bill of sale is a record of the transaction, created by the buyer and seller. They serve different purposes and, for a car, you typically need both.

Can a bill of sale prove ownership?

For untitled items, yes — the signed bill of sale is generally the record of ownership transfer. For titled property like vehicles, the title is the primary proof of ownership, and the bill of sale supports it.

Which one do I give to the DMV?

Typically both when registering a vehicle: the signed title to transfer ownership, and the bill of sale to document the sale and price. Requirements vary by state, so check with your DMV.

Do I need a title for a boat or trailer?

Many states title boats and trailers as well, though thresholds vary (some states title boats only above a certain length or motor size). When a title exists, treat it like a vehicle — sign it over and pair it with a bill of sale.

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