What Is a Colorado Vehicle Bill of Sale?
A Colorado vehicle bill of sale is an official record of a car sale between a buyer and a seller. It shows key details such as the names of both parties, the vehicle’s description, VIN, sale price, and the date of transfer.
It is important to note that the Colorado motor vehicle bill of sale is not the same as a Certificate of Title. Under CO Rev Stat § 42-6-109, a bill of sale shows the deal between the buyer and the seller, but the vehicle only changes ownership when the title is signed and given to the buyer. Therefore, while a bill of sale proves that the sale has occurred and protects both parties, it does not replace the title.
When Do You Need a Colorado Vehicle Bill of Sale?
You can use a Colorado vehicle bill of sale anytime you do a private car sale. It is required to show that the ownership has changed hands. It can also be used as evidence in disputes over the sale, including the price or condition of the car.
For sellers in Colorado, a bill of sale provides some legal protection if the buyer fails to register or insure the vehicle on time. It shows that vehicle ownership has transferred out of the seller’s hands. As a result, the seller won’t be held responsible for accidents or toll violations after the vehicle sale occurs.
For further protection, CO Rev Stat § 42-6-109(3) lets sellers file a Notice of Transfer and Release of Liability with the DMV within 5 days of sale. A Colorado vehicle bill of sale provides the information you need for that form.
The Colorado Department of Revenue may use it to check the purchase price for sales or use tax. This helps the state determine the right amount of tax you owe when registering your car (CO Rev Stat § 39-26-113).
This document can also be temporary proof of ownership if you purchase a vehicle after business hours and must drive it before completing registration (CO Rev Stat § 42-3-115).
Does a Colorado Bill of Sale Need to be Notarized?
In Colorado, a bill of sale for a motor vehicle does not need to be notarized. Notarization is entirely optional. Even though state law doesn’t require it, having a notary witness the signatures can strengthen the document if the sale is ever challenged in court.
It is important to note that while a bill of sale itself does not require notarization, the vehicle title may need to be notarized, especially for older vehicles. If the title cannot be notarized, the state allows you to use a Statement of Transfer (Form DR2445) in connection with the Colorado title form instead.
If you want additional protection, you can also attach a Colorado notary acknowledgement form to your bill of sale. Some counties, such as Chaffee County, provide their own forms, including a notary block. However, a properly completed bill of sale is valid all across Colorado, and notarization is not necessary under state law.
Colorado Motor Vehicle Bill of Sale Sample
View our sample Colorado motor vehicle bill of sale template to learn how to complete your form correctly. Then, use our step-by-step questionnaire to complete the form, and download your bill of sale as a PDF or Word.
