Colorado Bill of Sale Template

What a bill of sale does in Colorado

A bill of sale records the transfer of ownership of personal property — a car, a boat, a piece of equipment, livestock, sometimes a firearm — from one private party to another. In Colorado, the document acts as both a receipt for the buyer and a release of liability for the seller. Once signed, ownership has changed; the seller is no longer the legal owner and is no longer liable for what the buyer subsequently does with the item.

Colorado's position is that Colorado Revised Statutes § 42-6-116 governs the form and effect of these transfers. The bill of sale itself does not transfer title to a vehicle on its own — that requires the Colorado DMV to record the change of ownership using the DR 2116.

What to include

• date
• seller name
• buyer name
• item description
• price

For a vehicle, also include: vin, odometer, year, make, model.

How Colorado differs

Colorado uses DR 2116 as the bill of sale for vehicle transfers; no notarization required. For comparison, most US states do not require notarization, although having a notary or witness adds evidentiary weight if a dispute later arises.

Title transfer & registration in Colorado

A bill of sale documents the deal, but for a vehicle it is only one step in changing the registered owner. In Colorado, the general process runs in the same order: the seller signs over the certificate of title, both parties complete and sign the bill of sale (and DR 2116, where Colorado provides an official form), and then the buyer submits the transfer and registers the vehicle.

The buyer takes the assigned title and bill of sale to your local Colorado DMV, applies for a new title in their own name, registers the vehicle, and pays the applicable titling and registration fees plus any tax due. Most states set a statutory window — often around a month — within which the buyer must complete the transfer, so file promptly to avoid late penalties. Confirm the current Colorado fees, deadlines, and form versions on the official DMV page before you go.

Notarization & witnesses

Colorado does not require the bill of sale to be notarized for a private vehicle sale. You can still choose to have it notarized at a bank, UPS Store, or law office — it is never wrong, and a notary's seal adds evidentiary weight if the transaction is ever questioned.

Sales & use tax

In the US, the buyer — not the seller — normally pays state and local use tax when they title and register the vehicle, and it is typically calculated on the purchase price. That is exactly why the price written on the bill of sale matters: your local Colorado DMV may use the stated figure (or a fair-market value) to assess what is owed. Record the real, agreed price honestly. Exact rates, exemptions, and any local add-ons vary, so confirm them on the official Colorado DMV page before registering.

Keep a copy & dispute evidence

Both the buyer and the seller should keep a signed copy of the bill of sale — ideally each retaining an original, or a clear scan or photograph of the fully signed document. For the seller it proves the date ownership and liability passed; for the buyer it proves what was paid and on what terms. Store it together with any handover photographs and a note of the odometer reading at sale. If a dispute arises later, this contemporaneous paperwork is the most persuasive evidence either party can bring to Colorado's civil or small claims court.