Colorado Bill of Sale Create Colorado Bill of Sale

Colorado Bill of Sale

Updated Mar 13, 2026 5 (1) 0 Downloads

A Colorado Bill of Sale is a legal document recording the transfer of ownership of personal property from a seller to a buyer within the state of Colorado.

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What is a Colorado Bill of Sale?

A Colorado bill of sale serves as a legal instrument recording the transfer of ownership of personal property from a seller to a buyer. This document acts as a receipt and proof of purchase, outlining the specific details of the transaction, the identities of the parties involved, and a description of the item being sold. Residents utilize this form for various private transactions, including the sale of motor vehicles, firearms, livestock, and general personal property, to establish a clear chain of title and protect against future liability claims.

Required Elements

To be legally binding and acceptable for registration purposes in Colorado, the document must contain specific information. The Colorado Division of Motor Vehicles and other state agencies look for the following components:

  • Parties' Identification - Full legal names and physical addresses of both the buyer and the seller.
  • Property Description - Detailed identification of the item, including VIN (for vehicles), HIN (for boats), serial numbers, make, model, and year.
  • Transaction Details - The final purchase price and the date of the sale.
  • Odometer Disclosure - A statement regarding the mileage of a motor vehicle, required for vehicles under 20 years old.
  • Signatures - The handwritten signatures of both parties to affirm the accuracy of the information.

Colorado Vehicle Registration Requirements

When a vehicle is purchased through a private sale, the new owner must complete specific steps to transfer the title and obtain registration. The state enforces strict timelines for this process:

  • Registration Deadline - New owners must register the vehicle within 60 days of the purchase date (C.R.S. § 42-3-103).
  • Late Fees - Failure to register within the 60-day window results in a late fee of $25 per month, up to a maximum of $100.
  • Emissions Testing - Vehicles registered in specific counties (such as Denver, Boulder, and Jefferson) may require a passing emissions test certificate.
  • Proof of Insurance - The buyer must provide evidence of valid insurance coverage meeting state minimums.
  • Secure and Verifiable ID - The applicant must present a valid driver's license or identification card.

Legal Statutes and Regulations

The creation and use of bills of sale in Colorado are governed by various state and federal laws depending on the asset type:

  • Uniform Commercial Code (Sales) - Governs the general sale of goods and the transfer of ownership rights between parties (C.R.S. § 4-2-101 et seq.).
  • Motor Vehicle Registration Laws - Mandates the requirements for titling and registering vehicles purchased via private sale (C.R.S. § 42-3-115).
  • Odometer Disclosure Requirements - Requires sellers to disclose the true mileage of vehicles less than 20 years old (49 CFR § 580.5).
  • Livestock Brand Inspection - Requires a brand inspection certificate for the sale or transport of livestock to prove ownership (C.R.S. § 35-53-105).
  • Vessel Registration and Numbering - Outlines the requirements for registering boats and watercraft with Colorado Parks and Wildlife (C.R.S. § 33-13-103).

How to Complete a Colorado Bill of Sale

Executing this document correctly ensures the smooth transfer of ownership. The process involves the following steps:

Step 1: Negotiate Terms - The buyer and seller agree on the price and method of payment (cash, check, or trade).

Step 2: Gather Information - The seller collects necessary details such as the VIN, hull ID, or serial numbers.

Step 3: Draft the Document - The parties fill out the form with personal information, item description, and purchase price.

Step 4: Sign and Date - Both parties sign the document; notarization is not strictly required by state law but provides additional legal security.

Step 5: Transfer Possession - The seller delivers the item and any associated title documents to the buyer.

As-Is Clauses and Warranties

Most private sales in Colorado are conducted on an "as-is" basis unless otherwise specified. This legal concept has significant implications for both parties:

  • Implied Warranty Disclaimer - An "as-is" clause effectively disclaims implied warranties, meaning the seller guarantees only that they have the right to sell the item.
  • Buyer Responsibility - The buyer accepts the item in its current condition, including all visible and hidden faults.
  • Fraud Exception - Sellers remain liable if they intentionally conceal defects or make false representations about the item's condition.

FAQs

Colorado law does not mandate notarization for a bill of sale to be valid. The Division of Motor Vehicles accepts non-notarized bills of sale for vehicle registration, provided they contain all required information and signatures.
A bill of sale is generally required if the title does not have a dedicated section for the purchase price or if the purchase price is not listed on the title. It serves as proof of the transaction value for calculating sales tax.
A handwritten bill of sale is legally acceptable in Colorado as long as it is legible and includes all necessary details. These details must include the buyer and seller names, vehicle description (VIN, year, make), date of sale, price, and signatures.
Colorado residents have a 60-day grace period from the date of purchase to register a newly acquired vehicle. After this period, late fees will be assessed at a rate of $25 per month up to $100.
While a bill of sale is not strictly mandated by state law for private firearm transfers, Colorado requires background checks for most private sales. A bill of sale is highly recommended to create a record of the transfer and prove that the weapon is no longer in the seller's possession.
Providing a false odometer statement is a violation of both state and federal law. If the odometer reading is known to be inaccurate, the seller must check the "Odometer Reading is not the Actual Mileage" box on the disclosure form.

Colorado Bill of Sale Sample

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COLORADO BILL OF SALE

I. THE PARTIES

This Bill of Sale is made on .

The Seller(s):
Name:
Address:
Phone:
Email:

The Buyer(s):
Name:
Address:
Phone:
Email:

II. LOCATION OF SALE

City:
State: Colorado

III. DESCRIPTION OF PROPERTY

The Seller hereby transfers ownership of the following property to the Buyer:

Type of Property:

Detailed Description:
(Include Make, Model, Year, Serial Numbers, Color, Size, etc., as applicable)

IV. PURCHASE PRICE AND PAYMENT

The Buyer agrees to pay the Seller the following amount for the property:

Total Purchase Price: $

Payment Method:

The Seller acknowledges receipt of the full purchase price.

V. CONDITION OF PROPERTY

The property is sold in "AS-IS" condition. The Seller certifies that they are the legal owner of the property and have the right to sell it. The Seller warrants that the property is free of all liens and encumbrances.

VI. ADDITIONAL TERMS AND INSTRUCTIONS

The following additional terms or special instructions apply to this transaction:

VII. SIGNATURES

Seller Signature:
Signature: _________________________
Print Name: _______________
Date:

Buyer Signature:
Signature: _________________________
Print Name: _______________
Date:

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