Mick 
On my bill of Sale (State BMV form) I do the following if they want to sell a vehicle but the title is lost:
1. Write down something to the effect of: I the seller on this bill of sale swear that I am the legal owner of said vehicle, I affirm that there are no liens on the vehicle and that I have the right to sell/dispose of this vehicle. I also am releasing the buyer on this Bill of sale of any liability for the use and/or disposal of said vehicle
2. I make them give me their drivers license, I write down the # and have that on the Bill of Sale
3. I then have them sign and print their name and date it (The Handwritten part)
4. This is in addition to them signing the form part above as the owner!
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