Do you need a separate bill of sale?
Yes, unless your title has a Transfer/Sale Date section — and a damage disclosure too
Iowa DOT lists a bill of sale among what you give the buyer. Some title versions have a Transfer/Sale Date section you can use as the bill of sale; if yours does not, a bill of sale is still required. Iowa also asks for a damage disclosure statement, completed and given to the buyer, on newer vehicles — it is normally part of the assignment area of the title rather than a separate document. It is not needed for vehicles more than seven model years old, motorcycles, or trucks with a gross vehicle weight rating of 16,000 pounds or more. If the title was issued before Jan. 1, 2005, a separate damage disclosure statement may be needed.
Source: Iowa DOT, Seller's Checklist; Iowa DOT, How to Sell a Vehicle