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To recover a lost title, having a bill of sale is crucial as it shows the transfer of the vehicle. If the bill of sale is lost, other methods can be used such as payment records like checks or credit card receipts, PayPal transfers, or even backing up the sales through previous owners or DMV records. Having proof of the transaction and ownership is key in the title recovery process. Dave at Cartitles.com emphasizes the importance of having a good record of the transfer to yourself to facilitate the title recovery.