What a Texas bill of sale does and when you need one
A bill of sale is a written record that you sold a vehicle and the buyer received it. In Texas, it is not required by law to transfer ownership — the title document itself does that — but a bill of sale protects both you and the buyer by creating a paper trail of the transaction. It shows the sale price, the date, the vehicle details, and who owned it before and after the sale.
You should use a bill of sale whenever you sell a car privately (not through a dealer). Even if the buyer is a friend or family member, a bill of sale prevents misunderstandings later. If the vehicle is involved in an accident or crime after you sell it, a bill of sale proves you no longer owned it. For the buyer, it documents what they paid and protects them if the title has a lien they did not know about.
Texas does not have an official state form for a bill of sale, but the Texas Department of Motor Vehicles recognizes standard bills of sale that include the required information. You can write one yourself, use a template, or buy a pre-printed form from an office supply store.
Key Takeaways
- A bill of sale is not legally required in Texas but protects both seller and buyer by documenting the sale price, date, and vehicle details in writing.
- The bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the printed names and signatures of both the seller and buyer.
- You can write a bill of sale yourself, use a free template, or purchase a pre-printed form; Texas does not mandate a specific official form.
- The buyer will need the bill of sale when they register the vehicle with the Texas Department of Motor Vehicles, even though the title document is what transfers ownership.
What information must go on a Texas bill of sale
The bill of sale should include the vehicle identification number (VIN), which appears on the title and on the dashboard of the car. It should also show the year, make, model, and color so there is no confusion about which vehicle was sold. Include the odometer reading at the time of sale, the sale price in dollars, and the date of the transaction.
Both the seller and buyer must print their full names and sign the document. Include the seller's address and the buyer's address. If either party is a business rather than an individual, use the business name and the name of the person signing on behalf of the business. Some people also note the condition of the vehicle (for example, "as-is") and whether any warranties are included, though this is optional.
Do not leave the sale price blank or write "gift" if money changed hands — the Texas Department of Motor Vehicles uses the stated price to calculate the motor vehicle sales tax that the buyer owes. If you actually did give the vehicle as a gift, you can write "gift" or "$0," but the buyer may still owe use tax depending on their situation.
How to write a bill of sale yourself or use a template
If you write one yourself, use plain language and include all the information listed above. You can type it in a word processor or write it by hand. Both are acceptable in Texas. The document does not need to be notarized, though some people choose to have it notarized for extra protection.
Free templates are available from the Texas Department of Motor Vehicles website and from legal document sites. These templates include all required fields and are formatted in a way that the DMV will recognize. Using a template takes the guesswork out of what to include and usually takes less than five minutes to fill in.
Pre-printed bill of sale forms are sold at office supply stores and online retailers for a few dollars. These are also acceptable and often include space for odometer readings and condition notes. Whether you write it yourself, use a template, or buy a form, the content is what matters — not the format.
When to sign the bill of sale and what happens next
Sign the bill of sale at the time of the sale, ideally in front of a witness or notary, though neither is required by law. Both the seller and buyer should receive a copy. Keep your copy for your records in case questions arise later about when you sold the vehicle or what price was agreed upon.
The buyer will take their copy of the bill of sale to the Texas Department of Motor Vehicles when they register the vehicle and explore for a new title. The DMV does not need the original bill of sale — a photocopy is fine. The buyer will also need the title document signed by you, proof of insurance, and payment for registration and title fees.
As the seller, your responsibility ends once you sign the title over to the buyer and provide the bill of sale. After that, the buyer owns the vehicle and is responsible for registering it. If you are selling a vehicle with an outstanding loan, the lender must sign off on the title before the buyer can register it in their name.
Selling a vehicle with a lien or loan
If you still owe money on the car, the lender holds the title as security. You cannot straightforward sign the title over to the buyer — the lender must release the lien first. Contact your lender and ask for a lien release or payoff letter. The payoff letter shows exactly how much you owe and how long the lender will hold the title after you pay off the loan.
In some cases, you and the buyer can arrange for the sale proceeds to pay off the loan directly. The lender releases the title once the payoff amount is received, and then you sign the title over to the buyer. This usually happens at a bank or credit union. The bill of sale still documents the transaction between you and the buyer, but the title cannot transfer until the lien is cleared.
If you sell the vehicle before the loan is paid off without arranging a lien release, the buyer cannot register it in their name, and you remain legally responsible for the debt. This is why the bill of sale is important — it shows the buyer knew the terms of the sale and what they were purchasing.
What to do if you lose the bill of sale or need a copy later
If you signed a bill of sale but lost your copy, contact the buyer and ask for a photocopy of theirs. If you cannot reach the buyer or they no longer have it, you can write a new one based on your memory of the sale, sign and date it, and keep it for your records. This is not as strong as the original, but it is better than nothing if you need to prove when you sold the vehicle.
If someone claims you still own a vehicle you sold years ago — for example, if the buyer never registered it and it was involved in an accident — a bill of sale is your proof that you transferred ownership. Even a photocopy or a reconstructed bill of sale is useful evidence, though an original signed document is stronger.
The Texas Department of Motor Vehicles does not keep copies of bills of sale on file. Only the title document is recorded with the state. This is why keeping your own copy is important.
Frequently Asked Questions
Do I have to notarize a bill of sale in Texas?
No, notarization is not required by Texas law. However, having a notary witness the signatures adds an extra layer of protection, especially if the sale is for a large amount of money or if you think there might be disputes later. A notary costs between $5 and $15 per signature.
What if the buyer and I agree on a price but I want to write a lower price on the bill of sale to reduce their taxes?
Do not do this. The bill of sale must show the actual sale price. Falsifying the price to reduce the buyer's tax liability is tax fraud and can result in penalties for both of you. The Texas Department of Motor Vehicles may also investigate if the stated price seems unreasonably low for the vehicle.
Can I sell a car without a bill of sale?
Technically yes, because Texas law does not require one. However, it is a bad idea. Without a bill of sale, you have no proof you sold the vehicle, and the buyer has no proof of what they paid or the condition of the car. If the vehicle is later involved in an accident or crime, you could still be held liable because there is no documentation showing the sale occurred.
What if the buyer never registers the vehicle in their name?
That is the buyer's responsibility, not yours. However, if the vehicle is involved in an accident or crime and the buyer never registered it, you may be contacted as the last registered owner. A bill of sale proves you sold it and transferred ownership. Without one, you could face legal liability. Always keep your copy.
Do I need a bill of sale if I am trading in my car at a dealership?
No. Dealerships handle their own paperwork and do not use a bill of sale. The dealership will have you sign the title and other documents as part of the trade-in process. A bill of sale is only for private sales between individuals.