What a Texas bill of sale is and why you need one
A bill of sale is a written record that you sold a vehicle to someone else. In Texas, it is not required by the DMV to transfer a title, but it protects both the buyer and seller by documenting the sale price, the vehicle details, and who owned it on what date. If you sell a car without one, you have no proof of the transaction if a dispute arises later — and the buyer could face problems registering the vehicle if the seller's name still appears on the title.
The Texas DMV does not provide an official bill of sale form, but you can use any written document that includes the required information. Many sellers use a straightforward template, and some use the form provided by the Texas Department of Motor Vehicles on their website. The document does not have to be notarized to be valid, though notarization adds legal weight if you ever need to prove the sale in court.
Key Takeaways
- A bill of sale documents the vehicle sale and protects both buyer and seller, even though Texas does not require it to transfer title.
- The bill of sale must include the vehicle identification number (VIN), sale price, date of sale, and the printed names and signatures of both buyer and seller.
- You can use any written document or read a template from the Texas DMV website — notarization is optional but recommended.
- The buyer needs the bill of sale and the signed title certificate to register the vehicle with the Texas DMV.
What information must go on a Texas bill of sale
The bill of sale should include the vehicle's VIN (vehicle identification number), the year, make, and model. It must also show the sale price, the date of the sale, and the full printed names and signatures of both the seller and the buyer. Some sellers add the odometer reading on the date of sale, which can be useful if questions arise later about the vehicle's history.
Include the seller's address and the buyer's address so there is no confusion about who is who. If the vehicle has a lien (a loan against it), note that on the bill of sale as well. The document does not need to be fancy — a handwritten bill of sale on plain paper is legally valid in Texas as long as it contains all the required information and both parties sign it.
How to get a bill of sale form
The Texas Department of Motor Vehicles publishes a bill of sale form on their website that you can read and print. Search for "Texas bill of sale" on the DMV website to find the current version. You can also find templates through legal document websites or your bank — many banks offer free templates to customers.
If you prefer not to use a form, you can write your own bill of sale in plain language. The key is to include all the required information and have both parties sign and date it. Keep a copy for your records and give the original to the buyer.
When to sign the bill of sale
Both the seller and buyer should sign the bill of sale at the time of the sale, ideally in front of each other. The seller should sign it before handing over the keys and the title certificate. The buyer should keep the signed bill of sale with the title certificate, because both documents are needed to register the vehicle at the Texas DMV.
If you are buying a used vehicle, do not accept a vehicle without a signed bill of sale. If you are selling, do not release the title or keys until the buyer has signed the bill of sale and you have a copy for your records.
Notarizing a bill of sale in Texas
Notarization is not required by Texas law, but it adds a layer of legal protection. A notary public verifies the identity of both parties and witnesses their signatures, which makes the document harder to challenge later if a dispute arises. If you notarize the bill of sale, both the buyer and seller must be present with valid photo identification.
You can find a notary public at most banks, credit unions, UPS stores, and some law offices. The cost is usually between $5 and $15 per signature. If the sale involves a large amount of money or you are concerned about future disputes, notarization is worth the small expense.
What happens after the bill of sale is signed
Once both parties have signed the bill of sale, the buyer takes it along with the signed title certificate to the Texas DMV to register the vehicle in their name. The seller should keep a copy of the signed bill of sale for their records. If the vehicle has a lien, the lienholder must release it before the title can be transferred — this usually happens when the loan is paid off.
The seller should also remove the license plates from the vehicle before handing it over, unless the buyer is transferring them to the new vehicle. In Texas, license plates stay with the owner, not the vehicle.
Common mistakes to avoid
Do not leave the bill of sale blank or incomplete — fill in all required fields before signing. Do not sign a bill of sale that lists a different price than what you actually agreed to, because it creates a false record. Do not accept a bill of sale that has been altered or crossed out after it was signed, as this raises questions about its validity.
If you are the buyer, do not hand over money until you have a signed bill of sale in your hands. If you are the seller, do not sign the title certificate until you have received full payment and have a signed bill of sale. These steps protect both parties and prevent misunderstandings later.
Frequently Asked Questions
Do I have to notarize a bill of sale in Texas?
No, notarization is not required by Texas law. However, it does provide extra legal protection by having a notary public witness both signatures and verify identity. For most private sales, a signed and dated bill of sale is sufficient.
What if I lose my copy of the bill of sale after I sell the vehicle?
Keep a copy for your records for at least a few years. If you lose it, you can ask the buyer for another copy, but they are not required to provide one. This is why it is important to make a copy before handing the original to the buyer.
Can I use a bill of sale instead of transferring the title?
No. The bill of sale documents the sale, but the buyer still needs the signed title certificate from you to register the vehicle in their name at the Texas DMV. Both documents are required for a complete transfer of ownership.
What if the vehicle has a loan against it?
Note the lien on the bill of sale. The lienholder must sign off on the title release before the buyer can register the vehicle. This usually happens when the loan is paid off. The buyer should not take possession of the vehicle until the lien is cleared.
Is a handwritten bill of sale valid in Texas?
Yes, a handwritten bill of sale is legally valid as long as it includes all required information and both parties sign and date it. You do not need to use a printed form or template.