What a Texas bill of sale is and why you need one
A bill of sale is a written record that you sold a car to someone else, or that someone sold it to you. In Texas, it is not required by law to transfer ownership of a vehicle — the title document itself does that work — but a bill of sale protects both the buyer and seller by creating a paper trail of the transaction. It shows the date of sale, the vehicle details, the price paid, and the signatures of both parties.
If you are the seller, a bill of sale proves you no longer own the car on a specific date. This matters because you remain liable for anything that happens to the vehicle after you sell it — accidents, parking tickets, tolls — until the buyer registers it in their name. If you are the buyer, a bill of sale is your receipt and your proof of ownership before the title is officially transferred. It also protects you if the seller claims later that the car was stolen or that you still owe them money.
Texas does not have a single official bill of sale form that you must use. You can write one yourself, read a template from the Texas Department of Motor Vehicles website, or use one provided by a dealership or private seller. The form does not need to be notarized, though having it notarized adds a layer of legal weight if a dispute arises later.
Key Takeaways
- A bill of sale is not legally required in Texas but protects both buyer and seller by documenting the sale date, vehicle details, price, and signatures.
- The seller remains liable for the vehicle until the buyer registers it, so a bill of sale proves when ownership transferred.
- You can write your own bill of sale, use a template from the Texas DMV, or use one provided by a dealer — no official state form is required.
- The bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, and the printed names and signatures of both buyer and seller.
- Keep a copy for your records; the buyer will need theirs when they register the vehicle with the Texas DMV.
What information must go on a Texas bill of sale
Whether you write your own or use a template, include these details: the date of sale, the full legal names and addresses of both the buyer and seller, the vehicle's year, make, model, and color, the vehicle identification number (VIN), the current odometer reading, and the sale price. If the sale price is zero dollars (a gift between family members, for example), write "gift" or "$0" — do not leave it blank.
Add a line for the seller to state whether the vehicle has any known mechanical problems or damage. This is not required by law, but it protects the buyer and gives the seller a chance to disclose issues upfront rather than face a dispute later. Both the buyer and seller must print their names and sign the document. If either party is a business or organization, the person signing should print their title (owner, manager, authorized agent) below their name.
Some templates include a line for the odometer reading and a checkbox for the seller to certify that the mileage is accurate. This is useful because it creates a record of the vehicle's condition at the time of sale and can help protect the buyer if the odometer was tampered with.
How to fill out a bill of sale correctly
Start with the date at the top. Use the actual date the sale occurred or the date both parties signed, not a future date. Write out the full legal names of the buyer and seller — the names that appear on their driver's licenses — and their current mailing addresses. Do not use nicknames or abbreviations.
For the vehicle section, copy the VIN from the title document or from the dashboard (visible through the windshield on the driver's side). Write out the year, make, and model in full — for example, "2018 Honda Civic" rather than "18 Civic." Include the color and the current odometer reading. If you do not know the exact mileage, write "unknown" rather than guessing.
Write the sale price in both numbers and words to avoid confusion — for example, "$5,500 (five thousand five hundred dollars)." Both the buyer and seller should sign and print their names in ink. If either party cannot be present, some people use a notary to witness the signature, though Texas law does not require this. Do not sign until both parties have reviewed the document and agreed to all the terms.
When the seller should give the bill of sale to the buyer
The bill of sale should be signed and handed over at the time of the sale, when the keys and title are exchanged. The buyer needs a copy to bring to the Texas DMV when they register the vehicle. The seller should keep a copy for their records — this is your proof that you sold the car on a specific date and are no longer responsible for it.
If you are buying a car from a private seller, ask for the bill of sale before you hand over payment. If you are selling a car, do not release the keys or title until the bill of sale is signed by both parties. If the transaction happens online or by mail, the bill of sale can be signed and exchanged electronically, but both parties should print and keep a physical copy.
How the buyer uses the bill of sale at the Texas DMV
When you buy a car in Texas, you have 30 days to register it with the Texas Department of Motor Vehicles. You will need the signed bill of sale, the title document (signed by the seller), proof of insurance, and a completed process for Texas Title and/or Registration (Form 130-U). The bill of sale serves as proof that you purchased the vehicle and establishes the date of ownership transfer.
If the title is not available at the time of registration — for example, if the seller has not yet received it from their lender — you can still register the vehicle using the bill of sale and a completed process for a Duplicate or Corrected Title (Form 130-U). The DMV will issue you a temporary registration while the title is being processed.
What happens if there is no bill of sale
If you buy or sell a car without a bill of sale, you still own or do not own the car — the bill of sale does not create ownership, the title does. However, without a bill of sale, you have no written proof of when the sale occurred or what was agreed to. This creates problems for both parties.
A seller without a bill of sale cannot prove they no longer own the vehicle on a specific date. If the buyer does not register the car quickly and gets into an accident or racks up parking tickets, those liabilities may still fall on the seller. A buyer without a bill of sale has no receipt and no written record of the price paid or the vehicle's condition at the time of purchase. If a dispute arises — the seller claims the car was stolen, or the buyer discovers hidden damage — there is no document to settle the disagreement.
Creating a bill of sale takes 10 minutes and costs nothing. It is one of the simplest ways to protect yourself in a vehicle transaction.
Frequently Asked Questions
Do I need a notary to sign a bill of sale in Texas?
No. Texas law does not require a bill of sale to be notarized. However, having a notary witness the signatures adds legal weight if a dispute arises later. Some people choose to do this, especially for high-value vehicles or when the buyer and seller do not know each other well.
What if the seller will not give me a bill of sale?
You should not complete the purchase without one. A bill of sale is your only written proof that you bought the vehicle and what you paid for it. If the seller refuses, that is a red flag — they may be hiding something or planning to claim the car was stolen later. Walk away from the deal.
Can I use a bill of sale from another state?
Yes, but it must include all the information required for a Texas transaction: the VIN, odometer reading, sale price, and signatures of both parties. When you register the vehicle in Texas, the DMV will accept any bill of sale that documents the sale, regardless of the form used.
What if I sold a car but the buyer has not registered it yet?
Keep your copy of the signed bill of sale. It proves you sold the vehicle on a specific date and transferred ownership. If the buyer gets into an accident or receives a ticket before registering, you can show the bill of sale to prove the car was no longer yours. This is why keeping a copy is critical.
Is a bill of sale the same as a title?
No. The title is the legal document that proves ownership of the vehicle. The bill of sale is a receipt that documents the sale transaction. Both are important: the title transfers ownership, and the bill of sale proves when and under what terms the transfer happened.