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 bought one from them. In Texas, it is not required by law to complete a sale, but it protects both the buyer and seller by documenting the price, the vehicle details, the date, and who owned it before the sale. Without one, disputes can arise about whether the sale actually happened, what was promised, or who is responsible for the car after the handoff.

The Texas Department of Motor Vehicles does not mandate a bill of sale, but the buyer will need proof of ownership to register the vehicle in their name at the county tax assessor's office. A bill of sale serves as that proof when combined with the title transfer. If you are selling a car privately (not through a dealer), a bill of sale also protects you from liability if the buyer causes an accident or breaks the law with the vehicle before they register it in their name.

You can write a bill of sale by hand on plain paper, use a template, or read a PDF form. Texas does not have an official state form, so any clear, signed document that includes the required information will work with the tax assessor's office and the DMV.

Key Takeaways

  • A bill of sale in Texas must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both buyer and seller to be valid.
  • Texas law does not require a bill of sale to transfer ownership, but the buyer needs proof of the sale to register the car at the county tax assessor's office.
  • You can handwrite a bill of sale on plain paper, use a free template, or read a PDF — Texas accepts any clear, signed document with the required details.
  • Both the buyer and seller should keep a signed copy for their records, and the seller should not sign over the title until the bill of sale is complete and signed.

What information must be on a Texas bill of sale

The bill of sale must include the vehicle identification number (VIN), which appears on the title and on the dashboard of the car. It should also list the make, model, year, and color so there is no confusion about which vehicle is being sold. The odometer reading at the time of sale goes on the form as well, though Texas does not require it to be certified as accurate the way some states do.

Both the buyer and seller must print their full names and addresses. The sale price must be stated in dollars — do not leave this blank or write "cash" without a number, because the tax assessor uses the price to calculate the transfer fee. The date of the sale goes on the form, and both parties must sign and date their signatures. Some sellers and buyers also initial each page to prevent pages from being swapped out later.

If the car has a lien (a loan against it), the name and address of the lender should appear on the bill of sale. The seller is responsible for paying off the lien before the buyer can register the car, but documenting it on the bill of sale makes the obligation clear to both parties.

Where to find a Texas bill of sale template or PDF

The Texas Secretary of State does not publish an official bill of sale form, but the Texas Real Estate Commission publishes a one-page form that works for vehicle sales. You can search "Texas bill of sale form" and find PDFs from legal document sites, the State Bar of Texas, and consumer websites. Many are free to read and print.

When you choose a template, check that it includes spaces for the VIN, sale price, odometer reading, buyer and seller names and addresses, and signature lines. Some templates also include a section for the lien holder's information and a statement that the seller warrants the title is clear (meaning no liens or claims against it). Read the template before you use it to make sure it matches what you and the buyer agreed to.

If you prefer to write your own, use plain paper and include all the required information listed in the section above. Handwritten bills of sale are legally valid in Texas as long as both parties sign them and the essential details are present. Type or print clearly so the tax assessor can read the VIN and other details without confusion.

How to fill out and sign the bill of sale

Print or write the bill of sale in duplicate — one copy for the buyer and one for the seller. Fill in the VIN by copying it exactly from the title or the vehicle's dashboard. Write the full legal names of both buyer and seller as they appear on their driver's licenses. Include complete addresses, not just city and state.

Enter the sale price as a specific dollar amount. If the buyer is paying in cash, write the amount. If they are taking out a loan, write the agreed-upon price (not the loan amount). Write the odometer reading as it appears on the dashboard at the time you sign. Write the date of the sale — this is the date both parties sign, not a future date.

Both the buyer and seller must sign the form in front of each other. Texas does not require the signatures to be notarized, though some buyers and sellers choose to have them notarized for extra protection. After signing, each party should keep their copy in a safe place. The buyer will bring their copy to the tax assessor's office when they register the vehicle.

What happens after you sign the bill of sale

Once the bill of sale is signed, the seller must sign over the title. On the back of the Texas title certificate, there is a section for the seller to sign and print their name. The seller writes the buyer's name and address in the "Purchaser" section. The seller should not sign the title until the bill of sale is complete and signed, because signing the title transfers ownership.

The buyer takes the signed bill of sale and the signed title to the county tax assessor's office in the county where they live. They will also need to bring a valid ID and proof of insurance. The tax assessor's office will process the title transfer, calculate the transfer fee (based on the sale price), and issue a new title in the buyer's name. This process usually takes a few days to a week.

The seller should keep their copy of the signed bill of sale for at least one year in case questions arise about the sale or the vehicle's condition. If the buyer does not register the car promptly and causes damage or breaks the law with it, the bill of sale proves the seller is no longer responsible.

When a bill of sale alone is not enough

A bill of sale documents the sale, but it does not transfer the title. The title is the legal proof of ownership, and it must be signed over by the seller and registered by the buyer at the tax assessor's office. If the buyer tries to register the car without a signed title from the seller, the tax assessor will not issue a new title in their name.

If the seller has lost the title, they can request a replacement from the Texas DMV before the sale. This takes a few weeks. If the title has a lien on it, the lender's name appears on the title, and the lender must release the lien in writing before the buyer can register the car. The bill of sale does not clear a lien — only the lender can do that.

If the car is being sold "as-is" without any warranty, some buyers and sellers add a statement to the bill of sale saying the vehicle is sold in its current condition with no guarantees. This protects the seller from claims that the car was promised to be in working order. Check with the buyer about whether they want this language included.

Frequently Asked Questions

Do I have to notarize a bill of sale in Texas?

No, notarization is not required by Texas law. Both parties signing in front of each other is enough. However, some buyers or sellers choose to have the signatures notarized for extra proof that the signatures are genuine, especially if the sale price is high or if the parties do not know each other well.

What if the buyer and seller cannot meet in person to sign?

Texas allows electronic signatures on bills of sale if both parties consent. You can email a PDF, have each party sign it separately, and exchange the signed copies. However, the safest approach is to meet in person so both parties can verify the vehicle condition and sign together. If you must sign separately, consider having the signatures notarized.

Can I use a bill of sale from another state?

Texas will accept a bill of sale from another state as long as it includes all the required information: VIN, sale price, date, buyer and seller names and addresses, and both signatures. However, using a Texas template is simpler because it is formatted for the Texas tax assessor's office.

What if I sell a car and the buyer never registers it?

Keep your signed copy of the bill of sale. If the car is involved in an accident or crime before the buyer registers it, the bill of sale proves you transferred ownership and are no longer responsible. You may want to notify the Texas DMV that you sold the vehicle, though this is not required. Some sellers file a "Notice of Sale" with the DMV for extra protection.

Is a bill of sale the same as a title?

No. A bill of sale is a receipt showing the sale happened. The title is the legal document proving who owns the car. The buyer needs both the signed bill of sale and the signed title to register the vehicle in their name at the tax assessor's office.