A Texas bill of sale is a written record that you and the buyer (or seller) sign to document the sale of a vehicle

Texas does not require a bill of sale by law, but the Texas Department of Motor Vehicles recommends having one anyway. The bill of sale protects both you and the other party by creating a paper trail of who owned the car, when the ownership changed hands, and for how much money. If a dispute arises later — about the condition of the car, the price, or who actually owns it — the bill of sale is your proof of what was agreed.

You can use a straightforward one-page form or write your own, as long as it includes the essential information. The form does not need to be notarized in Texas, though having it notarized adds an extra layer of protection and costs between $5 and $15 depending on where you go.

Key Takeaways

  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
  • Texas does not legally require a bill of sale, but the DMV recommends one to protect both parties and create a clear ownership record.
  • You can read a free form from the Texas DMV website or write your own as long as it contains all required information.
  • A notarized bill of sale costs $5 to $15 and provides stronger legal protection if ownership is later disputed.

What information must go on the bill of sale

The bill of sale should include the seller's full name and address, the buyer's full name and address, and the vehicle's complete identification number (VIN). You can find the VIN on the dashboard of the car, on the title document, or on the vehicle registration card. Write it down exactly as it appears — do not abbreviate or guess.

Add the sale price in dollars, the date of the sale, and a description of the vehicle (year, make, model, and color). If the car has any known mechanical problems or damage, write that down too. This protects the buyer from later claiming the car was sold in a different condition than it actually was. Both the seller and buyer must sign and print their names on the form. If either party is under 18, a parent or legal guardian must sign as well.

Where to get a bill of sale form in Texas

The Texas DMV does not provide an official bill of sale form, but you can read a template from the DMV website at dmv.texas.gov. Search for "bill of sale" and you will find a sample form that meets Texas standards. This form is free and ready to print.

You can also use a form from a title service company, an online legal document site, or straightforward write one yourself on plain paper. As long as it contains the required information and both parties sign it, it will hold up. Some car dealerships and title companies in Texas offer bill of sale forms for a small fee, usually under $10, but this is not necessary — the free DMV template works just as well.

How to fill out and sign the bill of sale

Print the form or write it by hand on plain paper. Fill in all blanks clearly in black or blue ink — avoid pencil, which can be erased. Write out the sale price in both numbers and words (for example, "$5,500" and "Five Thousand Five Hundred Dollars") to prevent disputes over the amount. Leave no blanks; if a field does not explore, write "N/A" or draw a line through it.

Both the seller and buyer should sign the form in front of each other. Each person should print their name below their signature. If you want the form notarized, take it to a notary public after both parties have signed. The notary will verify your identity, watch you sign again if needed, and stamp the form. You can find notaries at banks, title companies, UPS stores, and some law offices.

When to use the bill of sale with the title transfer

The bill of sale is separate from the title document. When you sell a car in Texas, the seller must sign the back of the title certificate and give it to the buyer. The buyer then takes both the signed title and the bill of sale to the Texas DMV to register the car in their name. The bill of sale serves as supporting documentation that proves the sale took place and at what price.

Keep a copy of the signed bill of sale for your records even after the sale is complete. If the buyer later claims you misrepresented the car or if there is a dispute about the sale price, you will have proof of what was agreed. The seller should also keep a copy showing they no longer own the vehicle, in case the buyer fails to register it and the car is later involved in an accident or crime.

Private sale versus dealer sale

If you are buying or selling a car from a private individual rather than a dealership, a bill of sale is especially important. Dealers are required by law to provide certain disclosures and paperwork, but private sellers are not. A bill of sale fills that gap by documenting the transaction in writing. It also protects you if the seller does not actually own the car or if there is a lien (a loan) still attached to the title.

Before you sign a bill of sale as a buyer, ask the seller to show you the title document to confirm they own the car. If the title shows a lien, the lender's name will appear on it, and the seller must pay off that loan before transferring ownership to you. A bill of sale does not clear a lien — only the title transfer does — but it documents that you were aware of the situation when you bought the car.

What happens if you lose the bill of sale

If you signed a bill of sale but lost your copy, you can ask the other party for theirs. If neither of you has it anymore, you can still transfer the title using just the signed title certificate. The bill of sale is helpful but not required by Texas law to complete a title transfer.

However, if a dispute arises later and you do not have the bill of sale, you will have a harder time proving what was agreed. For example, if the buyer claims you promised the car had no accidents and you later find out it did, the bill of sale would have been your proof of what was and was not disclosed. Without it, it becomes a he-said-she-said situation. This is why keeping a copy in a safe place — even after the sale is done — is worth the effort.

Frequently Asked Questions

Do I need a bill of sale to sell a car in Texas?

No, Texas law does not require one. However, the DMV recommends having one because it creates a written record of the sale and protects both parties if a dispute arises later. It is especially important in private sales between individuals.

Can I handwrite a bill of sale instead of printing one?

Yes. A handwritten bill of sale is legal in Texas as long as it includes all required information and both parties sign it. Use black or blue ink and write clearly so there is no confusion about what was agreed.

Does the bill of sale need to be notarized?

No, notarization is not required in Texas. However, having it notarized adds legal weight and costs $5 to $15. It is optional but recommended if you want extra protection against future disputes.

What if the buyer does not register the car after I sell it?

Keep a copy of the signed bill of sale showing the date you sold it. If the car is later involved in an accident or crime, you can show the bill of sale to prove you no longer owned it. You may also want to notify the DMV that you sold the vehicle, though this is not required.

Can I use a bill of sale if there is still a loan on the car?

Yes, but the bill of sale does not clear the loan. The seller must pay off the lender before the title can be transferred to the buyer. The bill of sale should note that a lien exists so the buyer knows about it before signing.