What a Texas bill of sale is and when you need one

A bill of sale is a written record that you sold a vehicle to someone else or bought one from them. In Texas, it documents the sale price, the vehicle details, and the names and signatures of both the buyer and seller. The Texas Department of Motor Vehicles does not require a bill of sale to transfer a title, but you should create one anyway — it protects both parties by proving the sale happened, what was agreed to, and who owns the vehicle now.

You need a bill of sale when you buy or sell a car, truck, motorcycle, or other motor vehicle in Texas. If you're the seller, it shows you no longer own the vehicle and removes your liability for what happens to it after the sale. If you're the buyer, it proves you paid for the vehicle and establishes your ownership claim before you register it with the state.

Texas does not have an official state bill of sale form, but the Texas Department of Motor Vehicles publishes a suggested format that works for most private sales. You can also use a form from a private source, as long as it includes the required information and both parties sign it.

Key Takeaways

  • Texas does not require a bill of sale by law, but creating one protects both buyer and seller by documenting the sale price, vehicle details, and ownership transfer.
  • The Texas Department of Motor Vehicles provides a suggested bill of sale format on its website that you can print and fill out by hand or type.
  • A valid bill of sale must include the vehicle identification number (VIN), sale price, odometer reading, buyer and seller names and addresses, and signatures from both parties.
  • You should keep a copy of the signed bill of sale for your records and bring it with you when you register the vehicle or transfer the title at the county tax assessor's office.

Where to find a Texas bill of sale form

The Texas Department of Motor Vehicles website offers a bill of sale form that meets state standards. You can read it as a PDF, print it, and fill it out by hand. The form is straightforward and includes spaces for all the information Texas requires.

If you prefer a different format, you can find bill of sale templates from legal document websites, office supply stores, or your local county tax assessor's office. Some title companies and car dealerships also provide their own forms. The key is that whatever form you use must include the required information and be signed by both the buyer and seller.

You do not need to have the bill of sale notarized in Texas, though some people choose to do so for extra protection. A notarized bill of sale can be helpful if there is ever a dispute about the sale, but it is not legally required.

What information must be on the bill of sale

The bill of sale must include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code that uniquely identifies the car. You can find the VIN on the vehicle's title, registration, or on the dashboard on the driver's side. The form must also show the vehicle's make, model, and year.

Include the sale price — the actual amount paid for the vehicle. If the vehicle was traded in as part of the sale, note that. The bill of sale should also show the odometer reading at the time of sale, which helps prevent odometer fraud and is required by federal law.

Both the buyer and seller must provide their full legal names, addresses, and phone numbers. The seller should sign and date the form, and the buyer should sign and date it as well. Some forms ask for the driver's license numbers of both parties, which adds another layer of verification.

How to fill out and sign the bill of sale

Print the form or open it on a computer and fill in all the blanks with accurate information. Use black or blue ink if you are writing by hand, and write clearly so there is no confusion about the details. Do not leave any required fields blank.

Both the buyer and the seller must sign the form in front of each other if possible. Each person should sign and print their name, and include the date. If the buyer and seller cannot meet in person, some people photograph or scan the signed form and email it, though an in-person signature is stronger evidence of the transaction.

Make at least two copies — one for the buyer and one for the seller. If you are financing the vehicle through a bank or credit union, the lender may also want a copy. Keep your copy in a safe place with your other vehicle documents.

Using the bill of sale when you register or transfer the title

When you buy a vehicle in Texas, you must register it and transfer the title at your county tax assessor's office within 30 days of the sale. Bring the signed bill of sale with you, along with the vehicle's title (signed by the seller), proof of insurance, and a completed process for Texas Title and/or Registration (Form 130-U).

The tax assessor's office will use the bill of sale to verify the sale price and vehicle details. The sale price on the bill of sale is used to calculate the motor vehicle sales tax you owe, so make sure it is accurate. If the sale price seems unusually low compared to the vehicle's value, the tax assessor may question it.

If you are the seller, keep your copy of the signed bill of sale as proof that you transferred ownership. This protects you if the buyer does not register the vehicle promptly or if there are questions about who owned the vehicle at a certain time.

What happens if you sell a vehicle without a bill of sale

Selling a vehicle without a bill of sale is legal in Texas, but it leaves both parties unprotected. As a seller, you have no written proof that you transferred ownership, which means you could be held liable if the buyer gets into an accident, racks up parking tickets, or commits a crime with the vehicle. As a buyer, you have no proof of purchase, which can complicate registration and create disputes if the seller later claims they still own the vehicle.

Without a bill of sale, it becomes a "he said, she said" situation if there is ever a disagreement about the sale price, the condition of the vehicle, or whether the sale actually happened. A bill of sale is cheap insurance against these problems and takes only a few minutes to create.

Frequently Asked Questions

Does Texas require a bill of sale to transfer a vehicle title?

No, Texas does not legally require a bill of sale to transfer a title. However, you should create one anyway because it protects both the buyer and seller by documenting the sale and proving ownership changed hands. The tax assessor's office will accept a title transfer without a bill of sale, but having one is a best practice.

Can I use a bill of sale from another state?

Yes, you can use a bill of sale from another state as long as it includes all the required information: VIN, sale price, odometer reading, buyer and seller names and addresses, and signatures from both parties. Texas does not have strict rules about the form itself, only about what information must be included.

What if the seller will not sign the bill of sale?

If the seller refuses to sign a bill of sale, that is a red flag. A legitimate seller should have no reason to avoid documenting the sale. Do not complete the purchase until you have a signed bill of sale. If the seller continues to refuse, walk away from the deal.

Do I need to notarize the bill of sale in Texas?

Notarization is not required in Texas, but it adds an extra layer of proof that both parties signed the document. If you are concerned about disputes or want maximum protection, you can have the bill of sale notarized at a bank, title company, or notary public for a small fee.

What should I do with the bill of sale after the sale is complete?

Keep your copy of the signed bill of sale with your vehicle documents — in a file, safe, or safe deposit box. You may need it to prove ownership, resolve disputes, or provide to your insurance company. Do not throw it away, even after you sell the vehicle or it is paid off.