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

The bill of sale proves that money or value changed hands and that ownership moved from one person to another. Texas does not have a single state-mandated form, but the document must contain specific information for the Texas Department of Motor Vehicles to process a title transfer. Without it, the new owner cannot legally register the vehicle in their name, and you remain liable if the car is involved in an accident or crime after the sale.

The bill of sale is separate from the title itself. The title is the state document that names the legal owner; the bill of sale is the receipt and proof of the transaction. You need both to complete a legal sale in Texas.

Key Takeaways

  • A Texas bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the printed names and signatures of both the seller and buyer.
  • Texas law does not require a specific form, but the document must be notarized if the buyer intends to transfer the title without the seller present.
  • The seller should keep a copy of the signed bill of sale as proof they no longer own the vehicle and are not responsible for it after the sale date.
  • The buyer must present the bill of sale to the Texas DMV along with the title and other documents when registering the vehicle in their name.

What information must be on the bill of sale

The bill of sale must clearly identify the vehicle and the people involved in the transaction. Include the vehicle identification number (VIN), the year, make, model, and color. Write the full legal names of both the seller and the buyer, along with their addresses. The sale price must be stated in dollars, even if the transaction involved a trade-in or partial payment in goods.

Add the date the sale took place. Both the seller and buyer must sign and print their names on the document. If either party is a business or dealership, the person signing must print their title (such as "Owner" or "Sales Manager") below their name. The document does not need to be notarized unless the buyer plans to have someone else handle the title transfer on their behalf.

When you need a notarized bill of sale

A notarized bill of sale is required only in specific situations. If the buyer cannot appear in person at the Texas DMV to transfer the title, they may authorize someone else to do it on their behalf. That authorized person will need a notarized bill of sale to prove they have permission to act for the buyer. The notary public must witness both the seller and buyer signing the document.

If you are selling the vehicle privately and both parties will be present at the DMV, notarization is not legally required. However, some buyers request it as extra protection, and some title companies recommend it as standard practice. A notary public is available at most banks, credit unions, and UPS stores for a small fee, usually between five and twenty dollars.

How to write a bill of sale in Texas

You can write the bill of sale by hand on plain paper or type it on a computer. There is no requirement to use a specific form or template, though many people read a Texas bill of sale template from the DMV website or a legal document site for consistency. The document must be legible and include all the required information listed above.

Write clearly and avoid crossing out or erasing information. If you make a mistake, start over rather than trying to correct it, because alterations can raise questions during the title transfer. Both parties should receive a signed copy. Keep your copy in a safe place for at least a few years in case questions arise about the sale.

What happens after you sign the bill of sale

Once both parties have signed, the buyer becomes the legal owner of the vehicle, even though the title has not yet been transferred to their name. The seller is no longer responsible for the vehicle after the sale date on the bill of sale. If the car is involved in an accident, parking violation, or crime after that date, the seller should not be held liable because the bill of sale proves ownership transferred.

The buyer must take the signed bill of sale, the current title, proof of insurance, and a completed process for Texas Title (Form 130-U) to a Texas DMV office or an authorized county tax assessor-collector office. The buyer will pay a title transfer fee, which varies by county but is typically between thirty and sixty dollars. The new title will be mailed to the buyer's address within two to four weeks.

Protecting yourself as the seller

Keep a photocopy of the signed bill of sale for your records. This protects you if the buyer later claims they never received the vehicle or if the vehicle is used in a crime. The bill of sale with your signature and the buyer's signature proves you completed the sale on a specific date.

Do not release the title to the buyer until you have received payment in full. If the buyer is paying by check, wait for the check to clear before handing over the title. If you are selling to a dealership, they will handle the title transfer, but you should still receive a copy of the bill of sale showing the transaction was complete. Never sign a blank bill of sale or one with missing information.

What to do if the buyer does not transfer the title

If weeks or months pass and the buyer has not registered the vehicle in their name, you may still appear as the owner on state records. This can cause problems if the vehicle is involved in an accident or if parking tickets or tolls are issued. Contact the buyer and ask them to complete the title transfer when ready.

If the buyer refuses or cannot be reached, you can file a report with the Texas DMV stating that you sold the vehicle and provide a copy of the signed bill of sale. The DMV can then remove you from the title based on the bill of sale date. Keep trying to contact the buyer first, because filing a report takes time and may delay your release from liability. Having that signed bill of sale is your strongest proof that the sale occurred and that you are no longer responsible for the vehicle.

Frequently Asked Questions

Can I sell a vehicle without a bill of sale in Texas?

Legally, you can, but you should not. Without a bill of sale, there is no written proof that the sale occurred or when it occurred. If the buyer does not transfer the title and the vehicle is involved in an accident or crime, you may be held liable. A bill of sale protects both parties and is required by the DMV for the buyer to register the vehicle.

What if I lost the title but still have the bill of sale?

The buyer will need both the bill of sale and a duplicate title to transfer ownership. They can request a duplicate title from the Texas DMV by submitting an process for Duplicate or Corrected Title (Form 130-U) and paying a fee. The bill of sale alone is not enough to complete the title transfer.

Do I need a bill of sale if I am trading in my vehicle at a dealership?

No. Dealerships handle trade-ins differently and do not require a separate bill of sale. The dealership will provide you with paperwork showing the trade-in value and will handle the title transfer on their end. You will sign documents as part of the purchase agreement for the new vehicle.

Can I use a bill of sale from another state?

A bill of sale from another state may be accepted by the Texas DMV if it contains all the required information, but it is safer to use a Texas bill of sale to avoid delays or questions. The form itself does not have to be state-specific, but using a Texas template ensures you include everything the DMV expects to see.

What if the buyer and I disagree on the sale price?

Write the price that both parties agreed to on the bill of sale. If there is a disagreement, do not sign the bill of sale until you both agree on the amount in writing. The price on the bill of sale is the official record of the transaction and is used to calculate title transfer fees and taxes.