Texas Bill of Sale Form – Download Free Template

Buying or selling a car in Texas? In Texas, a bill of sale is essential for documenting a vehicle or vessel transaction. It serves as proof of ownership transfer, protects both parties, and may be needed for registration or taxes.

What is a Texas Bill of Sale?

A bill of sale is a valuable record of a vehicle sale, protecting both the buyer and seller. It includes key details like the sale price, vehicle description, and party information, helping prevent disputes over ownership, payment, or hidden issues. While Texas doesn’t require one, it’s highly recommended.

For sellers, it proves the car was sold “as-is,” protecting them if the buyer gets tickets or has an accident. For buyers, it confirms the deal, preventing payment or ownership disputes. Even though it’s optional, a bill of sale adds security and peace of mind in any private car sale.

Why do Sellers and Buyers Need a Bill of Sale in Texas

In Texas, both sellers and buyers need to have a bill of sale as a form of legal protection, as well as to notify and register the vehicle with the DMV.

For Seller

When you sell an item, a bill of sale is your best protection against problems that might happen after the sale is complete.

Here are more reasons why you should write down the bill of sale as a seller in Texas:

Proves the Sale: It confirms that the transaction happened and clearly shows who the new owner is, which prevents ownership arguments.
Protects Against Liability: It helps ensure you are not legally responsible for any tickets, tolls, or accidents that the item is involved in after the sale.
Documents the Price: It records the official sale price, which helps avoid claims that you overcharged or underpaid.

Without a bill of sale, you are trusting the buyer to handle the title transfer correctly. Keeping a copy is the safest way to prove that the item is no longer your responsibility.

For Buyers

A bill of sale is much more than just a piece of paperwork; it is solid proof of purchase that legally verifies your ownership. If any issues or disputes come up later, this document is crucial evidence.

Having a bill of sale is important for the buyer because it:

Verifies Legal Ownership: It confirms that you legally own the item.
Resolves Disputes: It acts as important evidence if there are disagreements over ownership or the item’s condition, or history.
Smooths Registration: It provides the clear record needed to ensure a smooth registration and title transfer process.
Protects Finances: It helps clarify any existing liens or financial obligations on the item, which protects you from unexpected costs or complications.

The Types of Texas Bill of Sale

While Texas does not have a single, mandatory state-wide bill of sale for all transactions, the documents used generally fall into two main categories: official vehicle forms and general-purpose forms.

General Bill of Sale

Use: This form can be used for selling any kind of personal property, such as equipment, firearms, furniture, or animals.
Recommendation: While the law does not require it for most personal property sales, it is strongly recommended that you have one for all transactions to prevent future disputes and protect yourself legally.

Motor Vehicle Bill of Sale

Purpose: This document is used for cars, trucks, and motorcycles to record the transfer of ownership and is used along with the vehicle’s title.
Private Sales: It acts as a receipt and proof of ownership during private transactions between individuals.
Mandatory Use: A bill of sale is mandatory for registering certain types of vehicles, such as non-titled vehicles (like small trailers) or rebuilt vehicles.
Signatures: Signatures from both the buyer and seller are necessary, but the document does not need to be notarized.
Gifted Vehicles: It can also be used to document when a vehicle is given as a gift.

Vessel Bill of Sale

Requirement: A bill of sale is required for every transfer of ownership for a boat or watercraft in Texas.
Registration: Buyers need this document to register and title the vessel with the Texas Parks and Wildlife Department.
Taxes: The document is also used by the state to help calculate sales tax.

What Should Be Written on the Texas Bill of Sale

In general, a bill of sale usually provides the necessary details to officially document the transaction. This document typically includes:

How to Register a Vehicle in Texas

If you are a new resident, you must register your vehicle within 30 days of moving to the state. The process requires a pre-inspection and a visit to your county tax office.

Get an Inspection: Your vehicle must first pass a safety inspection. If you live in an applicable county, an emissions test is also required.
Gather Documents: Collect the following items:
- Proof of Ownership: The vehicle title or previous registration documents.
- Proof of Texas Insurance: Valid Texas liability insurance.
- Completed Form: The Application for Texas Title and/or Registration (Form 130-U).
- Vehicle Inspection Report (VIR): The report from your completed inspection.
- Your government-issued photo ID.
- Proof of paid sales tax (if applicable).

At the County Tax Office

Submit Documents: Present your completed Form 130-U and all required documents to the tax office clerk.
Pay the Fees: Pay the required registration fees. This includes a base registration fee of $50.75 for most passenger vehicles and any additional county-specific fees.
Receive Registration: Once processed, you will receive your new registration and license plates/stickers.

Texas VIN Check – Verify Vehicle History Before You Buy

If you plan to buy a used vehicle in Texas, make sure you check the VIN and secure the vehicle history report to examine the vehicle’s specifications and its records, like accidents, auctions, or recalls.

Mileage History

Title Brand

Ownership History

Warranty Status

Sales History

Salvage Title

Usage History

Repair Cost

Auction History

Hail Damage

Ownership Duration

Recalls History

Accident History

Flood Damage

Lien & Loans

Maintenance Schedule

Get a Vehicle Bill of Sale by State

Each state has its own requirements for an auto bill of sale. Click below to find the template for your state!

Texas Bill of Sale FAQs

Is a bill of sale required in Texas to sell a car?

No, a bill of sale is not legally required to sell a car in Texas, but it is strongly recommended.

While the state mainly requires a signed title and the seller to submit a Vehicle Transfer Notification within 30 days to the Texas DMV, the bill of sale provides crucial additional protection. It documents the transaction and safeguards both the buyer and the seller against any future liability issues.

Can I write my own bill of sale?

Yes, as long as it includes all necessary details like buyer and seller info, vehicle details, price, date, and signatures to comply with the state’s rules to be legally valid. You can either handwrite the bill of sale form or use a template like the one provided by Texas DMV.

Do I need a notary for a bill of sale in Texas?

No, a notary is not required for a bill of sale in Texas, but having it notarized is recommended because it adds an extra layer of verification and legal protection. The state does not require notarization for a bill of sale, but it does mandate it for certain other transactions, such as real estate.

How do I prove I sold my car?

To prove you sold your car, you must keep copies of the signed-over car title and a bill of sale that details the transaction. It is also very important to submit a Notice of Transfer and Release of Liability form to your state’s DMV as soon as you can. This officially transfers all legal responsibility to the buyer.

What if the buyer doesn’t transfer the title?

If the buyer does not transfer the title, the seller will still be liable for the parking ticket, accident, or other legal issues tied to the vehicle. If you are a seller, make sure to file a Notice of Transfer and Release Liability.

What is the difference between a TX bill of sale and title?

The bill of sale is not a form of title, but the bill of sale can be used as proof when applying for a title in the DMV. The bill of sale validity depends on the Its validity depends on whether it includes all required details, such as the buyer and seller information, vehicle description, and signatures.