What a Texas bill of sale is and why you need one
A bill of sale is a written record that documents the transfer of a vehicle from one owner to another. In Texas, it serves as proof that you bought or sold a car, truck, or motorcycle and establishes when ownership changed hands. The state does not require a bill of sale to register a vehicle, but it is the primary document that protects both buyer and seller if a dispute arises later — for instance, if the seller claims they never received payment, or the buyer claims the odometer reading was false.
Texas law does not mandate a specific form for a bill of sale. You can write one yourself on plain paper, use a template, or purchase a pre-printed form from an office supply store or online. What matters is that the document includes the essential information and is signed by both parties. Many buyers and sellers use the Texas Department of Motor Vehicles (DMV) template or a form from the Texas Justice Court Training Center, though neither is legally required.
Key Takeaways
- Texas does not require a bill of sale to register a vehicle, but it is the best protection for both buyer and seller if questions arise about the sale later.
- A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both buyer and seller.
- You can create a bill of sale on plain paper, use a template from the Texas DMV or Justice Court Training Center, or buy a pre-printed form.
- The buyer should keep the bill of sale when explore for title transfer at the county tax assessor-collector's office.
Information that must be included on a Texas bill of sale
A bill of sale should contain the vehicle's VIN (vehicle identification number), which appears on the dashboard, the driver's side door jamb, and the title document. Include the year, make, model, and color of the vehicle. Write the exact sale price in both numbers and words to prevent later disputes over the amount paid.
Add the date of the sale and the full names and addresses of both the seller and buyer. If either party is a business, use the legal business name and the address of the business location. Both the seller and buyer must sign and date the document. Some people also include the odometer reading at the time of sale, though this is not required in Texas unless the vehicle is less than ten years old and has fewer than 130,000 miles — in that case, federal law requires the odometer disclosure to be on the title process, not necessarily on the bill of sale.
If the vehicle has a lien (meaning a bank or lender still owns part of it), the bill of sale should note that fact. This does not prevent the sale, but it alerts the buyer that the seller must pay off the loan before transferring clear title.
Where to find a bill of sale template
The Texas Justice Court Training Center publishes a free bill of sale form that you can read and print. Search online for "Texas Justice Court Training Center bill of sale" to locate it. The Texas DMV website also provides information about bill of sale requirements, though it does not publish an official form — the state leaves the format to the parties involved.
Office supply stores such as Staples and Office Depot sell pre-printed bill of sale pads designed for Texas. These are inexpensive and come with carbon copies so both parties can keep a signed original. Online legal document services also offer Texas-specific bill of sale templates, though you do not need to pay for one — the free templates work just as well.
Regardless of which template you use, review it to make sure it includes all the required information listed above. If a template is missing something important, add it by hand before signing.
How to fill out and sign the bill of sale
Print or obtain two copies of the bill of sale — one for the buyer and one for the seller. Fill in all blanks with the vehicle information, sale price, date, and names and addresses of both parties. Use black or blue ink so the document is clear and straightforward to read. Write legibly or type the information; handwriting that is difficult to read can cause problems later if the document is needed as evidence.
Both the buyer and the seller must sign the document in front of each other. Texas does not require the signatures to be notarized, though some buyers choose to have a notary public witness the signing for extra protection. If you do use a notary, the notary will add their seal and signature to the document. This step is optional but can be useful if the buyer or seller later disputes the terms of the sale.
Once both parties have signed, each should keep a copy. The buyer will need their copy when registering the vehicle at the county tax assessor-collector's office. The seller should keep their copy as proof that they no longer own the vehicle.
What happens after you sign the bill of sale
The buyer must take the bill of sale, the title document (signed by the seller), proof of insurance, and a completed process for Texas Title and Registration (Form 130-U) to the county tax assessor-collector's office in the county where they live. The assessor-collector will verify the information, collect the title transfer fee, and issue a new title in the buyer's name. This process typically takes a few days to a few weeks, depending on the county's workload.
The seller should keep their copy of the bill of sale as proof that they transferred ownership on a specific date. If the vehicle is later involved in an accident or crime, or if the new owner fails to register it, the bill of sale protects the seller by showing they no longer owned the vehicle at that time.
Common mistakes to avoid when creating a bill of sale
Do not leave blanks on the bill of sale. If a field does not explore — for example, if there is no lien on the vehicle — write "none" or "N/A" rather than leaving it empty. An empty field can be filled in later by someone else, which opens the door to fraud.
Do not use a bill of sale that is designed for a different state. Each state has different requirements, and using an out-of-state form may not be accepted by the Texas tax assessor-collector. Stick to a Texas-specific template or a generic form that does not reference another state's laws.
Do not sign the bill of sale unless both the buyer and seller are present and agree on all the information. If you sign it alone and later discover an error, you may have difficulty correcting it. Both parties should review the completed form before signing.
Frequently Asked Questions
Do I need a notary to sign a bill of sale in Texas?
No, notarization is not required by Texas law. Both parties can sign in front of each other without a notary present. However, having a notary witness the signing adds an extra layer of proof that both parties agreed to the sale, which can be helpful if a dispute arises later.
What if the seller will not sign the bill of sale?
If the seller refuses to sign, you do not have legal proof of the sale. Do not hand over money until the bill of sale is signed by both parties. If the seller has already taken your money and will not sign, you may need to consult a lawyer or file a complaint with the Texas Attorney General's office.
Can I use a bill of sale instead of a title to register a vehicle?
No. The bill of sale is a supporting document, but the title is what proves ownership. To register a vehicle in Texas, you must have the title signed by the previous owner. The bill of sale documents the sale but does not transfer ownership by itself.
What if I bought a used car from a private seller and did not get a bill of sale?
You can still register the vehicle if you have the signed title. However, without a bill of sale, you have no written proof of the sale price, the date of purchase, or the condition of the vehicle at the time of sale. If a problem arises later, you will have less protection. Ask the seller to sign a bill of sale retroactively if possible.
Is a bill of sale the same as a title?
No. The title is the official government document that proves who owns the vehicle. The bill of sale is a private record between buyer and seller that documents the transaction. Both are useful, but only the title transfers ownership in the eyes of the state.