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

A bill of sale is a written record that you sold a vehicle to someone else. In Texas, it documents the transfer of ownership between the seller and buyer. The state does not require a bill of sale to register a vehicle, but it protects both of you by creating proof of the transaction — who owned it, who bought it, when, for how much, and in what condition.

You need a bill of sale when you sell a car, truck, motorcycle, or other motor vehicle to a private person (not a dealer). If you buy or sell through a licensed dealer, the dealer handles the paperwork. If you are trading in a vehicle at a dealership, you do not need a separate bill of sale. But if you are selling directly to another person, a bill of sale is your protection against disputes later.

Texas does not have an official state form for bills of sale. You can write one yourself, use a template, or buy a pre-printed form from an office supply store or online. The Texas Department of Motor Vehicles does not issue or require a specific form, so any clear, signed document that includes the required information will work.

Key Takeaways

  • A bill of sale is a written record of the sale between you and the buyer, and it protects both parties by documenting the price, condition, and date of the transaction.
  • Texas does not require a bill of sale by law, but the buyer will need one to register the vehicle with the Texas Department of Motor Vehicles.
  • You must include the vehicle identification number (VIN), the sale price, the date, and the signatures of both the seller and buyer.
  • Both the seller and buyer should keep a signed copy for their records, and the buyer must bring theirs when registering the vehicle.

What information must be on a Texas bill of sale

The bill of sale must include the vehicle's VIN (vehicle identification number), which is a 17-character code found on the driver's side of the dashboard, on the door jamb, or in your registration paperwork. Without the VIN, the document is incomplete and the buyer cannot register the vehicle. Write it exactly as it appears on the title or registration.

Include the sale price — the amount of money the buyer paid. Write the number in both digits and words (for example, "One thousand five hundred dollars ($1,500)") to prevent disputes. If the vehicle is being given as a gift, write "Gift" or "$0" and make that clear to avoid confusion with the Texas Department of Motor Vehicles.

Add the date of sale, the seller's full name and address, and the buyer's full name and address. Include a brief description of the vehicle — the year, make, model, and color. Both the seller and buyer must sign and date the document in front of a witness or notary public (though a notary is not required by Texas law, it adds legal weight if there is ever a dispute).

You may also note the vehicle's condition (for example, "sold as-is" or "with warranty"), any known defects, the odometer reading, and whether the title is clear or has a lien on it. These details protect the buyer and show you were transparent about what was being sold.

How to write a bill of sale step by step

Start with a heading at the top: "Bill of Sale" or "Motor Vehicle Bill of Sale." Below that, write the date the sale took place.

Write a sentence identifying the seller: "I, [Your Full Name], residing at [Your Address], hereby sell to [Buyer's Full Name], residing at [Buyer's Address], the following vehicle." Then list the vehicle details: year, make, model, color, and VIN.

State the sale price: "The purchase price is [Amount in words] ($[Amount in numbers])." If there are any conditions — such as the vehicle being sold as-is, with known defects, or with a warranty — write those clearly. For example: "This vehicle is sold as-is, with no warranty expressed or implied."

Add a line for the odometer reading: "The odometer reading at the time of sale is [number] miles." Include whether the title is clear or has a lien: "The title to this vehicle is clear" or "This vehicle has a lien held by [Lienholder Name]."

At the bottom, write "Seller's Signature" and leave a blank line, then write the seller's printed name and the date. Do the same for the buyer. If you want a witness, add a line for their signature, printed name, and the date. A notary public can sign and stamp the document, but this is optional in Texas.

Where to get a bill of sale form in Texas

You do not have to use an official form — you can write one by hand or type one yourself. Many people create a straightforward document in Word or Google Docs using the steps above, print it, sign it, and give a copy to the buyer.

If you prefer a pre-made template, the Texas Department of Motor Vehicles website does not provide one, but you can find free templates online through legal document websites, office supply stores, or by searching "Texas bill of sale template." Some templates are free; others cost a few dollars. Any clear, complete template will work as long as it includes the required information.

You can also buy a pre-printed bill of sale form at Office Depot, Staples, or similar stores. These are inexpensive (usually under $5) and come with instructions. The form may have extra fields for information like the odometer reading or lien status, which is helpful but not required.

What happens after both parties sign

Once both you and the buyer have signed the bill of sale, make a copy for yourself and give the original (or a copy) to the buyer. Keep your copy in a safe place — you may need it if there is ever a dispute about the sale, or if the buyer does not register the vehicle and it is later involved in an accident or crime.

The buyer must bring their signed copy of the bill of sale to the Texas Department of Motor Vehicles when they register the vehicle. They will also need the title (which you must sign over to them) and proof of insurance. The bill of sale serves as supporting documentation that the buyer legally owns the vehicle.

If the vehicle has a lien on it (meaning a bank or lender still owns part of it), the buyer cannot register it in their name until the lien is paid off and released. The lienholder's name should appear on the bill of sale so the buyer knows about this before completing the purchase.

Signing over the title at the same time

The bill of sale and the title are two different documents. The title is the official ownership document issued by the Texas Department of Motor Vehicles. You must sign the back of the title to transfer ownership to the buyer — the bill of sale alone does not transfer the title.

When you sign the bill of sale, also sign the back of the title in the space marked "Seller's Signature" or "Signature of Previous Owner." Write the date next to your signature. Some titles have a separate section for the buyer's information; fill that in as well if it is blank.

Give the signed title to the buyer along with a copy of the bill of sale. The buyer will submit both documents to the Texas Department of Motor Vehicles when they register the vehicle. If you do not sign the title, the buyer cannot complete the registration, even with a bill of sale.

Common mistakes to avoid

Do not leave the VIN blank or write it incorrectly. The buyer cannot register the vehicle without it, and the Texas Department of Motor Vehicles will reject the registration if the VIN does not match the title.

Do not forget to sign and date the document. An unsigned bill of sale has no legal weight. Both the seller and buyer must sign; if only one person signs, it is not a complete agreement.

Do not sell a vehicle with an outstanding lien without telling the buyer. If a bank or lender still has a claim on the vehicle, the buyer cannot get clear ownership until the lien is paid off and released. Write the lienholder's name on the bill of sale so the buyer knows what they are getting into.

Do not use the bill of sale as a substitute for signing the title. You must sign both documents for the transfer to be complete. The bill of sale documents the sale; the title transfer documents the ownership change with the state.

Frequently Asked Questions

Does Texas require a notary on a bill of sale?

No, Texas does not require a notary public to sign a bill of sale. A notary is optional but can add legal weight if there is ever a dispute. If you want one, you can visit a bank, credit union, or notary service — most charge $5 to $15 per signature.

What if I lost the title to my vehicle?

You cannot sell a vehicle without the title. Contact the Texas Department of Motor Vehicles to request a replacement title. You will need to fill out Form 130-U (process for Duplicate or Corrected Title) and pay a fee. Once you have the replacement, you can sign it over to the buyer and complete the bill of sale.

Can I sell a vehicle with a lien on it?

Yes, but the buyer must understand that the lien must be paid off before they own it free and clear. The lienholder (usually a bank) must release the lien in writing. Write the lienholder's name on the bill of sale so the buyer knows about this condition before they buy.

Is a bill of sale the same as a title?

No. A bill of sale is a record of the sale between you and the buyer. A title is the official ownership document from the state. You must sign both — the bill of sale documents the transaction, and the signed title transfers ownership to the buyer with the Texas Department of Motor Vehicles.

What if the buyer does not register the vehicle?

Keep your copy of the signed bill of sale. If the vehicle is later involved in an accident, crime, or unpaid parking tickets, you have proof that you sold it and are no longer responsible. The bill of sale shows the date and buyer's name, protecting you from liability.