A Texas bill of sale for a car is a written record that you and the buyer (or seller) sign to document the transfer of ownership
Texas does not have a state-mandated bill of sale form, which means you can write one yourself or use a template, as long as it contains the required information. The document serves as proof of the transaction for both parties and protects you if a dispute arises later. When you sell a car in Texas, the bill of sale becomes part of the paperwork you submit to the Texas Department of Motor Vehicles (DMV) when you transfer the title.
The bill of sale is separate from the title itself. The title is the legal document that proves ownership; the bill of sale is the receipt and agreement that documents the sale. You will need both when transferring ownership.
Key Takeaways
- Texas law does not require a specific bill of sale form, but the document must include the names and addresses of both parties, the vehicle identification number (VIN), the sale price, and the date of the sale.
- Both the seller and buyer must sign the bill of sale in front of a notary public for it to be accepted by the Texas DMV during title transfer.
- The bill of sale protects both parties by creating a written record of the transaction, including the condition of the vehicle and any warranties or "as-is" statements.
- You can read a bill of sale template from the Texas DMV website or create your own, as long as it includes all required information.
- The bill of sale must be presented along with the signed title when you submit the transfer to the Texas DMV.
Required Information on a Texas Bill of Sale
The bill of sale must include the full legal names and addresses of both the seller and the buyer. Use the names exactly as they appear on your driver's license or identification. If there are multiple sellers or buyers, list all of them.
The vehicle identification number (VIN) must be on the bill of sale. You can find the VIN on the title, on the dashboard of the car (visible through the windshield on the driver's side), or on the vehicle registration. The bill of sale should also include the year, make, model, and color of the vehicle, along with the odometer reading at the time of sale.
The sale price must be stated clearly. Write out the amount in both numbers and words to avoid confusion. If the sale price is zero dollars (for example, if you are transferring the car to a family member as a gift), write "zero dollars" or "$0." The date of the sale must also appear on the bill of sale.
Notarization Requirements in Texas
Both the seller and the buyer must sign the bill of sale in front of a notary public. The notary will witness your signatures and add their seal and signature to the document. This notarization is required by the Texas DMV before you can transfer the title.
You can find a notary public at most banks, credit unions, law offices, and UPS stores. Some charge a small fee, usually between $5 and $15 per signature. When you go to the notary, bring a valid photo ID and the unsigned bill of sale. Both parties do not have to be present at the same time, though it is simpler if they are.
After notarization, keep the original bill of sale. You will need it when you go to the DMV to transfer the title. Make copies for your records and for the other party.
What to Include About the Vehicle's Condition
The bill of sale should state whether the vehicle is being sold "as-is" or with any warranties. "As-is" means the buyer accepts the car in its current condition, with no guarantees from the seller about its mechanical or physical state. This protects the seller from future claims about defects or repairs.
If you are the seller and the car has known issues, you may want to list them on the bill of sale to avoid disputes. For example, you might note "transmission makes noise" or "check engine light is on." This does not obligate you to fix anything, but it creates a clear record of what the buyer knew at the time of purchase.
If you are the buyer, you can also use the bill of sale to document any agreements about repairs or conditions. For instance, if the seller agreed to fix the brakes before you take the car, write that on the bill of sale and have both parties initial it.
How to Create or Find a Bill of Sale Template
The Texas DMV does not provide an official bill of sale form, but you can find templates online through the DMV website or through legal document services. A basic template should have spaces for the seller's name and address, the buyer's name and address, the VIN, the vehicle description, the sale price, the date, and signature lines for both parties and the notary.
You can also write a bill of sale from scratch if you prefer. Start with a straightforward format: write "Bill of Sale" at the top, then list the information in a clear order. Make sure the document is legible and that all required fields are filled in before you go to the notary.
Some online legal document services offer Texas-specific bill of sale templates for a small fee. These templates are already formatted to meet Texas requirements and can save time if you are not comfortable writing one yourself.
Submitting the Bill of Sale to the Texas DMV
After the bill of sale is notarized, you will use it along with the signed title to transfer ownership at the Texas DMV. The seller must sign the back of the title in the designated area, and the buyer submits both documents to the DMV to register the vehicle in their name.
You can submit the title transfer in person at a DMV office, by mail, or through an authorized county tax assessor-collector's office. The DMV will keep the bill of sale as part of the transfer record. Processing times vary, but transfers usually take one to two weeks if submitted by mail and are completed the same day if submitted in person.
If you are buying the car, keep a copy of the notarized bill of sale for your records until you receive the new title in your name. This protects you if there are any questions about when you became the owner.
Common Mistakes to Avoid
Do not sign the bill of sale before going to the notary. The notary must witness your signature, so the document must be unsigned when you arrive. Signing it beforehand makes the notarization invalid.
Do not leave any required fields blank. If a field does not explore (for example, if there is no warranty), write "N/A" or "not applicable" rather than leaving it empty. Blank spaces can raise questions at the DMV.
Do not use nicknames or shortened versions of names. The names on the bill of sale must match the names on the driver's licenses and the title exactly. Mismatched names can delay or prevent the title transfer.
Do not forget to include the odometer reading. Texas law requires this information on the bill of sale, and the DMV will ask for it during the transfer.
Frequently Asked Questions
Can I use a bill of sale template from another state?
You should use a Texas-specific template or create one that meets Texas requirements. While a generic template may contain most of the necessary information, it might not include all the details Texas requires, such as the odometer reading or the specific notarization language. Using a Texas template ensures you have everything the DMV needs.
What if the seller and buyer cannot meet in person at the notary?
Both parties do not have to be present at the same time. The seller can sign in front of a notary first, then the buyer can sign in front of a different notary later. Each notary will add their seal and signature. Make sure both notarized signatures are on the same document before you submit it to the DMV.
Do I need a bill of sale if I am transferring the title to a family member?
Yes. Even if you are giving the car as a gift, you still need a notarized bill of sale to transfer the title in Texas. The sale price would be listed as zero dollars, but the document is still required by the DMV.
What happens if I lose the bill of sale after the sale?
If you have already submitted it to the DMV, the agency has a copy on file. If you need another copy, you can request it from the DMV or contact the other party to ask for their copy. Keep copies of all important documents for at least a few years after any transaction.
Can I handwrite the bill of sale?
Yes. A handwritten bill of sale is valid in Texas as long as it includes all required information and is notarized. The document does not have to be typed or printed. Make sure the handwriting is clear and legible so there is no confusion about the details.