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 it protects both the buyer and seller by creating a dated, signed record of the transaction.
Texas law does not require a bill of sale to transfer vehicle ownership — the title document itself is what the state uses to record who owns the vehicle. However, a bill of sale is practical for several reasons: it shows the purchase price and condition of the vehicle at the time of sale, it documents the date the ownership changed hands, and it can protect you if a dispute arises later about whether the sale actually happened or what was agreed to.
Many buyers use a bill of sale to show their insurance company and the Texas Department of Motor Vehicles (TXDMV) what they paid for the vehicle, which affects registration fees and insurance rates. Sellers use it to prove they no longer own the vehicle if the buyer fails to register it or gets into an accident before transferring the title.
Key Takeaways
- A bill of sale is a written record of a car sale that both buyer and seller sign; it is not required by Texas law but is useful for protecting both parties.
- The document should include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the buyer and seller.
- You can create a bill of sale using a printable template, by writing one yourself on plain paper, or by using a form provided by a title service or the TXDMV.
- A bill of sale does not transfer the title itself — you must still complete the title transfer through TXDMV, which is a separate step.
- Keep a copy of the signed bill of sale for your records, and give the other copy to the other party.
What information must be on a Texas bill of sale
A bill of sale should include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code found on the dashboard, the title document, and the driver's side door jamb. This number uniquely identifies the specific car and prevents confusion if the buyer or seller owns multiple vehicles.
The document must also show the sale price — the amount of money the buyer paid for the vehicle. Write this as a number and spell it out in words to avoid disputes. If the vehicle was traded in as part of the deal, note that as well.
Include the date of sale, the full names and addresses of both the buyer and seller, and a description of the vehicle (year, make, model, color, and body type). Note the vehicle's condition at the time of sale — whether it is being sold "as is" or with any warranties. Both the buyer and the seller must sign and date the document in front of each other or a notary public.
Some buyers and sellers also note the odometer reading at the time of sale, whether the title is clean or has a salvage or rebuilt brand, and whether any liens (loans) are still attached to the vehicle. If there is an outstanding loan, the seller should note who holds the lien and confirm that it will be paid off before or at the time of sale.
Where to find a printable bill of sale template
The Texas Department of Motor Vehicles does not publish an official bill of sale form, but several reliable sources offer free printable templates. The Texas Justice Court Training Center provides a straightforward, legally sound bill of sale template that you can read and print. This template is designed specifically for Texas transactions and includes all the fields required by state law.
Many title service companies and online legal document sites also offer free Texas bill of sale templates. When choosing a template, look for one that includes fields for the VIN, sale price, date, buyer and seller information, vehicle description, and signature lines. Avoid templates that ask for unnecessary personal information or that are designed for a different state.
You can also write a bill of sale by hand on plain paper or type one yourself using a word processor. The document does not need to be on any special form — it just needs to contain the required information and be signed by both parties. If you write it yourself, make sure both the buyer and seller keep a copy.
How to fill out and sign a bill of sale
Print the template or write out the bill of sale on paper. Fill in the vehicle's VIN, year, make, model, and color. Write the sale price in both numbers and words — for example, "Five Thousand Dollars ($5,000.00)" — to prevent later disputes about the amount.
Enter the date of the sale, the buyer's full name and address, and the seller's full name and address. If the vehicle is being sold "as is" with no warranty, write that clearly. If the seller is providing any warranty or may provide, describe it in the document.
Both the buyer and the seller must sign and print their names on the bill of sale. The signatures do not have to be notarized in Texas, but having a notary public witness the signatures adds an extra layer of protection and may be useful if a dispute arises later. Some title service companies offer notary services for a small fee.
Make at least two copies — one for the buyer and one for the seller. If there is a lien holder (a bank or finance company that holds the loan), some sellers provide a copy to the lender as well. Keep your copy in a safe place with your other vehicle documents.
How a bill of sale relates to the title transfer process
A bill of sale is a separate document from the vehicle's title. The title is the official state record of ownership, and it is what you must transfer through the Texas Department of Motor Vehicles to legally change who owns the vehicle.
After you sign a bill of sale, the buyer must take the signed bill of sale, the current title document, and a completed process for Texas Title and/or Registration (Form 130-U) to a TXDMV office or an authorized title service. The buyer will also need to pay the title transfer fee, which varies based on the vehicle's value. The TXDMV will then issue a new title in the buyer's name.
The seller should keep a copy of the signed bill of sale as proof that they transferred ownership on a specific date. If the buyer does not register the vehicle or gets into an accident before the title is transferred, the seller can use the bill of sale to show that they no longer owned the vehicle at that time.
When a bill of sale is especially important
A bill of sale is particularly useful when you are buying or selling a vehicle privately, rather than through a dealership. Dealerships typically handle the paperwork and title transfer, but private sales depend on the buyer and seller to manage the process correctly.
If you are selling a vehicle with an outstanding loan, a bill of sale helps document that the sale occurred and at what price, which is important if the lender needs to be paid off before the title can be transferred. If you are buying a vehicle from a private seller, a bill of sale protects you by showing the purchase price and condition of the vehicle, which you may need to show your insurance company or the TXDMV.
A bill of sale also protects you if the other party later claims the sale never happened or disputes the terms. For example, if a seller claims the buyer never paid, or if a buyer claims the seller promised repairs that were not made, the signed bill of sale serves as evidence of what was actually agreed to and when.
Frequently Asked Questions
Do I have to notarize a bill of sale in Texas?
No, notarization is not required by Texas law. However, having a notary public witness the signatures adds credibility to the document and may help if you need to prove the sale occurred. Some title service offices offer notary services, or you can visit a bank, attorney's office, or UPS store that provides notarization.
What if I lose my copy of the bill of sale after I sell the car?
If you are the seller and lose your copy, you can ask the buyer for another copy. If the buyer refuses or cannot provide one, you can contact the Texas Department of Motor Vehicles to confirm that the title was transferred into the buyer's name, which serves as proof that the sale occurred. Keep records of any communication about the sale.
Can I use a bill of sale from another state for a Texas car sale?
You can use an out-of-state template as a starting point, but make sure it includes all the information required for a Texas transaction and does not include requirements specific to another state. A Texas-specific template is safer and ensures you have all the necessary fields.
What should I do if the buyer does not transfer the title after I sell them the car?
Contact the buyer and ask them to complete the title transfer. If they do not respond, you can contact the Texas Department of Motor Vehicles and provide them with a copy of the bill of sale to show that you transferred ownership on a specific date. The TXDMV may be able to help resolve the issue or confirm that you are no longer the registered owner.
Is a bill of sale the same as a title?
No. A bill of sale is a record of the sale transaction, while a title is the official state document that shows who owns the vehicle. You need both: the bill of sale to document the sale, and the title transfer to legally change ownership in the state's records.