What a Texas bill of sale is and when 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 vehicle and establishes the terms of that transaction — price, date, vehicle details, and the names and signatures of both parties.

You need a bill of sale whenever you buy or sell a vehicle in Texas, whether the sale is between private individuals, from a dealer, or as a gift. The document protects both the buyer and seller by creating a paper trail of ownership. If you later have a dispute about the condition of the vehicle, the price agreed upon, or who owned it on a particular date, the bill of sale is your evidence.

Texas does not require a specific state form for a bill of sale — you can write one yourself, use a template, or purchase one from an office supply store. What matters is that the document includes the required information and is signed by both parties.

Key Takeaways

  • Texas law does not mandate a single official bill of sale form, so you can create one yourself as long as it includes vehicle details, the sale price, and signatures from both buyer and seller.
  • The bill of sale should list the vehicle identification number (VIN), make, model, year, odometer reading, and any known defects or damage.
  • Both the buyer and seller must sign the bill of sale, and it is wise to have the signatures notarized even though Texas does not require it.
  • You should keep a copy of the bill of sale for your records and provide one to the other party before or at the time of the sale.
  • The bill of sale is separate from the vehicle title and registration; you will need to handle title transfer through the Texas Department of Motor Vehicles.

Required information to include on a Texas bill of sale

The bill of sale must identify both the vehicle and the people involved in the transaction. Include the seller's full name and address, the buyer's full name and address, and the date of the sale. Do not use nicknames or abbreviations for names — use the legal names that appear on driver's licenses or identification documents.

For the vehicle itself, write down the year, make, model, body style (sedan, truck, SUV, etc.), and the vehicle identification number (VIN). The VIN is a 17-character code found on the driver's side dashboard, the door jamb, or the vehicle title. You must also record the odometer reading at the time of sale. If the odometer does not work or reads over 99,999 miles, note that on the bill of sale.

State the sale price in words and numbers — for example, "Five Thousand Dollars ($5,000.00)". If the vehicle is being given as a gift, write "Gift" or "$0" rather than leaving the price blank. Include any known defects, damage, or mechanical issues with the vehicle. This protects the buyer by documenting what condition the vehicle was in at the time of sale and protects the seller by showing the buyer knew about those issues.

How to format and sign the bill of sale

There is no required format for a Texas bill of sale. You can type it on a computer, write it by hand, or use a template. The document should be clear and straightforward to read. Number the sections if it helps organize the information, and leave space for signatures at the bottom.

Both the seller and buyer must sign and date the bill of sale. Signatures should be in ink, not printed. If either party is signing on behalf of a business or estate, they should print their name below the signature and write their title (for example, "Manager" or "Executor"). Some people choose to have a witness sign as well, though Texas does not require it.

Having the bill of sale notarized — signed in front of a notary public who verifies your identity — is not required by Texas law but is a good practice. A notarized bill of sale carries more weight if there is ever a dispute about the sale. Notaries are available at banks, credit unions, UPS stores, and some law offices. The cost is usually between $5 and $15 per signature.

Difference between a bill of sale and a vehicle title

Many people confuse the bill of sale with the vehicle title, but they are two separate documents that serve different purposes. The bill of sale is a record of the transaction — who sold the vehicle, who bought it, when, and for how much. The title is the legal document that proves ownership of the vehicle and is issued by the state.

When you buy a vehicle in Texas, the seller must provide you with the title (also called a "certificate of title"). You then take that title to the Texas Department of Motor Vehicles to register the vehicle in your name. The bill of sale is supporting documentation that shows how you came to own the vehicle. You will need both the bill of sale and the title to complete the registration process.

If the vehicle has a lien on it — meaning a bank or lender has a claim against it — the title will show that. The seller must pay off the lien before transferring the title to you, or the lender must sign off on the transfer. The bill of sale does not address liens; that is handled through the title and lender.

What to do with the bill of sale after the sale

Keep a copy of the signed bill of sale for your records. If you are the buyer, store it with your vehicle documents, insurance papers, and maintenance records. If you are the seller, keep a copy for at least three to five years in case questions arise later about the sale or the vehicle's condition at the time of transfer.

The buyer should take the bill of sale and the title to the Texas Department of Motor Vehicles to register the vehicle. You can do this in person at a local DMV office, by mail, or through an authorized agent. Bring the bill of sale along with the title, proof of insurance, and a completed process for title and registration (Form 130-U). The DMV will use the bill of sale as evidence of the sale and to update its records.

If you are selling a vehicle, provide the buyer with a copy of the bill of sale before or at the time of the sale. This shows good faith and gives the buyer proof of the transaction. If there are any issues with the vehicle after the sale, the buyer can refer to the bill of sale to show what condition it was in and what price was agreed upon.

Common mistakes to avoid when writing 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. Blank spaces can be filled in later by someone else, which opens the door to fraud.

Do not use "cash" as the only payment method without specifying the amount. Write out the exact price in both words and numbers. If the buyer is paying in installments, note that on the bill of sale and include the payment schedule.

Do not forget to include the odometer reading. Texas law requires this, and it protects both parties by documenting the vehicle's mileage at the time of sale. If the odometer is broken or the vehicle has over 99,999 miles, write that down explicitly.

Do not sign the bill of sale before all the information is filled in. Review the entire document with the other party to make sure everything is correct before either of you signs. Once signed, changes should be initialed by both parties.

When a bill of sale alone is not enough

In some situations, a bill of sale by itself does not complete the sale. If the vehicle has a loan against it, the lender must release the lien before the title can be transferred to the buyer. The bill of sale documents the sale, but the lender's paperwork is what removes their claim on the vehicle.

If you are buying a vehicle "as-is" — meaning you accept it in its current condition with no warranty — you may want to add that language to the bill of sale. Write something like "Vehicle sold as-is, with no warranty expressed or implied" and have both parties initial it. This protects the seller from later claims that the vehicle was defective.

If the vehicle is being sold by an estate or through a power of attorney, the person signing on behalf of the owner should bring documentation showing they have the authority to do so. This might be a death certificate and will, or a power of attorney document. The bill of sale should note who is signing and in what capacity.

Frequently Asked Questions

Can I write a bill of sale by hand, or does it have to be typed?

Texas accepts handwritten bills of sale as long as the handwriting is legible and all required information is included. Typed bills of sale are also fine. What matters is that the document is clear, complete, and signed by both parties. Keep a copy for your records.

Do I need a bill of sale if I am buying from a car dealer?

Dealers typically provide their own sales contract or bill of sale as part of the purchase agreement. That document serves the same purpose as a private bill of sale. Make sure you receive a copy and keep it with your vehicle paperwork.

What if the seller will not sign the bill of sale?

Do not complete the purchase without a signed bill of sale. This document is your proof of ownership and protects you if there are disputes later. If the seller refuses to sign, it is a red flag that something may be wrong with the vehicle or the sale itself.

Is a notarized bill of sale required to register the vehicle in Texas?

No, Texas does not require a notarized bill of sale to register a vehicle. However, notarization adds an extra layer of protection and makes the document more difficult to challenge if a dispute arises later.

What happens if I lose my copy of the bill of sale?

If you lose your bill of sale, contact the other party and ask for another signed copy. If you cannot reach them, you can request a copy of the title transfer record from the Texas Department of Motor Vehicles, which documents the sale. Keep your copy in a safe place with your other vehicle documents.