A Vehicle Bill of Sale in Texas: What to Include

A private vehicle sale in Texas runs on the title. The seller signs it over, the buyer files the application at the county tax office, and the state records the new owner. A bill of sale is not part of that required chain, and the county will not ask for one in most cases. It exists for a different reason: it is the record of what the two people agreed, on what date, for how much, and in what condition. When the buyer later claims the truck was represented as running, or the seller gets a toll bill six months after handing over the keys, the bill of sale is the document that settles it.

What it should contain

• Full legal names, addresses and driver's license numbers of the seller and the buyer.
• Year, make, model, body style and color of the vehicle.
• The vehicle identification number, copied from the title and checked against the dash plate. A wrong digit here makes the document useless.
• The odometer reading at the time of sale, with a note if it is not the actual mileage.
• The purchase price and how it was paid: cash, cashier's check, transfer. If there is a deposit and a balance, both amounts and both dates.
• The date and time of the sale. Time matters for who is responsible for what happens with the vehicle that evening.
• An as-is statement if the vehicle is sold without warranty, which is nearly always the case in a private sale.
• Any lien status: whether the title is clear, or a lender must release a lien before the title can transfer.
• Signatures of both parties.

How it fits with the title

The bill of sale supports the title transfer; it does not replace it. The seller still signs the title in the assignment section, records the odometer on it, and the buyer still files the title application within the state's deadline and pays the motor vehicle sales tax. The county calculates that tax from the price on the application, and it compares it to a standard value for the vehicle. If the price you paid was well below that value, the bill of sale is your evidence of what was actually paid. The seller also files a vehicle transfer notification with TxDMV, which is the step that ends the seller's liability for the vehicle.

Should it be notarized?

Texas does not require a notarized bill of sale for an ordinary vehicle transaction. Notarizing it is still worth considering when the sale is large, when the parties do not know each other, when payment is in installments, or when the document will be used to support a bonded title application or a claim later. The notarization confirms who signed and when, which is exactly what is disputed most often. Both parties appear with identification and sign in front of the notary.

Situations where it matters most

1. 01The buyer never transfers the title, and the vehicle keeps accumulating tolls, tickets or worse in the seller's name. The bill of sale plus the transfer notification prove the date the seller stopped being responsible.
2. 02The title was lost and the buyer has to apply for a bonded title. A bill of sale is the primary evidence of ownership in that process.
3. 03A dispute over the price when the county assesses tax, or between the parties over what was paid.
4. 04A sale of a vehicle bought from a private party and resold before the title was ever put in the middle owner's name. That is title jumping, and it is not legal; a bill of sale documents the chain honestly instead.

Frequently asked questions

Bring the title and both IDs

We are at 700 C Andrews Hwy in Midland, and we handle title work in English and Spanish. Call (432) 257-7547 first if you have questions about what the county will need.