What Is a Texas Vehicle Bill of Sale?
A Texas vehicle bill of sale is a legal document that provides proof that a car has been sold and ownership has changed hands. It includes important information about the sale, such as:
- The buyer’s and seller’s names and addresses
- The vehicle’s year, make, model, and VIN
- The sales price
- The date of the sale
In Texas, the Department of Motor Vehicles (TxDMV) does not require a bill of sale for private motor vehicle sales. But having one can help protect both parties and create a clear record of the sale.
It also helps prevent future disputes around who owns the vehicle or how much was paid. This document is also extremely helpful, as it supports title transfer applications and assists with tax records, particularly in cases where the sale amount is under dispute.
A bill of sale for a vehicle in Texas does not substitute for a signed vehicle title. To transfer legal ownership in Texas, the buyer and the seller must complete the title transfer through TxDMV, typically using Form 130-U. However, including a bill of sale as supporting documentation can help confirm the sale date and purchase price during title transfer or tax assessments.
When Do You Need a Texas Vehicle Bill of Sale?
Texas doesn’t require a bill of sale for private vehicle sales, but using one is often in your best interest. Here’s why it can make a difference:
- Selling a car without a dealership: If you’re not using a dealership, a Texas vehicle bill of sale gives you written proof of the sale.
- Gifting or donating a vehicle: With a bill of sale, you can document that the transfer was not a purchase, which may be helpful for tax or liability purposes.
- Avoiding future claims: It shows the date the car ownership changed hands, which protects the seller if the buyer receives a ticket or is involved in an accident after the sale.
- Proving sale price for tax season: TxDMV may review the reported price during the title transfer or registration, and a Texas vehicle bill of sale form can help provide clear proof of the vehicle’s value for tax purposes.
- Backing up insurance changes: A vehicle bill of sale can confirm when you sold or bought the car, in case questions about insurance arise.
Does a Motor Vehicle Bill of Sale Need to Be Notarized in Texas?
No, Texas does not require notarization for a vehicle bill of sale. You can legally complete the sale without a notary. However, getting your bill of sale notarized can be helpful because it adds an extra layer of protection by:
- Verifying the identity of the buyer and seller
- Making the signatures hard to dispute
- Helping prevent fraud and disagreements
Notarization becomes more useful when:
- The vehicle’s value is high
- The sale is “as-is” with no warranty
- Either party lives in another state
- There’s a large cash payment involved
While it’s optional, notarizing the form can give both parties peace of mind. It adds weight to the transaction record and makes it harder to challenge later.
If you choose to notarize your vehicle bill of sale, attaching a notary acknowledgment form can strengthen its legal standing and help verify the identities of both parties.
Sample Texas Vehicle Bill of Sale
View a sample Texas vehicle bill of sale template to see what the form looks like. This example shows the key details that should be included in your document. When you’re ready, download a free Texas motor vehicle bill of sale template in PDF or Word and customize your form as needed.
