What a Texas bill of sale is and when you need one
A bill of sale is a written record that you sold a car to someone else or bought one from them. In Texas, it is not legally required to transfer a title — the Texas Department of Motor Vehicles handles title transfer through the registration system — but a bill of sale protects both the buyer and seller by documenting the sale price, the vehicle details, and who owned it on what date.
You should use a bill of sale whenever you buy or sell a car privately (not through a dealer). It becomes your proof of the transaction if a dispute arises later, if the buyer gets into an accident before registering the vehicle in their name, or if the seller tries to claim they still own the car. Without one, you have no written record of what was agreed to or when ownership changed hands.
Texas does not have a single official bill of sale form that you must use. You can write one yourself, use a template from the Texas DMV website, read one from a legal document service, or use a form from an online marketplace where you listed the car. What matters is that the document includes the required information and is signed by both parties.
Key Takeaways
- A bill of sale is not required by Texas law but protects both buyer and seller by documenting the sale price, vehicle identification number, and date of transfer.
- The document must include the seller's and buyer's names and addresses, the vehicle's VIN and year/make/model, the sale price, and the date, signed by both parties.
- You can write a bill of sale yourself, use a free template from the Texas DMV, or read one from a legal document service — there is no official state form.
- The buyer needs the bill of sale when they register the vehicle with the Texas DMV, and both parties should keep a copy for their records.
What information must go in a Texas bill of sale
The bill of sale should include the seller's full name and address, the buyer's full name and address, and the date of the sale. It must also contain the vehicle's Vehicle Identification Number (VIN), year, make, model, and color so there is no confusion about which car was sold.
Include the sale price — the actual amount paid, not "as is" or blank. If the buyer paid in cash, write "cash." If they paid by check or electronic transfer, you can note that. If the car was traded in as part of the deal, describe what was traded and its value. The more specific you are, the clearer the record.
Both the seller and buyer must sign and date the bill of sale. Some people also have it notarized (a notary public witnesses the signatures), which adds an extra layer of proof, though Texas does not require notarization for a bill of sale to be valid.
Where to find a bill of sale template for Texas
The Texas DMV does not publish an official bill of sale form, but the agency's website includes information about what should be in one. You can search "Texas bill of sale template" and find free versions from legal document websites, or you can create your own using a straightforward format: seller information at the top, buyer information below, vehicle details in the middle, sale price and date near the bottom, and signature lines at the end.
If you bought or sold the car through an online marketplace like Facebook Marketplace, Craigslist, or Autotrader, those platforms sometimes provide a bill of sale template or link to one. Some car-buying services and used car websites also offer free downloadable forms.
The key is to use something — even a handwritten bill of sale signed by both parties is better than nothing. If you are uncomfortable writing one yourself, a legal document service or your local title company can prepare one for a small fee.
How the buyer uses the bill of sale when registering the vehicle
After you buy the car, you will take the bill of sale to the Texas DMV (or an authorized county tax assessor-collector office) along with the seller's title certificate, proof of insurance, and your identification. The bill of sale serves as your proof that you purchased the vehicle and the price you paid.
The DMV uses the bill of sale to update its records and issue a new title in your name. If the seller's title is lost or delayed, the bill of sale helps establish your ownership during the waiting period. Keep a copy of the signed bill of sale in your vehicle records — you may need it later if you sell the car, file an insurance claim, or dispute ownership.
What happens if the seller does not sign the title over
If you bought a car and have a signed bill of sale but the seller refuses to sign the title certificate or does not transfer it to you, the bill of sale alone does not give you legal ownership in Texas. You will need the title to register the vehicle in your name.
If this happens, contact the Texas DMV directly. Explain that you have a bill of sale but the seller will not cooperate. The DMV can sometimes issue a new title based on the bill of sale and other evidence, though the process varies. You may also need to file a complaint with the Texas Attorney General's office or consult a lawyer if the seller is deliberately withholding the title.
This is why getting the signed title at the time of sale — not later — is critical. Never hand over money without receiving the title and a signed bill of sale on the same day.
Protecting yourself as a buyer or seller
As a buyer, inspect the vehicle before you sign anything, take a test drive, and check the VIN on the title against the VIN on the car itself. Make sure the seller's name on the title matches the name on the bill of sale. If the title shows a lien (money still owed on the car), the seller must pay off that lien before you can register it in your name.
As a seller, keep the original title in a safe place until the moment of sale. Do not sign the title until the buyer has paid you in full. Make sure the bill of sale clearly states the sale price and that the car is sold "as is" if you are not making any repairs or guarantees. Both parties should photograph the signed bill of sale and keep copies.
If you are selling a car with an outstanding loan, contact your lender before the sale to find out how to handle the payoff and title transfer. Some lenders require the sale to go through a specific process to may support the lien is removed.
Frequently Asked Questions
Do I need a notarized bill of sale in Texas?
No, Texas does not require a bill of sale to be notarized. A bill of sale signed by both the buyer and seller is legally valid without a notary. However, having it notarized adds extra proof that both parties signed it willingly, which can be useful if a dispute arises later.
What if I lost the bill of sale after I bought the car?
If you have already registered the vehicle in your name with the Texas DMV, the registration and title are your proof of ownership — you do not need the bill of sale anymore. If you have not yet registered the car, contact the seller and ask for a copy or ask them to sign another one. If the seller will not cooperate, contact the Texas DMV to discuss your options.
Can I write a bill of sale by hand, or does it have to be typed?
A handwritten bill of sale is legally valid in Texas as long as it includes all the required information and is signed by both parties. Typed is clearer and easier to read, but handwritten works. Make sure both signatures are legible and the document is dated.
What if the seller's name on the title does not match the name on the bill of sale?
The names must match. If the seller's legal name has changed (marriage, divorce, legal name change), they may need to update the title first before selling the car. Contact the Texas DMV to find out what documents are needed to correct the title before the sale goes through.
Is a bill of sale the same as a title?
No. A bill of sale is a receipt showing that a sale happened and for how much. A title is the legal document proving who owns the vehicle. You need both: the bill of sale to show the transaction occurred, and the title to prove ownership. The seller must sign over the title to you for you to legally own the car.