What Texas requires on a bill of sale

Texas does not have an official state bill of sale form, but the Texas DMV (called the Texas Department of Motor Vehicles) recognizes bills of sale that include specific information. You can write one yourself on plain paper, use a template, or buy a pre-printed form from an office supply store — as long as it contains the required details, the DMV will accept it.

The bill of sale must include the seller's name and address, the buyer's name and address, a description of the vehicle (year, make, model, color, and vehicle identification number or VIN), the sale price, the date of sale, and the signatures of both the seller and buyer. If the vehicle has a lien on it (meaning a bank or lender still owns part of it), you must note the lienholder's name and the loan number.

Texas law does not require the bill of sale to be notarized, but having it notarized adds a layer of protection and can speed up the title transfer process. Many banks and credit unions offer notary services for free or a small fee.

Key Takeaways

  • Texas has no official bill of sale form, so you can write one yourself or use any template that includes the seller's name and address, buyer's name and address, vehicle description with VIN, sale price, date, and both signatures.
  • The bill of sale does not have to be notarized under Texas law, but notarization is recommended and can help with the title transfer.
  • If the vehicle has an outstanding loan, the bill of sale must include the lienholder's name and loan number.
  • The buyer needs the bill of sale to explore for a title transfer at the Texas DMV within 30 days of purchase.

Where to get a bill of sale template

The Texas DMV does not provide an official form, but you can find templates through several sources. The Texas DMV website has sample language and guidance on what must be included. Office supply stores like Staples and Office Depot sell bill of sale pads designed for Texas, usually for $5 to $10.

Online sources including legal document websites and the Texas Secretary of State's office also offer free downloadable templates. Make sure any template you use is specific to Texas and includes all required fields. Some sellers and buyers prefer to use a straightforward letter format typed on plain paper, which is legally valid as long as all required information is present.

How to fill it out step by step

Start by writing or typing the seller's full legal name and current address at the top. Then add the buyer's full legal name and current address. Both names should match the identification documents each person will use to sign the bill of sale.

Next, describe the vehicle in detail: the year, make, model, body style (sedan, truck, SUV, etc.), color, and the 17-character VIN. You can find the VIN on the vehicle's dashboard, on the title document, or on the registration card. Write the sale price in both numbers and words (for example, "$5,500" and "Five thousand five hundred dollars") to avoid confusion.

Add the date the sale took place. If the vehicle has an outstanding loan, write the lienholder's name (usually the bank or credit union) and the loan account number. At the bottom, both the seller and buyer must sign and print their names. If the bill of sale is notarized, the notary will add their seal and signature in a designated area.

Notarization and when it matters

A notary public is a person authorized by the state to witness signatures and verify that the people signing are who they say they are. Notarization is not required by Texas law for a bill of sale, but it is strongly recommended, especially if the vehicle has a lien or if the buyer and seller do not know each other well.

When you have the bill of sale notarized, the notary checks the ID of both the seller and buyer, watches them sign, and then stamps and signs the document. This creates an official record that the transaction took place and that both parties agreed to the terms. Many title transfer disputes are resolved more quickly when a notarized bill of sale is presented.

To get a bill of sale notarized, visit a bank, credit union, law office, or notary public's office. Bring the unsigned bill of sale and a valid photo ID. The cost is usually between $5 and $15 per signature, though some banks offer notary services free to customers.

What happens after you sign

Once both the seller and buyer have signed the bill of sale, the buyer should keep the original and the seller should keep a copy. The buyer will need the bill of sale to explore for a title transfer at the Texas DMV within 30 days of the purchase date.

If the vehicle has a lien, the lienholder must release the lien before the title can be transferred to the buyer's name. This usually happens automatically when the seller pays off the loan, but the buyer should confirm with the lienholder that the lien has been released before submitting the title transfer paperwork to the DMV.

The seller should keep a copy of the signed bill of sale for their records. This protects the seller in case questions arise later about when the vehicle was sold or who owned it at a particular time.

Common mistakes to avoid

The most common mistake is leaving out the VIN or writing it incorrectly. The VIN is how the DMV identifies the specific vehicle, so any error will delay the title transfer. Double-check the VIN against the title document or the vehicle's dashboard before you sign.

Another frequent error is writing the sale price in numbers only, without spelling it out in words. This can lead to disputes if the numbers are unclear or if someone claims the price was different. Always write the price both ways.

Sellers sometimes forget to note a lien on the bill of sale, which creates problems when the buyer tries to transfer the title. If there is any outstanding loan on the vehicle, it must be listed on the bill of sale and released before the title transfer can be completed.

Finally, make sure both the seller and buyer sign the bill of sale in person or have it notarized. A bill of sale signed by only one party or unsigned is not valid for a title transfer.

Bill of sale vs. the title document

The bill of sale and the title are two different documents that serve different purposes. The bill of sale is a record of the sale transaction — it shows that money changed hands and that the seller agreed to transfer ownership to the buyer. The title is the official government document that proves who owns the vehicle.

The seller currently holds the title. After the sale, the buyer uses the bill of sale and the seller's signature on the title to explore for a new title in the buyer's name at the Texas DMV. The bill of sale is the evidence that the sale took place; the title is the proof of ownership.

You need both documents to complete a title transfer in Texas. The bill of sale alone does not transfer ownership — it only documents that a sale occurred. The DMV uses the bill of sale to verify the transaction and then issues a new title to the buyer.

Frequently Asked Questions

Can I write a bill of sale on any piece of paper?

Yes. Texas law does not require a specific form or format. You can write a bill of sale on plain notebook paper, printer paper, or a napkin, as long as it includes all required information: seller name and address, buyer name and address, vehicle description with VIN, sale price, date, and both signatures. The DMV will accept it.

Do both the buyer and seller have to sign at the same time?

No. The seller can sign first, give the bill of sale to the buyer, and the buyer can sign later. However, both signatures must be present before the buyer submits it to the DMV. If you are concerned about the order of signatures, having the bill of sale notarized removes any doubt about when and where the signatures were made.

What if the seller's name on the bill of sale does not match the name on the title?

This can delay or block the title transfer. The seller's name on the bill of sale must match the name on the current title exactly. If there is a discrepancy — for example, a nickname versus a legal name, or a name change — contact the Texas DMV before submitting the paperwork. You may need to get a corrected title first.

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

No. Dealers provide their own paperwork, usually called a buyer's order or sales agreement, which serves the same purpose as a bill of sale. You do not need to create a separate bill of sale when buying from a licensed dealer in Texas.

Can I use a bill of sale from another state?

You can, but it is not recommended. A bill of sale from another state may not include all the information Texas requires, and the DMV may reject it or ask for additional paperwork. It is safer to use a bill of sale that follows Texas requirements, even if you are transferring a vehicle from out of state.