A Texas car bill of sale is a legal form that may be of great benefit to both the seller and the purchaser as it documents the process of selling and buying a vehicle in the state. Possessing a properly filled out bill of sale form is especially important when buying a vehicle from a private seller rather than from car dealerships in TX.

A vehicle bill of sale is not necessarily a requirement of the state’s Department of Motor Vehicles (DMV) for car title transfers or registrations after a vehicle’s sale, but the department may accept this form in other vehicle-related proceedings. For instance, this credential may be submitted with component parts used to rebuild or reconstruct motor vehicles.

The details listed on a simple bill of sale may also prove useful after the process of buying a car, resolving any legal disagreements between the transferor and the transferee over the ownership of the vehicle in question. Therefore, when filling out this document, individuals must ensure that the data entered is correct and accurate.

Learn more about how to write a bill of sale, where to get this document and when such document is necessary by reading the following sections.

When is a bill of sale necessary in Texas?

Despite the fact that an auto bill of sale is not a requirement of the state’s Department of Motor Vehicles for finalizing most vehicle-related transactions, retaining a copy of this document may prove helpful in other situations.

In general, having a TX bill of sale PDF or printout can be another method to prove that a transfer in ownership has taken place. Thus, this credential can protect the interests of both the seller and the purchaser.

If, for instance, the title transfer procedure has not been completed properly after the process of buying a car, the previous owner may still be held responsible for any activities or traffic violations associated with the vehicle sold. With a car bill of sale, he or she can prove the change in ownership and avoid any liability related to the vehicle in question.

A TX DMV bill of sale can be accepted in other situations, as well. For example, this credential may be submitted with out-of-state or out-of-country registration receipts, provided these documents do not include transfer of ownership sections or the issuing state/country does not issue title certificates as proof of ownership. In addition to this, a bill of sale form in Texas may also be acceptable for DMV proceedings pertaining to rebuilt or reconstructed motor vehicles.

Who needs a Texas bill of sale?

The details contained on a TX vehicle bill of sale are often of equal importance to both the seller and the purchaser. Having a copy of this document as an extra piece of evidence can help the seller confirm he or she no longer owns the vehicle in the event of any legal issue.

A simple bill of sale allows the seller to still have access to the specific details pertaining to the vehicle sold, including the purchase price. In such cases, a Texas bill of sale form acts as a receipt for the seller’s personal records. Thus, this credential can protect the interests of the purchaser, as well, if deemed necessary. By furnishing even a simple bill of sale template, the purchaser can confirm that he or she submitted payment for the arranged price and that he or she is the new owner of the vehicle sold.

How to Complete a Bill of Sale Form in Texas

A Texas bill of sale document generally includes different pieces of information related to the entities involved in the transfer of ownership, the seller and the buyer. A standard version of this credential will also have information on the vehicle that is being transferred between both parties. The information that may be found on a bill of sale template includes, but is not limited to, the following:

  • The printed names of the seller and the purchaser along with their contact information.
  • Information about the vehicle on sale, such as:
    • Vehicle identification number (VIN).
    • Year.
    • Make.
    • Model.
  • The purchase price.
  • The exact date of the sale.
  • The signatures of the buyer and the seller.

Prior to submitting a filled out bill of sell to the Texas Department of Motor Vehicles, if necessary, it is best for you to ensure that the data entered is accurate. A prudent step in such instances is to order a vehicle history check in a timely manner.

Last updated on Tuesday, March 10 2020.