Is a bill of sale required in Texas?

Texas accepts properly assigned titles for transfers, but a bill of sale is recommended as supplemental evidence of sale, price, and odometer; counties may require additional documentation for tax calculation and registration.

Can a bill of sale be electronically signed?

Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure the signer demonstrates intent, consents to electronic records, and the platform retains a reproducible record.

Do bills of sale need notarization in Texas?

Notarization is not generally required statewide for private vehicle bills of sale in Texas, though specific transactions or lender requirements may request notarized affidavits or signatures for additional assurance.

What if I made an error on the bill of sale?

Correct minor errors by executing a corrected bill of sale signed by both parties or attach an amendment; for substantial mistakes, consider a re-execution or consult county tax office guidance to avoid rejected filings.

How long should I keep the bill of sale?

Retain the original for at least three years after transfer; keep it longer if the record supports tax returns or potential disputes. IRS guidance (IRC §6501(a)) can require three years for audit purposes.

Who should get the signed copies?

Provide a signed copy to the buyer and seller and retain an original for your records; lenders, insurers, or a county tax office may request copies when processing title, liens, or claims.

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Texas Motor Vehicle Bill of Sale

Texas Motor Vehicle Bill of Sale

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BILL OF SALE OF AUTOMOBILE

To be completed upon sale of motor vehicle.

State of Texas

County of

$ (Purchase Price)

FOR AND IN CONSIDERATION OF the execution of a Promissory Note for $ and downpayment of $ by (Buyer(s), to "Seller(s)", Seller(s) do hereby bargain and sell to Buyer(s) the following personal property:

One (1) Motor Vehicle

Make

Model

Body Type

Vehicle Identification Number (VIN)

Year:

The said property I guarantee is my own and free of all claims and offsets of any and all kinds.

To have and to hold the same unto Buyer(s) and Buyer(s) executors, administrators and assigns, forever.

Seller(s) hereby covenant to and with Buyer(s)that Seller(s) is the true and lawful owner(s) of the above-described motor vehicle, that the same is free from all encumbrances whatsoever except the lien retained by Seller(s), that Seller(s) has good right to sell the same as aforesaid, and that Seller(s) will warrant and defend the same against all lawful claims and demands whatsoever.

Seller(s)

Signature

Print Name:

Signature

Print Name:

NOTARY PUBLIC

SWORN TO AND SUBSCRIBED BEFORE ME, this day of 20

My Commission Expires:

ODOMETER DISCLOSURE STATEMENT

To be completed by Transferor (Seller)

Federal law (and State law, if applicable) requires that you state the mileage upon transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment.

I, , state that the odometer now reads miles and to the best of my knowledge that it reflects the actual mileage of the vehicle described below, unless one of the following statements is checked.

I hereby certify that to the best of my knowledge the odometer reading reflects the amount of mileage in excess of its mechanical limits.

I hereby certify that the odometer reading is NOT the actual mileage.

WARNING - ODOMETER DISCREPANCY.

Make

Model

Body Type

Vehicle Identification Number (VIN)

Year:

Signature of Transferor (Seller):

Transferor's (Seller's) Information

Transferor's Name (Please Type or Print):

Street Address:

City:

State:

Zip:

Transferee's (Buyer's) Information

Transferee's Name (Please Type or Print):

Street Address:

City:

State:

Zip:

Signature of Transferee (Buyer):

DATE OF STATEMENT:

STATE OF TEXAS

COUNTY OF

NOTARY PUBLIC

SWORN TO AND SUBSCRIBED BEFORE ME, this the day of 20

My Commission Expires:

PROMISSORY NOTE

(In Connection with Sale of Vehicle)

$

County, Texas

Date:

FOR VALUE RECEIVED, the undersigned Buyer(s), promise to pay to the order of , whose address is the sum of ($ ), together with no interest, or with interest of percent per annum, payable in monthly installments of per month, with the first payment being due on the day of 20 and a like payment on the same day of each month thereafter until fully paid.

THERE will be no pre-payment penalty on this Note.

IF DEFAULT is made in payment after demand, and such default shall continue for a period of 10 days, then the holder hereof may, at its option, declare the whole sum then remaining unpaid immediately due and payable. In case of any such default, the undersigned agrees to pay all costs of collection, including a reasonable attorney's fee, whether or not suit is instituted. Upon default for ten (10) days, the vehicle sold to Buyer in connection with this promissory note shall be returned to Seller(s) and Seller(s) is granted all rights of repossession as a secured party.

PRESENTMENT for payment, demand, notice of dishonor, protest, notice of protest and any homestead or personal property exemption allowed by the constitutions or laws of any state are hereby waived by the undersigned. Failure by the holder hereof to exercise any option granted it hereunder shall not constitute a waiver of future rights.

This Note is given to secure the payment of the purchase price of a vehicle, identified below:

Make:

Model:

Year:

VIN:

Title to the vehicle will either be (check option) retained by Seller until all payment due under this note are paid in full, or transferred to Buyer at execution of this note, in which case Seller retains a vendors lien in said vehicle and Buyer grants to Seller a security interest in the vehicle until this note is paid in full. If title is transferred to Buyer, Seller shall be listed as a lender on the title of the vehicle, whether or not Seller elects to perfect Seller's security interest in the vehicle.

BORROWER/BUYER SS#

BORROWER/BUYER

BORROWER/BUYER SS#

BORROWER/BUYER

Seller Name, Address, Phone:

Buyer(s) Name, Address, Phone:

What the Texas Motor Vehicle Bill of Sale Is

The Texas Motor Vehicle Bill of Sale is a written record used to document a private sale or transfer of a motor vehicle between buyer and seller in Texas. It records vehicle details, parties, sale price, odometer reading, and date of transfer to create evidence of the transaction for title, registration, tax, and insurance purposes. Although the Texas Department of Motor Vehicles accepts properly assigned titles for transfers, a bill of sale supplements the title record, supports tax calculation, and helps resolve ownership disputes when vehicle history or payment terms require documentation.

Why a Bill of Sale Matters in Texas Transfers

A Texas Motor Vehicle Bill of Sale provides clear proof of ownership transfer, records sale consideration for tax calculation, captures odometer and condition details, and creates a concise legal record that reduces disputes and supports title and registration processes.

Who Typically Uses a Texas Motor Vehicle Bill of Sale

Common users who rely on a Texas Motor Vehicle Bill of Sale include private sellers, buyers, dealers, and finance or insurance specialists involved in vehicle transfer.

Private-party sellers documenting price, odometer, and transfer terms for title and tax purposes.
Buyers preserving proof of purchase for registration, insurance, and potential resale.
Dealerships and brokers managing trade-ins, dealer transfers, and supplemental sale records.

Step-by-Step: Completing a Texas Motor Vehicle Bill of Sale

Follow these steps to complete a Texas Motor Vehicle Bill of Sale accurately and reduce delays when transferring title or registering the vehicle.

01

Prepare details: Collect VIN, sale price, odometer, and IDs for buyer and seller.
02

Complete form: Enter all fields legibly and use MM/DD/YYYY for dates.
03

Sign: Both parties sign; business sellers include authorized representative names.
04

Keep copies: Provide signed copies to buyer, seller, and retain original for records.

Essential Information to Include on the Bill of Sale

Buyer Legal Name: Full legal name as on ID.

Seller Legal Name: Business or individual name.

Vehicle VIN: Exact 17-character vehicle identification number.

Sale Amount: Numeric dollar amount in USD.

Odometer Reading: Odometer miles stated as integer.

Date of Sale: Date in MM/DD/YYYY format.

Where to File or Submit Your Bill of Sale

After completing the bill of sale, follow these routing steps to finalize title transfer, register the vehicle, and notify tax authorities.

Deliver document: Give signed copy to buyer and seller immediately.
Title assignment: Seller signs title and provides to buyer for county filing.
Submit to DMV: Buyer files title application with the county tax office.
Retain records: Both parties keep copies for tax and dispute resolution.

Choosing Tools and Formats for Distribution and eSigning

Choose secure distribution and eSignature tools that comply with ESIGN and UETA and retain an auditable trail.

Supported formats: PDF, DOCX, and printable copies.
Integrations: Works with Google Workspace and MS 365.
Authentication: Email, SMS, or stronger signer verification.

Key Deadlines and Timing Considerations

Important dates and filing expectations cover title transfer, registration, tax reporting, and any late-report penalties for Texas vehicle sales.

Title transfer filing window in Texas:

Buyer should apply for title within 30 days of sale.

Vehicle registration timing requirement in Texas:

Register vehicle promptly; county procedures vary by office.

Sales tax reporting and payment timing:

Sales tax is typically collected or reported at title application.

Odometer disclosure requirement for transfer:

Record miles on the bill of sale and title as required.

Late fees and penalties for delayed transfer:

County may assess late title transfer fees and interest.

Common Preparation Mistakes to Avoid

Incomplete VIN or inaccurate odometer entries cause registration delays, lien search mismatches, and may require a corrected affidavit before the county accepts transfer paperwork.
Using initials instead of full signatures or failing to identify signing authority for a business seller frequently leads to rejected filings and requires notarized proof of authorization.
Failing to report the correct sale price or omitting trade-in amounts can trigger sales tax reassessment and penalties by county tax authorities.
Not keeping signed copies or sharing only a title without a bill of sale reduces documentary evidence when ownership disputes or insurance claims arise.

Penalties and Risks of an Incorrect Bill of Sale

Sales Tax Liability: Owed on declared sale amount.

Late Title Fees: County fines for delayed transfer.

Registration Rejection: Missing information prevents registration.

Liens Persist: Undischarged liens transfer with vehicle.

Backup Withholding: 24% withholding if TIN missing.

Civil Disputes: Ownership disputes can lead to litigation.

Practical Examples of Bill of Sale Use

Two concise scenarios illustrate how a Texas Motor Vehicle Bill of Sale supports private and dealer transactions, title transfer, tax reporting, and record retention.

Private Sale

A private seller documents a weekend sale of a 2012 sedan to a local buyer to record price and odometer reading.

Seller provides signed bill of sale with title.
Buyer files title transfer at the county tax office within thirty days, uses the bill of sale to calculate local sales tax, and retains a copy for insurance and future resale documentation.

Dealer Trade-In

A dealership records a trade-in and sale, documenting trade allowance and outstanding lien payoff to protect both parties.

Bill records trade value and conditional terms.
Dealer uses the bill of sale with title assignment and lien release forms to complete registration paperwork and to support inventory and tax reporting.

eSignature Vendor Comparison for Finalizing Bills of Sale

A concise pricing and capability comparison to help evaluate electronic signature providers commonly used to execute Texas Motor Vehicle Bill of Sale documents.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About the Texas Motor Vehicle Bill of Sale

Answers to frequently asked legal and procedural questions about completing, signing, and retaining a Texas Motor Vehicle Bill of Sale.

Need help? Contact support

Is a bill of sale required in Texas?
Texas accepts properly assigned titles for transfers, but a bill of sale is recommended as supplemental evidence of sale, price, and odometer; counties may require additional documentation for tax calculation and registration.
Can a bill of sale be electronically signed?
Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure the signer demonstrates intent, consents to electronic records, and the platform retains a reproducible record.
Do bills of sale need notarization in Texas?
Notarization is not generally required statewide for private vehicle bills of sale in Texas, though specific transactions or lender requirements may request notarized affidavits or signatures for additional assurance.
What if I made an error on the bill of sale?
Correct minor errors by executing a corrected bill of sale signed by both parties or attach an amendment; for substantial mistakes, consider a re-execution or consult county tax office guidance to avoid rejected filings.
How long should I keep the bill of sale?
Retain the original for at least three years after transfer; keep it longer if the record supports tax returns or potential disputes. IRS guidance (IRC §6501(a)) can require three years for audit purposes.
Who should get the signed copies?
Provide a signed copy to the buyer and seller and retain an original for your records; lenders, insurers, or a county tax office may request copies when processing title, liens, or claims.

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