Texas Vehicle Bill of Sale

A Texas vehicle bill of sale is a signed document that records the private sale of a motor vehicle. It identifies the vehicle by year, make, model, VIN, and color, states the agreed sale price, and includes the odometer and condition disclosures required by state and federal law. Texas does not provide an official bill of sale form for private-party vehicle sales, so the seller must prepare one independently or use a form that meets the requirements of Texas Transportation Code §501.0721.

Is a bill of sale legally required to sell a car in Texas?

Texas does not mandate a standalone bill of sale for every vehicle transfer, but the seller must deliver a properly assigned title or other evidence of title to the buyer at the time of sale (Texas Transportation Code §501.0721). A bill of sale serves as that evidence and is standard in private-party transactions. The county tax assessor-collector's office will expect the buyer to present it — along with the signed title and a completed Form 130-U (Application for Texas Title and/or Registration) — when applying for a new title.

A bill of sale also protects the seller. Until the buyer completes the title transfer, the seller can be held responsible for parking tickets, toll violations, and accidents involving the vehicle. Filing a Vehicle Transfer Notification (Form VTR-346) with the Texas Department of Motor Vehicles within 30 days of the sale creates an official record that the vehicle changed hands, but the bill of sale itself is the primary dated proof that the transfer occurred.

What information does a Texas vehicle bill of sale need to include?

A complete Texas vehicle bill of sale identifies the buyer and seller by full legal name and address, states the date of sale and the purchase price, and describes the vehicle by year, make, model, body style, color, and Vehicle Identification Number (VIN). Beyond those basics, Texas private-party sales typically include three disclosures.

Odometer reading. Federal law (49 CFR §580.5) requires the seller to provide a written odometer statement for any vehicle less than 20 model years old. The disclosure must state whether the reading reflects actual mileage, whether the odometer has exceeded its mechanical limits, or whether the reading is known to be inaccurate. Providing a false odometer statement is a federal offense under 49 U.S.C. §32703. Note that the model-year threshold was extended from 10 years to 20 years by NHTSA effective January 1, 2021, applying to model year 2011 and newer vehicles — many older bill of sale templates and competing websites still reference the outdated 10-year rule.

Damage disclosure. Texas is one of the few states where private sellers are expected to disclose known damage or mechanical defects in the bill of sale. While licensed dealers have separate statutory disclosure obligations, no state form exists for private-party damage disclosure — the bill of sale is where this information belongs. Documenting known issues protects the seller against post-sale claims and gives the buyer a written record of the vehicle's condition at the time of purchase.

As-is statement. Most private vehicle sales in Texas are made as-is, meaning the seller provides no warranty of any kind. Including an explicit as-is clause in the bill of sale establishes that the buyer accepted the vehicle in its present condition and waives implied warranty claims under Texas Business and Commerce Code §2.316.

Does a Texas vehicle bill of sale need to be notarized?

No. Texas does not require notarization of a vehicle bill of sale. The signatures of the buyer and seller are legally sufficient. The title assignment on the back of the certificate of title also does not require notarization in Texas. Some states — Louisiana and West Virginia among them — do require notarization for vehicle transfer documents, but Texas is not one of them.

What taxes and fees does the buyer owe?

The buyer owes a 6.25% motor vehicle sales tax on the purchase price, collected by the county tax assessor-collector at the time of title transfer (Texas Tax Code §152.002). If the stated purchase price falls significantly below fair market value, the county may assess tax based on the Standard Presumptive Value (SPV) instead — a valuation method the Texas DMV derives from wholesale auction data. Gift transfers between qualifying family members may be exempt from sales tax but require a completed Form 14-317 (Affidavit of Motor Vehicle Gift Transfer).

In addition to sales tax, the buyer will pay a title application fee and registration fees at the county tax office. These costs are separate from the bill of sale but are part of the total expense of completing the transfer.

What should the seller do after the sale?

The seller should file a Vehicle Transfer Notification (Form VTR-346) with the Texas DMV within 30 days of the sale. This can be submitted online at TxDMV.gov or by mail. The notification is not legally mandatory, but it creates an official record that the vehicle is no longer in the seller's possession — without it, the seller may continue to receive toll bills and violation notices until the buyer titles the vehicle in their own name.

The seller should also remove their license plates from the vehicle. In Texas, plates belong to the vehicle owner, not the vehicle itself. The seller can transfer the plates to another vehicle or surrender them at the county tax office.