A Texas Vehicle Bill Of Sale: Requirements & How To Write One

in Buying By State
Texas gas station

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If you want to buy or sell a vehicle in Texas, there are several documents you need to fill out to complete the process and track of the official transaction. One of those is the Texas vehicle bill of sale. If it’s your first time with this paper, you might wonder - what are the requirements in Texas? How do you write one?

If you want to learn more about a vehicle bill of sale in Texas, you’ve come to the right place. The more you know about this document, the easier it will be to complete the buying and selling process and write one yourself. Read on to learn more about the requirements for a bill of sale, how to write one in Texas, and more.

Texas Bill of Sale Requirements

If you want to make a Texas vehicle bill of sale, there are a few items you must have on the document. These will ensure every aspect is covered and clear between parties.

According to idrivesafely.com, here are some requirements for a Texas Bill of Sale:

  • Date of sale: Document the exact date the car was sold.
  • Sale price: Write the precise cost of the vehicle in the transaction. 
  • Person who previously owned the car: If you’re the seller, right down your name. If you’re the buyer, ensure the seller’s name is on the paper.
  • Vehicle identification and license plate number: The vehicle identification number is usually available on the car’s title, and the license plate number should still be on the back of the vehicle.
  • Full name and address of buyer and seller: Get the full legal name and address from both parties, buyer and seller.
  • General description of the vehicle: Note the appearance, mileage, and other descriptions.

These must be on the bill of sale to make it legal between the buyer and seller.

Ensure you have all these items on your bill of sale in Texas during its creation. Also, plenty of templates are available online if you don’t want to map it out yourself. Whatever you choose, these descriptions are necessary and will officially dictate the transaction between the buyer and seller.

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Is A Bill of Sale Required to Register a Vehicle in Texas?

According to pandadoc.com, a bill of sale is required for a car or boat if you purchase the machine within the state limits. Also, it provides a way for the buyer and seller to have proof of the transaction, which provides comfort all around. 

A bill of sale in Texas technically isn’t a legal requirement - but they are a strong recommendation. It can be complicated to switch ownership, and a bill of sale will release liability if you’re selling the car. Plus, it will bring an extra layer of defense against fraud and miscommunications.

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Does the Bill of Sale Mean Ownership?

A Texas vehicle bill of sale doesn’t define ownership, but it does prove a transfer occurred from one party to another. It shows that both people consented to the agreement, which will help if you hit legal trouble.

Although it isn’t legal proof of ownership, it’s always a good idea to have a Texas bill of sale on hand. You never know when something will go wrong. Proof will make the difference between winning and losing a case.

What Are the Benefits of a Bill of Sale in Texas?

Since a bill of sale in Texas isn’t a legal requirement, it might seem like it’s best to just skip the creation of the document altogether. However, tons of benefits appear with the creation of this paperwork. The better you know these, the more motivated both parties will have to create the bill of sale.

According to progressive.com, here are some benefits to a Texas bill of sale:

  • Release of liability: If the new owner of the car gets into trouble, the bill of sale will ensure you don’t get into trouble for the accident.
  • Proof of transaction: Though the bill of sale doesn’t work as legal proof of ownership, it does work as proof of transaction between parties.

You’ll get benefits from the creation of the bill of sale.

You won’t get a physical receipt in this process, so a bill of sale is the closest thing possible. Though it might seem like a pain, it’s well worth it for the security you gain as the buyer or seller.

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Conclusion

A Texas vehicle bill of sale is a critical item to consider and create when transferring ownership from one person to another. It’s useful for everyone involved, from offering release or liability to creating proof that the transaction took place.

We hope this information was helpful! With this knowledge about this document, you will write and complete the bill of sale with security. It’s not too complicated, but it is one of the most helpful tools you will hold in the release or gain of a car.

Frequently Asked Questions:

What is a bill of sale?

A bill of sale is a piece of paper that acts as a receipt for a private sale from one party to another. They hold valuable information.

Bill of sale items includes:

  • VIN
  • Purchase date
  • Description of car
  • Amount paid

Each builds a proof of purchase for the car.

Of course, a bill of sale doesn’t mean legal ownership. It does, however, mean the transaction occurred. 

Does Texas require a bill of sale?

A bill of sale in Texas isn’t required. However, it’s a good idea to keep track of the sale for your protection and proof of the original state of the car.

What do I do after getting a Texas bill of sale?

A bill of sale isn’t proof of ownership. Thus, you must complete a title transfer if you get the car.

You must title the machine within 30 days of the sale. The bill of sale might be helpful in the DMV.

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