Vehicle Bill of Sale in Texas — Free Template & Guide

When creating a vehicle bill of sale in Texas, the following requirements must be met:

• Identification: All parties must be identified by their full legal names and complete mailing addresses as used in Texas.
• Date and signatures: The document must be dated and signed by all relevant parties. Both the buyer and seller must sign the bill of sale. Texas does not require notarization, but the title assignment must be signed by the seller.
• Accurate information: All details included in the document must be accurate and truthful. Providing false information on a legal document in Texas can result in penalties.
• Vehicle details: The VIN, year, make, model, body style, and odometer reading must be included. Federal odometer disclosure is required for vehicles less than 20 years old.
• Form 130-U: The buyer must complete Texas Form 130-U (Application for Texas Title and/or Registration) and submit it to the county tax assessor-collector's office.
• Sales tax: Texas imposes a 6.25% motor vehicle sales tax. The buyer pays this at the county tax assessor-collector's office when applying for the title. The $33 title fee also applies.
• Copies: All parties should retain signed copies of the completed document for their records. Texas law may specify retention periods for certain document types.

Meeting these requirements helps ensure that your vehicle bill of sale will be accepted by Texas courts, government agencies, and other institutions. Our form builder prompts you for all required information and generates a document that satisfies these TX requirements.

After creating your vehicle bill of sale in Texas, you may need to take additional steps depending on the type of document and its purpose:

1. Complete the document: Use our online form builder to fill in all required information and generate your Texas vehicle bill of sale.
2. Review and sign: Both parties should carefully review the document for accuracy before signing. Texas does not require notarization for a bill of sale, but both parties must sign the document.
3. Make copies: Create copies for all parties involved. Keep original signed documents in a safe location.
4. Transfer title: The seller must sign the back of the Texas title certificate and provide it to the buyer along with the bill of sale.
5. Submit to county tax office: The buyer must bring the signed title, Form 130-U, bill of sale, proof of insurance, and valid ID to the county tax assessor-collector's office within 30 days. The buyer pays the 6.25% sales tax and $33 title fee at this time.
6. Vehicle inspection: Texas requires a passing vehicle inspection before registration. Ensure the vehicle has a current inspection sticker or obtain one before visiting the tax office.
7. Keep for records: Retain your copy for at least the period required by Texas law, which varies by document type but is generally a minimum of three years for tax-related documents.

The Texas Department of Motor Vehicles (TxDMV) provides online resources and forms. County tax assessor-collector offices handle title transfers and registration in person.

Texas has specific laws that affect how vehicle bill of sale documents are created, executed, and enforced:

Texas Transportation Code Section 501.0721 governs the title transfer process and requires application within 30 days. Section 501.0234 addresses the motor vehicle sales tax of 6.25%. The Texas Occupations Code Chapter 2301 regulates motor vehicle dealers. Texas also requires odometer disclosure under both federal law and state regulations. Sellers should be aware that Texas is a title-holding state, and the title must be properly assigned for a valid transfer.

It is important to be aware of these TX-specific regulations when creating your vehicle bill of sale. Our templates are designed to account for common state requirements, but for complex legal situations, consulting with a Texas-licensed attorney is recommended.

Here are important tips for creating a vehicle bill of sale in Texas:

• Verify all information: Double-check names, addresses, dates, and amounts before signing. Errors can cause delays or legal complications in Texas.
• Keep copies: Always retain signed copies of the completed document. Store them in a safe, accessible location.
• Complete Form 130-U: Download and fill out Texas Form 130-U before visiting the county tax office to speed up the process.
• Transfer within 30 days: Texas law requires the buyer to apply for title transfer within 30 days. Late transfers incur penalties of up to $250.
• Get a vehicle history report: Before purchasing, check the vehicle's history through the National Motor Vehicle Title Information System (NMVTIS) to verify there are no liens, salvage titles, or flood damage.
• Act promptly: If the document requires filing with a Texas government agency, do so within the required timeframe to avoid penalties or complications.
• Seek professional advice when needed: For complex situations or high-value transactions in Texas, consider consulting with a local attorney to ensure your interests are fully protected.