What a bill of sale does
A bill of sale is a simple written record that a seller sold a specific item to a buyer for a specific price on a specific date. It protects the seller (proof the item and its liability passed to the buyer) and the buyer (proof of ownership and price, useful for registration, tax and disputes).
What’s included
- Seller and buyer names and addresses
- Detailed description, VIN or hull ID or serial number, and odometer reading for vehicles
- Price, payment method and date
- Seller’s statement of ownership and no liens
- As-is clause or a basic condition warranty
- Title and registration responsibilities for vehicles, boats and trailers
- Optional notary acknowledgment
Selling a vehicle in Texas: the full checklist
- Fill in the bill of sale with the VIN and odometer reading, and both sign it.
- Sign the title in the seller’s section and give it to the buyer. Never hand over an “open” title without the buyer’s name.
- Complete Form 130-U (Application for Texas Title) with the buyer. The buyer files it with the county tax assessor-collector, usually within 30 days.
- Keep your plates if your county requires it, and remove your toll tag.
- File a Vehicle Transfer Notification with the Texas DMV within 30 days. This is what protects you from the buyer’s future tickets, tolls and crimes.
- Cancel your insurance once the transfer is complete.
Tips for a safe private sale
- Meet in a public place — many police stations offer safe exchange zones.
- Verify the money before handing over keys and title.
- Check for liens. Buyers should ask for proof that any loan has been paid off and released.
- Inspect before buying. With an as-is sale, the buyer has little recourse after paying. A pre-purchase inspection by a mechanic is money well spent.
Not legal advice
A bill of sale doesn’t replace the official title documents. Requirements for boats (Texas Parks and Wildlife), trailers and manufactured homes differ, so check with the relevant agency.
Frequently asked questions
Is a bill of sale required in Texas?
For a vehicle, the official transfer happens on the title and the Form 130-U title application filed with the county tax office. A bill of sale isn't always required, but it's valuable proof of the price, date and condition of the sale for both buyer and seller.
Does a bill of sale need to be notarised?
Usually not in Texas, but notarising adds proof that the signatures are genuine. Tick the notary option to add an acknowledgment block.
What does 'as is' mean?
The buyer accepts the item in its current condition, including any hidden defects, and the seller makes no promises about its quality. It's standard for private sales.
What should I do after selling my car?
Sign the title over to the buyer, keep a copy of the bill of sale, remove your licence plates if required, and file a Vehicle Transfer Notification with the Texas DMV within 30 days so you're not liable for the buyer's tickets or tolls.
Can I use this for items other than vehicles?
Yes. Choose 'Other item' for furniture, electronics, equipment, livestock tack or anything else of value.
What payment method is safest?
Cash counted in person or a cashier's check verified with the issuing bank. Be wary of overpayments and requests to refund the difference — a common scam.
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