Free Texas Bill of Sale Forms – Templates – Editable

When transferring property ownership, it is crucial to have a transaction record. A bill of sale is an example of such a record in Texas. The document states that an individual has purchased the property from another individual. It thus transfers the ownership of goods. This can be any property, from a car to a firearm and other personal property. Once completed, it is an official record of the goods/property sold. The bill serves as a record-keeping tool for both parties and can be presented as a requirement for different applications with the state.

This article will discuss what a bill of sales is in Texas, the different types, and what information to include in the bill when buying or selling property.

Texas Bill of Sale

A Texas bill of sale indicates that a Texas resident has assigned a property title to another party in a transaction. It conveys the legal ownership of tangible items and can be necessary for vehicle transfers or when selling firearms, boats, livestock/animals (e.g., cattle, horses, etc. Typically, a bill of sale in Texas will indicate the seller, buyer, item(s) purchased, and terms of the purchase. They are legally binding contracts. As a result, they are used for tax purposes and to register the title of the purchased property.

The type of bill of sale in Texas depends on the property being transferred. As a result, multiple bills exist to match the specific type of transaction within the state. Examples of such types are as follows:

What to include

Specific sections are typically filled to complete a boat bill of sale in Texas. These include:

• The effective date of the transaction
• A description of the water vessel – this includes the make, model year, and serial number
• Purchase price exclusive of the price of the trailer
• Seller’s information
• Buyer’s information

Documents required for seller and buyer

Specific documentation is needed to complete the transfer of a water vessel in Texas lawfully. These documents include:

• A Texas bill of sale
• A filled Form PWD 143 – Boat Title and Registration Application.
• Form PWD 231 – release of lien if the vessel has a lien attached to its title.
• New vessels should have a Manufacturer’s Certificate of Origin.
• The original title of vessel assigned to the buyer – if the vessel is being bought from another person
• Proof payment of all applicable taxes and registration fees
• Form PWD 504 – Verification of Vessel or Outboard Motor Serial Number form. This is needed if the vessel was formerly registered in another state. 

Therefore, under 18 U.S.C. § 922(g), the following individuals are prohibited from buying firearms:

• Fugitives evading justice
• Individuals convicted by a court and imprisoned for a more than a year
• Addicts or unlawful users of controlled substances as defined under section 102 of the Controlled Substances Act, codified at 21 U.S.C. § 802
• Mentally unstable individuals or those that have been committed to any mental institution
• Armed forces personnel who has been dishonourably discharged
• Illegal immigrants
• Individuals or persons who have renounced their U.S. citizenship
• Individuals convicted of domestic violence
• Persons under a restraining order, for example, for stalking, harassment, or threatening an intimate partner or the partner’s child

Residents of Texas aged 21 years and above can carry a concealed weapon without a license to carry (L.T.C.) as long as they do not fall under the categories prohibited by federal law. Concealed carry is allowed in non-prohibited places as outlined under H.B. 1927. However, firearm owners can apply for an L.T.C. to benefit from its provisions, such as being recognized as licensed firearm carriers in other states, otherwise known as reciprocity.

Texas firearm owners can benefit from reciprocity in all U.S. states except Minnesota, Maine, New Hampshire, Vermont, Wisconsin, Oregon, and Wyoming. Notarization of the bill of sale is not mandatory unless both parties deem it necessary. 

What to include

Since there are no laws governing firearm registration in Texas, there is no statutory bill of sale in Texas for firearm sale and purchase. However, some of the necessary items of such a bill of sale include:

• The date of sale/transaction
• The seller’s and buyer’s information
• A signed affidavit certifies that the buyer is legally eligible to purchase, receive and own firearms and ammunition in Texas.
• Description of the firearm – make, model, caliber, and serial number
• Price of the firearm
• The seller’s and buyer’s Texas concealed weapon license numbers
• The buyer’s and seller’s signatures

What to include

The bill of sale should contain the following:

• The date the transaction took place
• The seller’s contact information
• The buyer’s contact information
• Description of the vehicle – year, make, model, and V.I.N. (Vehicle Identification Number)
• Purchase price
• The driver’s license number of the buyer
• The license plate of the vehicle, if it has already been registered
• The condition of the vehicle
• Location (county) where the transaction took place
• The seller’s and buyer’s signatures. The D.M.V. does not require a notarized bill of sale, but you may want to ask for one for additional proof.
• The notary public’s signature and date of notarization
• A statement of the penalty of perjury. The statement clarifies that intentionally misrepresenting information in the Texas motor vehicle bill of sale is a third-degree felony punishable by a year in jail or a $4000 fine.

Additional considerations

Buyers and sellers can craft their motor vehicle bill of sale in Texas. The bill of sale would be lawfully enforceable as long as it includes all the required items. In addition, the document can be prepared in another language and be valid.

Three copies of the bill of sale should be created. The buyer and seller each get a copy of the bill of sale, and the third copy should be sent to the D.M.V. 

Significance of Texas vehicle bill of sale

As a seller, it is imperative to use a Texas bill of sale when selling a car. This is because it protects you against any liabilities after the purchase. It officially transfers ownership to the buyer and proves that the buyer is now responsible for all motor vehicle-related expenses and liabilities. For instance, should the buyer get into an accident without ever receiving a bill of sale, they can claim to have never purchased the car from the seller. This transfers the liability to the seller. However, with a bill of sale, there is a credible paper trail as evidence of the purchase.

As a buyer, the bill of sale offers protection from any future claims from the seller that they never sold the car to the buyer. In such a case, the buyer risks losing the vehicle and the money used to buy the car. However, the bill transfers outright ownership to the buyer and acts as concrete proof that the transaction took place, thus protecting the buyer.

In addition, a Texas bill of sale records the vehicle’s condition at the time of sale. Therefore, if the vehicle is later determined to have pre-existing issues, the buyer can use the bill of sale as a reference that the seller never disclosed the said issues. This then transfers the liability to the seller, thus protecting the buyer.  

Where to Register a Vehicle

All vehicles bought in Texas and driven on Texas roads must be registered with the state. If the purchase is made through a dealership, the arrangement usually involves the dealer registering the vehicle on the buyer’s behalf. However, for private sales, registration should be done by the buyer. So, after purchasing the motor vehicle, the buyer should register it. This should be within 30 days after the purchase. Then, the registration application and documentation should be filed with the county’s tax office.

Certain documents must be obtained to complete a vehicle purchase through a Texas bill of sale. These include:

For sellers

• Form 130-U – a Texas Certificate of Title application form to present to the buyer
• An odometer disclosure in the bill of sale
• A signed vehicle title
• Form VTR-346 or Vehicle Transfer Notification 
• An additional liens disclosure if there is more than one lien on the vehicle
• If the car was obtained as a gift, an affidavit of Motor Vehicle Gift Transfer

For buyers

• A signed Form 130-U – a Texas Certificate of Title and Registration application form
• Motor vehicle P.O.A. (power of attorney) if the buyer is using an agent to act on their behalf
• State ID or Driver’s license
• Form VTR-346 or a Texas bill of sale to be presented to the D.M.V.’s Title and Registration Division. The vehicle must be titled/registered within 30 days. Processing of the application will then typically last 20 days (estimated).
• A completed Form VTR-272 – application for registration purposes only if the vehicle has a lien.
• Proof of liability insurance that meets the state’s minimum requirements. These requirements are $30 000 for injuries per person, $60 000 for injuries per accident, and $25 000 for the property per damage.
• A vehicle transfer permit is needed to lawfully drive the vehicle if the car was purchased when the county tax office was closed and the seller removed its license plate. The permit validity is five days.
• Form VTR-40 should be used to record the vehicle’s odometer reading
• A motor vehicle inspection

On top of securing the mentioned details, as the buyer, you should pay associated registration fees and sales tax (which is 6.25 of the vehicle’s valuation or purchase price, whichever is greater). If the vehicle was obtained from a dealership, the dealer is legally expected to complete the registration applications on the buyer’s behalf. They will then provide the necessary receipts to the buyer.  

Important: Having and providing the relevant documentation is part of completing a successful vehicle ownership transfer. Therefore, other measures should be taken as a precaution. These include having the vehicle’s condition inspected by a professional mechanic if the buyer cannot do so themselves. Also, run background checks on the vehicle’s V.I.N. to determine if it has ever been in an accident or has been salvaged.  

A bill of sale is a legal business document proving an ownership transfer between a seller and buyer. A Texas bill of sale is a Texas-specific document. It is a vital document for transactions involving different personal property, such as motor vehicles, boats, animals, etc., within or outside Texas state. Ideally, a bill of sale should be used for all transactions of vehicles and boats, but it is optional for firearm sales within the state.

The type of bill of sale varies depending on the type of property traded in Texas. However, regardless of the type, most bills of sale will have consistent sections such as seller and buyer’s information, property description, transaction date, and purchase price.