The Texas bill of sale is a document that provides the most important details about the personal property transfer between the seller and the buyer.
The bill of sale must include the following sections:
Mandatory Information
Information about the buyer and the seller
Description of the transferred item
Purchase price
Buyer and seller disclosures
Signatures of the parties
Each of the above-mentioned sections contains different information depending on the type of transferred item, payment terms, and federal and state requirements.
The bill of sale is most commonly used for motor vehicle transfers. It can serve as a complementary document to the vehicle title, including all the information not provided in the title. Finally, it can serve as proof of ownership for the vehicles without the title.
Texas Bill of Sale Parties
The main parties to the bill of sale are the buyer and the seller. They can authorize an agent to sign the bill of sale on their behalf by issuing a power of attorney to them.
Seller
A seller, or transferor, transfers the ownership of the item to the buyer in exchange for the purchase price. Note that there can be more than one seller listed in the bill of sale.
Buyer
A buyer, or transferee, is a party to the bill of sale who pays the purchase price and obtains the purchased item in return. Similarly, more than one buyer can be listed in the bill of sale.
Buyer and Seller Disclosure
To prevent liability over the item’s condition after the purchase, the seller should disclose all the damages and flaws of the item in the bill of sale.
In addition, the seller should include the “as is” condition. This means that the item is sold in its existing condition with all the damages and flaws, and no guarantees are issued for the item.
Texas Bill of Sale Description of Goods
This section provides the most important information about the transferred item. It includes different types of information depending on the type of item.
For example, a motor vehicle description should include the following:
Mandatory Information
Make, model, and production year of the vehicle
Vehicle identification number (VIN)
Body type and color of the vehicle
Vehicle horsepower
Registration number (if applicable)
Description of all the damages and flaws
Details about the additional equipment sold with the vehicle
The local DMV office often provides a bill of sale form that contains all the details that should be entered. However, if the parties want to include additional details, they can draft the bill of sale on their own according to their needs due to the flexible form of the bill of sale.
Texas Bill of Sale for Motor Vehicles (Cars) Requirements
All motor vehicles in Texas must be titled and registered. The application can be submitted online or through the local county tax office.
Out-of-State Vehicles
An out-of-state vehicle must be registered in Texas no later than 30 days from the moment it is brought to Texas. The applicant must submit the title issued by the state of origin. In the event that the state where the vehicle comes from does not issue a title, the applicant can submit the bill of sale as proof of ownership.
Abandoned or Junk Vehicles
The Texas DMV provided a junk vehicle bill of sale form. However, you can draft your own bill of sale if you want to include additional details and customize it to your liking.
Vehicles Sold by Dealers
Car dealers in Texas are authorized to submit the title and registration application on your behalf. In the meantime, you can use the bill of sale as proof of ownership.
Vehicles Sold by Private Parties
The private parties should use the bill of sale when transferring ownership of the motor vehicle in order to prevent potential misunderstandings about the main elements of their deal.
Texas Bill of Sale for Boats (Vessel) Requirements
All the boats, motorboats, and personal watercraft must be titled and registered with the Texas Parks and Wildlife Department.
Parties can fill out the PWD 143 Form, which serves as the vessel/boat title and registration application. However, for any additional details, the parties should draft an additional bill of sale.
Texas Bill of Sale for Firearms Requirements
There is no official requirement in Texas for drafting the bill of sale when transferring firearm ownership.
However, the bill of sale can serve both parties. It limits the responsibility of the seller after they hand over possession of the firearm to the buyer. On the other side, the buyer will have a valid proof of firearm ownership since there is no firearm registration in Texas.
Texas Bill of Sale for Horses Requirements
The horse bill of sale in Texas should include the following information:
Mandatory Information
Names, addresses, and ID numbers of the buyer and seller
Name, breed, age, and gender of the horse
Registration number (if available)
Information about the condition of the horse
Details about any additional equipment that is sold with the horse
Texas Bill of Sale for Trailers (RVs) Requirements
All the trailers in Texas must be registered.
When it comes to trailer titling, it is required only for trailers that are 4,000 pounds in gross weight. The farm trailers also must be titled if they are above 34,000 pounds in gross weight.
To title and register your vehicle, you must submit proof of ownership to the local county tax office. A valid proof of ownership for the trailer can be:
Forms of Proof of Ownership
Manufacturer's Certificate of Origin
Trailer title
Bill of sale
Out-of-state registration receipt
Texas Bill of Sale Other Requirements
The bill of sale form is quite flexible, as the parties can draft it in any way that is suitable for them, as long as it contains all the necessary elements.
It can be drafted in any language that both the seller and buyer can understand. However, when submitting your bill of sale to the government office, include the official English translation with your bill of sale.
The bill of sale should be drafted in at least two copies, so both the seller and buyer can keep one copy for their records. If you need to register your item, make sure you provide one additional copy to the authority in charge of the item registration.
Texas Bill of Sale Taxes
A bill of sale can serve as proof of purchase price and can be submitted to the tax authorities for determining the sales tax.
Even if the item is transferred as a gift, the parties should provide an estimate of the item's purchase price for tax purposes.
Texas Bill of Sale FAQ
Yes, the handwritten bill of sale is also a valid document in Texas as long as it contains all the necessary details.
Both the seller and the buyer should sign the bill of sale. In some cases, additional witnesses are also required to sign the bill of sale in order to confirm the authenticity of the document.
You can find a bill of sale form at your local county tax office. However, they don’t provide a bill of sale form for all types of items. In such cases, you can download one of the customizable bill of sale forms available on our website.
The seller benefits from signing the bill of sale by limiting their responsibility after the ownership transfer.
The buyer benefits from the bill of sale by having valid proof of ownership for the items that are not titled.