A Texas bill of sale is required if you are selling your car. The importance of this document should not be overlooked, as the car sale cannot be legally completed until you properly file a Texas bill of sale. Before you sell your car, make sure you can handle this important step of the sales process.
Proof of Sale
The primary purpose for a bill of sale is to provide legal documentation of a car sale between two private parties. When you sell your car to a professional dealership, there is a lot of paperwork that keeps a record of every step in the sales process. Private party sales do not have the same kind of paper trail, so a bill of sale is needed as a way of having an undisputed record of the transaction.
Required Information
The information required for a bill of sale in Texas varies slightly depending on where you live. Generally speaking, the information will include the names of the buyer and seller, how much is being paid up front and in total and the car's identifying information like the VIN number, license plate number, make and model. You may also need to include previous owners and the mileage at the time of the sale.
DMV Bills of Sale
The DMV in your county will have a standardized bill of sale form that you can request. Due to the differing format, required information and other private party car sale regulations among Texas counties, using the DMV bill of sale form is usually the recommended course of action. Standard blank bill of sale forms can also be found online. Both the forms at the DMV and those you can get online are free of charge.
Homemade Bills of Sale
You might not be able to get online or to the DMV before a serious buyer is at your door and ready to take a car off of your hands. If you have experience with private party used car sales, or you have seen a completed Texas bill of sale in the past, you can create your own form. In most counties, the forms are generally straight forward. Be sure you have all of the information you need included in your homemade form before completing the sale of your car.
Before you try to sell your used car privately, you need to understand the importance of Texas bills of sale. You should know the information you need and be prepared to follow the guidelines or standardized form for your county.
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