Texas motor vehicle bill of sale is a document, in which detailed information illustrates that a motor vehicle has been legally sold in the above state. E.g.: Buying or selling a car from the private seller without using services of a dealership can be quite tricky and unsafe process. A bill of sale for car in Texas is a good way of recording that the vehicle sale has taken place. Though, in the state of Texas, a bill of sale is not an absolute requirement to be presented when transferring the motor vehicle from one owner to another, it is always a good idea to create a document in case you need to prove you are no longer liable for the vehicle after you transfer it. Texas vehicle bill of sale is a perfect way of extra protection against misapprehension or fraud.
What information should Texas vehicle bill of sale contain?
As you know, many standard, electronic forms of a bill of sale for motor vehicle are available online and at particular county tax collector’s office, though it is absolutely acceptable to make such kind of form on your own. You just have to include specific information to make sure that it is effective and complete. The information that should be included in the motor vehicle bill of sale is as follows
- The date of the sale
- The buyer’s and the seller’s full names and addresses
- Description of the vehicle being sold including its make, model, and condition
- The motor vehicle identification and license plate numbers of it
- Information about the sale, such as, price of the vehicle
- Asserting signatures from both sides
Benefits of Texas vehicle bill of sale for Seller:
You have every reason to complete a bill of sale when selling your motor vehicle, even though it is not a legal requirement in the state of Texas. If the person purchasing your motor vehicle causes an accident with it after the sale, he/she could potentially deny having bought it from you, and you could be held minimum partially responsible for what the new owner did with the motor vehicle. A motor vehicle bill of sale provides strong evidence that a transfer of the object was accomplished, and therefore all culpability now rests with the new holder of the motor vehicle. It also serves as a receipt for your own personal records.
Benefits of Texas vehicle bill of sale for Buyer:
It is of a good possibility that after car was purchased from a private party, later they may claim that they have never sold you the motor vehicle and that it still legally belongs to them. It means you will lose the motor vehicle and never see the money you paid for it again, if they are ever successful at this. A bill of sale safeguards you, and proves that transfer was made. It also documents the condition of the vehicle at the time of purchase, in case it is later discovered that there were significant damages which the seller never revealed. When holding completed form of bill of sale for motor vehicle, none of these will take place.
Tips for the Buyer
Here you can find some tips when purchasing a motor vehicle:
(These actions will ensure secure, satisfying and smooth transfer of the motor vehicle for the both sides of the bill)
- Make sure to fully checkup the condition of a pre-owned motor vehicle. If you do not have enough experience, try to address professional mechanic
- Run a background check on the motor vehicle’s VIN (Vehicle Information Number includes combination of 17-digit numbers and letters that are utterly distinctive to given vehicle. Usually, it may be found on your insurance card, vehicle registration card, vehicle loan document, on a certificate of title and on the vehicle itself, typically on the driver’s side door or on the dashboard) to see if it has ever been in an accident, if it is salvaged. Above action prevents the buyer to be misled by the seller
For your information:
Title of a vehicle is a document that certifies the ownership of the vehicle. If this document is absent, there is no chance of proving that vehicle belongs to a certain person.
The title of the vehicle verifies ownership, which is crucial if:
- Motor vehicle is stolen
- Owner desires to sell the motor vehicle
- Motor vehicle is impounded
- The motor vehicle was used in a crime prior to your ownership or after you vended it
In the Texas state, you have 30 days to get the motor vehicle titled from the starting sale date. When buying a motor vehicle from a private seller, it is highly recommended that both buyer and seller appear at the local County Tax Office (CTO) with the documents needed.
These documents are:
- The motor vehicle title certificate
- Approved Lien Release
- Completed application form (Form 130-U) Find the fillable form below
- Motor vehicle inspection report from the seller in accordance with §548.051
- Proof of valid Texas car insurance policy
Here you can find more templates
Note:
If the seller wants to maintain their license plates, you will need to download a Vehicle Transit Permit. This is a provisional, 5-day license that will allow you to legally travel only to the County Tax Office to finalize the registration procedures.
The motor vehicle title normally includes: Year, make, model or body type of the motor vehicle; Motor vehicle color; Odometer reading; Date, when odometer reading was done; Owner of the motor vehicle; Owner’s address; Title issuance date. It also may include a title number, the weight of the motor vehicle, the engine number, the number of cylinders in the engine, the type of fuel used in it, and the license plate number. A motor vehicle title should be signed by of one or more state officials administering motor vehicles or revenue collection.
Information for buyer:
- In case of a car purchase, the buyer usually will not receive the title until they have settled their auto loan
- When a car changes owner, the buyer must acquire a new title from the state they live in after the existing title is transferred to them by the seller. So, the buyer is completely accountable for obtaining a new title in their name from the state where they live. The buyer should find out the necessary, updated information and steps through consulting motor vehicle website of their state of residence
- The buyer should receive a motor vehicle bill of sale, in particular, Texas vehicle bill of sale from the seller and a copy of the signed-over title document
- If you bought a second-hand motor vehicle and seller did not sign over the title on your name you can simply go to the nearest surety agency and obtain the Certificate of Title Surety, also known as bonded title. These kinds of titles are issued for different types of motor vehicles as cars, travel trailers, trucks, buses and campers
- When you purchase a motor vehicle by a private owner, you will have to handle the process of obtaining the title, registration and license plate on your own. Unlike when you buy a motor vehicle from the dealer. In this case, all the procedures will be dealt by the dealer, though, this service will cost a bit more
- In Texas, title transfer notarization is necessary for assuring the document authenticity
- Before signing any kind of document, the buyer should verify the Vehicle Information Number (VIN) on the title matches the VIN on the car itself. They should also make sure there are no liens against the motor vehicle that the seller did not revealed by checking the VIN in the motor vehicle database of their state.
Click here to download free template of Texas vehicle bill of sale and form 130-U