What is Texas vehicle bill of sale?
A Texas vehicle bill of sale is an official document that serves as evidence for the transfer of a vehicle from the seller to the buyer. This document provides the essential information that you will need when registering a vehicle.
A vehicle bill of sale Texas must contain contact details for both the seller and buyer. It will also involve information about the vehicle, as well as the information mileage and vehicle identification number i.e.: VIN. Although a vehicle bill of sale is not technically necessary to register a vehicle with the Department of Motor Vehicles (DMV) in Texas, you will still possibly have to file a Vehicle Transfer Notice, which includes much of the similar information as a Texas vehicle bill of sale.
In case of any ownership disputes or if a new buyer doesn’t properly register a vehicle, having a bill of sale to show proof of your sale or purchase will help protect you.
Requirements of Texas vehicle bill of sale
Texas does not have a specific form that is utilized for a vehicle bill of sale. Instead, Texas has an official application for Texas title or registration. It is alike, but it does not contain all of the details that a bill of sale would have.
Some of the features that you should know about a Texas bill of sale and Texas vehicle registration involve:
1) Texas Vehicle Bill of Sale Form – Not required
2) Notarization – No notary or witness requirements
3) Timeframe – Required to title a vehicle within 30 days from the date of sale
4) Liability Insurance – Registration requires proof of liability insurance
5) Vehicle Inspection – A Vehicle Inspection Report (VIR) provides proof of inspection
Filing out a transfer notice will ensure protection to sellers if the buyer does not register the vehicle immediately. A Texas vehicle bill of sale includes all of the information that is required to file a transfer notice with the Texas DMV.
Click here to find out other, free templates for the Vehicle Bill of Sale.
Registration of a vehicle at the Texas Department of Motor Vehicles (DMV)
After buying a vehicle, it must be registered in the state of Texas.
1) Texas Department of Motor Vehicles Offices – Vehicle Registration Information
2) Days to Register at DMV – 30 days from the date of sale
3) Fees – Fees in Texas vary based on the type of vehicle that is being registered. There may also be inspection fees, local fees, and process and handling fees.
4) Cars and light trucks – $50.75/li>
5) Pickup trucks (6,001 to 10,000 pounds) – $54.00
6) Heavy vehicles – vary based on weight, up to 80,000 pounds
7) Trailers – $45.00 for trailers up to 6,000 pounds
8) Mopeds and motorcycles – $30.00
9) Auto/Liability Insurance – Texas has a minimum required insurance amounts. These include the following coverages.
10) Bodily injury coverage – $15,000 per person and $30,000 per accident
11) Property damage coverage – $5,000 minimum
12) Uninsured motorist coverage – $15,000 per person and $30,000 per accident
13) Sales Taxes – The Texas tax authorities require that a tax of 6.25% be imposed on vehicle sales. If there is a trade-in, the sale price is lowered by the value of the trade-in. The sales tax computation can be found on the Application for Texas Title/Registration.
Documents to bring to renew your registration: a) Texas license plate number; b) government-issued ID; c) vehicle identification number.
How to draft a Texas car bill of sale?
Steps to create the document are more flexible in Texas compared to other states, because Texas does not have a formal bill of sale requirement.
Step #1 – Download and review a vehicle bill of sale form
Utilize a bill of sale form and review it prior to the transfer to make sure that you gather all of the information that you need for the bill of sale. A useful first step is reviewing the Texas Motor Vehicle Transfer Notification requirements.
Some of the necessary information involves:
– Buyer and seller contact information
– Vehicle information including plate number, make, model, year, Vehicle Identification Number (VIN), and title document number
– Date of sale
– Whether you saved the plates [for some types of sales]
– Mileage information
Step #2 – Gather Information required for the bill of sale
Now that you know what information you will need to provide the Department of Motor Vehicles for the transfer of the sale, collect that information so you can involve it on the form. Part of this step should also be the sale negotiation.
Step #3 – Complete and sign the bill of sale
Though it is not mandatory in Texas, it is always a good idea to have both the seller and buyer sign any type of bill of sale in Texas. A good idea might be as well to sign a document in front of a witness (it is not mandatory as well).
Step #4 – Visit the Texas Department of Motor Vehicles to register your vehicle
While it is not required, the Texas Department of Motor Vehicles suggests that both the buyer and the seller visit the DMV together to register and transfer the new vehicle.
Below you can download for free, a template of the Texas Motor Vehicle Transfer Notification, 130-U Texas Title and Registration, and vehicle bill of sale: