When trading cars in Texas, the parties are encouraged to sign a vehicle bill of sale to record the transaction. A Texas motor vehicle bill of sale can act as proof of ownership and may be necessary to register a vehicle. These documents have multiple advantages for both the buyer and the seller, so one should use the form whenever possible.
Are Bills of Sale Necessary for Trading Motor Vehicles in Texas?
No, residents of Texas aren’t obliged to utilize bills of sale when exchanging motorized vehicles. This document may act as evidence of ownership, but it’s not required to register and sell a vehicle or obtain a Texas title. However, a copy of this paper may be needed to transfer ownership over a vehicle to a resident of another state. When selling vehicles to different states’ citizens, make sure to use it to avoid legal disputes.
If you ever change the state of residence, the document may be needed to register a vehicle with the local authorities. In addition, this form lifts liability for the asset from a seller and transfers it to a buyer. In case the sold vehicle is abandoned or involved in a crime, the seller won’t be held accountable. With this, a bill of sale is required to sell a used trailer with a gross weight of under 4,000 pounds.
How to Register a Vehicle in Texas?
After establishing residency in the state or purchasing a new vehicle, you are obliged to register the car within 30 days. The documents must be submitted to a local Department of Motor Vehicles office. To obtain a Texas title and license plates, you need to provide the following papers:
- Form 130-U. Also known as an Application for Texas Title, this form must be completed and signed by an applicant.
- Vehicle Inspection Report. If a vehicle was imported from another state or country, it must go through an inspection.
- Fees and taxes. The amount of charged taxes may vary depending on the vehicle’s origin and type.
- Applicant’s ID. A state ID or Texas driver’s license is needed.
- Evidence of ownership. If there’s no title available, you might use a bill of sale, invoice, or another document proving ownership.
If you’re looking for a printable template of a Texas motor vehicle bill of sale in PDF, consider checking out our library. We also offer a free document builder for designing customized solutions.