Understanding Texas Bill of Sale Basics
A Bill of Sale in Texas is a legal document confirming property transfer from one individual to another. It is an important affidavit that serves as proof of ownership, similar to a receipt but with greater legal significance. A well-drafted Bill of Sale showcases your attention to detail and assures the legality of the transaction.
Federal Law Alert
- Federal Law, 49 U.S. Code § 32705, requires a bill of sale forms must include a statement about the vehicle’s mileage. Vehicles greater than ten (10) years old and over 16,000 pounds are exempt.
Although possession of a Bill of Sale is not strictly required by law in Texas, it is highly recommended as it establishes a strong foundation for ownership rights and can help to avoid potential legal complications.
What to Include in a Texas Bill of Sale?
- Date of Sale: Ensure to record the date on which the sale occurred.
- Parties’ Information: Make sure to include the full names of both parties and the addresses of both the seller and the buyer in the document.
- Description of the Item: Provide a thorough explanation of the product for sale, including all relevant details and specifications. Please ensure that the description is accurate, precise, and free from spelling, grammar, or punctuation errors.
- Sale Price: State the previously agreed price for the item. Let me know if you need any assistance with this.
- Odometer Disclosure: Ensure that the odometer reading is included at the time of sale for any vehicle sales.
- Warranty Information: Confirm whether the item comes with a warranty or is being sold “as is.”
- Signatures: To make sure the transaction is complete, it’s important that both parties sign the Bill of Sale document.
Source: Texas DMV