Texas state law requires an official title for all car sales. The seller is required to provide a certified title to the buyer when ownership of the vehicle is legally transferred. The title protects the buyer and the seller against undisclosed information that could affect the validity of the sale.
Odometer Reading, Signature and Date
DMV.org in Texas states that a current odometer reading is required for all vehicles that are less than 10 years old. The seller reports the odometer reading on the title and signifies whether the miles are actual, not actual or exceed mechanical limits. The seller lists the sale price, signs and dates the back of the title and gives it to the buyer.
The seller gives the buyer his most current registration receipt and a signed and dated Application for Texas Certificate of Title (Form 130-U). The Texas Department of Transportation requires the new car owner apply to the county assessor's office for a new certificate of title. The assessor sends the application to the department of transportation within 24 hours of receiving the application. According to the department, the seller lists all outstanding liens and lienholders' names on the application. It is the new buyer's responsibility to submit the application to the county tax office.
If the seller is uncertain whether the buyer will submit the new title application, he can submit a vehicle transfer notification to the Texas Department of Transportation. The seller can accompany the buyer to the assessor's office to ensure that the transfer notification is filed, but she is not required to do so. The transfer notification protects the seller's interests in the car sale.
Bill of Sale Not Required
A Bill of Sale is not required to transfer a car title in Texas. A seller can complete a Bill of Sale for added documentation, but it is not required by the Texas Department of Transportation. A seller does not submit a Bill of Sale with Form 130-U or with a transfer of title application.