Paperwork Needed to Sell or Buy a Car in Texas
When selling a car in Texas, you'll need to prepare several key documents to ensure a smooth and legally compliant transaction. Here's a comprehensive list of the paperwork required and some helpful links to guide you through the process.
1. Vehicle Title
The vehicle title, or 'Certificate of Title,' is the most important document in a car sale. The seller must fill out the back of the title, including the buyer’s information and the odometer reading. If there is a lien on the vehicle, it must be released before selling.
Texas DMV - Transfer a Vehicle Title
2. Application for Texas Title and/or Registration (Form 130-U)
This form is completed by the buyer, but the seller should assist. It is submitted when the buyer applies for the new title and registration in their name.
3. Vehicle Inspection Report
Texas requires that vehicles pass a safety inspection before being sold. A current Vehicle Inspection Report should be provided to the buyer.
4. Bill of Sale
While not legally required, a bill of sale is highly recommended as it serves as proof of the transaction. It should include the vehicle's details, the sale price, and both the seller’s and buyer’s signatures.
5. Odometer Disclosure Statement (if applicable)
If the car is less than 10 years old, the seller is required to provide an Odometer Disclosure Statement to the buyer. This document ensures the buyer knows the accurate mileage of the vehicle at the time of sale.
6. Release of Liability (Form VTR-346)
After the sale, the seller must submit a 'Vehicle Transfer Notification' to the Texas DMV to release liability. This form protects you from any liability if the new owner incurs fines or accidents before officially transferring the title.
Vehicle Transfer Notification (VTR-346)
7. Sales Tax Payment (for Buyer)
In Texas, the buyer is responsible for paying sales tax based on the sale price of the vehicle when they register it in their name. Ensure the buyer is aware of this requirement.
