Free Texas As-Is Bill of Sale

Texas As-Is Bill of Sale — What You Need to Know

Sales Tax Details

Texas imposes a 6.25% Motor Vehicle Sales and Use Tax assessed on the higher of the actual sale price OR the Standard Presumptive Value (SPV) published by TxDMV. Selling a vehicle as-is below market value does NOT reduce the tax if the SPV is higher — the buyer pays 6.25% of SPV regardless.

Inspection Requirements

Texas does not require a safety inspection as a condition of a private vehicle sale. However, the buyer must obtain a passing safety inspection before registering the vehicle. Emissions testing (OBD-II scan and tailpipe test) is required for registration in 17 designated counties including Harris, Dallas, Tarrant, Bexar, Travis, and El Paso.

Texas As-Is Sale — Step-by-Step Checklist

1. Complete Form 130-U (Application for Texas Title and/or Registration) and list the ACTUAL sale price — TxDMV cross-checks this against SPV and can audit low-value declarations.
2. Sign the Texas certificate of title on the reverse, completing the odometer reading, sale price, buyer name, and seller signature sections.
3. Draft an as-is bill of sale with "AS IS — NO WARRANTIES" in conspicuous text (bold, separate line, or larger font) per TX Bus. & Com. Code § 2.316.
4. If the vehicle has a salvage, rebuilt, or non-repairable title, disclose this in writing on the bill of sale — Texas Transportation Code requires salvage title disclosure.
5. Record the full VIN, year, make, model, mileage, sale price, and date on both the Form 130-U and the bill of sale.
6. Both parties sign the bill of sale; seller retains a copy; buyer takes the title and Form 130-U to the county tax office.
7. Buyer submits Form 130-U, signed title, and 6.25% SPV-based tax to the county tax assessor-collector within 30 days.
8. Seller submits a Vehicle Transfer Notification to TxDMV online within 30 days to release liability.

Common Pitfalls

• SPV tax surprise: Texas taxes the higher of sale price or Standard Presumptive Value — if you sell a vehicle worth $12,000 for $5,000 because it needs engine work, the buyer still owes 6.25% of ~$12,000 in SPV tax. Buyers must understand this before agreeing to the sale price.
• Salvage title non-disclosure: Texas law requires explicit disclosure of a salvage, rebuilt, or non-repairable title. Failing to disclose is a misrepresentation that voids the as-is protection and can expose the seller to DTPA claims even as a private individual.
• AS IS conspicuousness failure: printing "as is" in standard body text within a dense contract does not satisfy TX Bus. & Com. Code § 2.316 — the clause must stand out visually, either in bold, all-caps, or set apart from surrounding text.
• DTPA multiple-vehicle trap: a private individual who sells multiple vehicles per year can be treated as a person "in trade" under the DTPA, stripping the casual-seller exception. Courts have held that as few as 3–4 sales per year may be enough to trigger dealer-level obligations.
• Vehicle Transfer Notification omission: if the buyer does not transfer the title promptly and accumulates traffic violations or toll charges, the seller remains on record as the owner. Filing the online notification at txdmv.gov protects sellers from post-sale liability.

Pro Tip

Texas's SPV-based tax system is the single biggest misunderstanding in private vehicle sales — sellers should proactively explain to buyers that the 6.25% tax may be higher than expected, and both parties should understand the SPV before agreeing on a price. Pair that with a conspicuous AS IS clause and a Vehicle Transfer Notification, and the transaction is well-protected.

Texas As-Is Bill of Sale — FAQs