#1: What It Is
So, what exactly is a Texas bill of sale? Don’t worry, it’s a simple concept.
A bill of sale is a legal contract. More specifically, it’s a legal contract for the sale of goods, such as autos, motorcycles, boats, computers, dogs, cats, artwork, or other things. It normally is not used to sell real estate or businesses, or things that aren’t physical such as trademarks.
In short, it’s a legal contract to sell a good within the state of Texas.
#2: Selling a Good for $500? Or $100,000? You Need One
Texas wants to prevent fraud. The state therefore has a law requiring a ‘writing sufficient’ to show a legal contract for the sale of all goods for $500 or more.
That means if you’re selling a good, such as a car, for $500 or more, you need a written contract. Importantly, a bill of sale satisfies the law. You’ll therefore have access to Texas courts, if a problem arises with the sale.
#3: Need Legal Protection? Get a Good Bill of Sale
You’re well aware that used things, like cars, boats, and TVs, break. If you’re selling a good, there’s a chance it will break, too. If it does, the buyer will be unhappy and may sue you, claiming you sold a lemon.
A good bill of sale, however, can protect you. It can shift risks to the buyer. It can also help ensure safe payment.
#4: Free Bills of Sale are Bad
Dig a little, and you’ll find free or sample bills of sale on the Web.
Be careful. The vast majority of free bills of sale are bad. They’re outdated and written terribly. They provide no guidance on Texas law, and you may end up in a dispute with a buyer over a confusing term.
You’re selling your used vehicle or other good to make money. Don’t risk losing that money with a bad bill of sale.