Best practice: meet at the county tax office
When possible, buyer and seller should complete the transaction at the county tax assessor-collector. Staff can identify obvious title problems before funds and possession are fully exchanged, and the seller can confirm that the buyer filed the title application.
Private-sale sequence
- Verify identities, VIN, title ownership, brands, and liens.
- Complete an independent inspection and history check.
- Agree in writing on price, payment, included property, and delivery.
- Verify payment before transferring possession.
- Complete the original title and Form 130-U without blanks or alterations.
- Exchange lien releases and supporting documents.
- Record the exact date and time possession changes.
- Buyer applies for title within 30 days.
- Seller files the Vehicle Transfer Notification within 30 days.
Taxes and standard presumptive value
The buyer generally pays 6.25% motor-vehicle sales tax. For many private-party used-vehicle transactions, the taxable amount is the greater of the reported purchase price or 80% of standard presumptive value. Qualifying gifts, dealer transactions, appraisals, and other exceptions follow different rules.
Plates and five-day transit permit
The seller may remove the plates. A qualifying buyer can obtain one Vehicle Transit Permit valid for five calendar days to move the vehicle under the permit rules. A transit permit does not provide insurance or extend the title-transfer deadline.
Fraud and safety precautions
Buyer
- Never accept an open title.
- Match seller ID to the title.
- Check VIN and lien status.
- Do not report a false price.
Seller
- Verify cleared funds.
- Keep copies and buyer details.
- Remove toll tags and personal data.
- File the transfer notification.
Frequently asked questions
What forms are used in a Texas private vehicle sale?
The core documents are the properly assigned original title and Form 130-U. A lien release, power of attorney, gift affidavit, estate document, or other supporting record may also be required.
Who pays the tax in a private sale?
The buyer pays Texas motor-vehicle sales tax when applying for title. The rate is generally 6.25%, subject to standard presumptive value and other rules.
Does a bill of sale replace the title?
No. A bill of sale is useful evidence, but it does not replace the properly assigned title and required title application.
What if the seller has no title?
Do not complete the purchase based only on a promise. The seller should first obtain a certified copy or resolve the ownership problem. Some buyers may qualify for a bonded-title process, but approval is not guaranteed.