When it comes to buying or selling a car, one of the most important steps is transferring the vehicle title. Without this process, ownership of the car doesn’t legally change hands. If you’re in Texas, the rules for vehicle title transfer are quite clear, but they can feel overwhelming if you’re not familiar with them. In this guide, we’ll take you through every step, whether you’re the buyer or the seller, so that the transaction goes smoothly.
At Mi Amigo Motors, we help drivers every day with car buying and paperwork questions, and we know how confusing this process can seem at first. But once you understand the flow, transferring a vehicle title in Texas is pretty easy.
Why the Vehicle Title Transfer Matters
Before we get into the steps, let’s talk about why the title transfer is such a big deal.
A vehicle title is the legal document that proves ownership. When you’re buying or selling a car, the title transfer officially moves ownership from the seller to the buyer. Without the proper transfer, the state still considers the seller as the owner, which can cause some serious problems like unpaid tolls, parking tickets, or even accidents being linked back to the wrong person.
As per the latest rule of the Texas Department of Motor Vehicles, vehicles are required to be titled in the buyer's name within 30 days from the date of sale.
For buyers, a proper title transfer ensures that you fully own your car and can register it in your name, get Texas license plates, or even resell it later without legal issues.
Documents You’ll Need for a Title Transfer in Texas
The Texas Department of Motor Vehicles (TxDMV) requires specific documents from both the seller and the buyer. Here’s what you should have ready:
If You’re the Seller:
The original vehicle title (no photocopies allowed)
Odometer reading (if the car is under 10 years old)
Bill of sale (not always required, but strongly recommended)
Valid photo ID
If You’re the Buyer:
Signed vehicle title from the seller
Application for Texas title (Form 130-U)
Proof of car insurance in Texas
Valid photo ID
Proof of inspection (if the car was brought in from out of state)
Having these ready in advance saves time and prevents repeat trips to the county tax office.
Step-by-Step: How to Transfer a Vehicle Title in Texas
Here’s the part you’ve been waiting for, the actual process.
Step 1: Verify the Title and Vehicle Information
Before exchanging money or signing anything, both parties should carefully look over the title. Make sure the names on the title match the seller’s ID. Double-check that the VIN (Vehicle Identification Number) on the car matches what’s on the title.
This prevents fraud and ensures that no one sells you a car they don’t actually own.
Step 2: Complete the Title
Once both parties are ready, the seller must sign the back of the title and include the buyer’s information. Here’s what gets filled out:
It’s important to write clearly with black or blue ink. Any errors can delay the process at the DMV.
Step 3: Provide a Bill of Sale (Optional but Recommended)
While Texas doesn’t legally require a bill of sale, it’s a smart move for both buyer and seller. It acts as a receipt, showing the purchase date, amount paid, and vehicle details. This document can protect you if there are any disputes later on.
Step 4: Submit the Transfer at the County Tax Office
Both the buyer and the seller are responsible for submitting the paperwork, but usually the buyer handles this step.
You’ll need to go to your local County Tax Assessor-Collector’s office within 30 days of the sale. Bring the completed and signed title, a filled-out Form 130-U, and proof of insurance.
There will also be fees, which vary depending on whether the car is new, used, or brought in from another state. Title application fees in Texas are generally around $33 to $54, plus registration fees and any local county fees.
Step 5: Pay the Sales Tax
Texas charges a 6.25% sales tax on the purchase price of the vehicle. The buyer pays this tax at the time of the title transfer. If the purchase price is suspiciously low compared to the car’s market value, the state may use its own valuation to determine the taxable amount.
Step 6: Get New Registration and License Plates (If Needed)
If the buyer doesn’t already have plates to transfer from another vehicle, this is when you’ll get new plates. You’ll also receive your registration sticker, which must be displayed on the windshield.
Step 7: Receive the Updated Title in the Mail
Once everything is processed, the TxDMV will mail the buyer a new title in their name. This can take a couple of weeks, depending on processing times.
For Sellers: Don’t Forget the Vehicle Transfer Notification
In addition to signing over the title, the seller should file a Vehicle Transfer Notification with the TxDMV. This can be done online and lets the state know you no longer own the vehicle.
Why is this so important? Because it protects you. If the buyer doesn’t immediately transfer the title and racks up parking tickets or toll violations, the state will already know you’re not the owner anymore.
Common Mistakes to Avoid in Texas Title Transfers
Even though the process is simple, small mistakes can slow everything down. Here are some of the most common errors people make:
Leaving blanks in the title. Always fill in the buyer’s and seller’s names, date, and odometer reading.
Incorrect odometer entry. Writing the wrong mileage can trigger red flags and delay the transfer.
Not transferring within 30 days. This can result in late fees.
Not filing a transfer notification. This leaves the seller liable for issues after the sale.
Paying with the wrong form of payment. Some tax offices only accept certain payment methods for fees.
Tips for Buyers
Always verify the title is “clean” and not marked as salvage, rebuilt, or otherwise branded (unless you’re knowingly buying such a car).
Make sure there are no liens listed on the title. If there is a lienholder, the seller must provide a lien release.
Keep copies of all documents, including the bill of sale and signed title, before leaving the seller.
Tips for Sellers
Remove your license plates before completing the sale. In Texas, plates stay with the seller, not the car.
Complete and file the Vehicle Transfer Notification as soon as you sell the car.
Only accept secure payment methods, especially for private sales.
Buying or Selling Through a Dealership vs. Private Sale
When working with a dealership, much of this paperwork is handled for you. Dealerships are required by law to process the title transfer and submit fees and taxes on behalf of the buyer.
If you’re buying from used car dealers like those at Mi Amigo Motors, you’ll have peace of mind knowing the title transfer is managed correctly. You won’t have to worry about missing forms, unpaid fees, or filing deadlines.
For those who prefer private sales, the steps we covered above are crucial to avoid future issues.
What About Buy Here Pay Here Car Lots?
If you’re considering financing a car through a buy here pay here lot, the process is slightly different. In this case, the dealership usually holds the title until you’ve paid off the loan. The title will list the dealer as the lienholder until the car is fully paid for. Once your loan is satisfied, the lien is released, and you’ll get the clear title in your name.
Make Your Process Easier with Mi Amigo
Transferring a vehicle title in Texas may seem like a lot of steps, but once you break it down, it’s a simple process. Make sure all paperwork is filled out clearly, submit it within 30 days, and don’t forget the sales tax. Buyers get the peace of mind of knowing the car is legally theirs, and sellers protect themselves from future liability.
If all of this sounds like too much hassle, remember that working with trustworthy dealers makes the process much easier. At Mi Amigo Motors, we don’t just sell cars; we help our customers handle the paperwork so they can hit the road stress-free. Whether you’re exploring options from reliable used car dealers or considering buy here pay here financing, our team makes the process smooth and transparent.
