Paid for the Car… But Is It Legally Yours in Texas?
One of the most common issues I see as a Texas notary involves vehicle sales that stop dead in their tracks — not because of fraud or bad intentions, but because of misunderstood ownership rules.
Here’s the hard truth many sellers don’t realize until it’s too late:
If your name is not on the vehicle title, Texas does not consider you the owner — even if you paid for the car.
Payment Does Not Equal Ownership in Texas
In Texas, vehicle ownership is determined by the title on record with the Texas Department of Motor Vehicles. The DMV does not evaluate who paid for the vehicle, who has possession, or who holds a handwritten agreement.
They look at one thing only:
Whose name is printed on the title.
If your name is not listed, you cannot legally sell the vehicle.
The Common Scenario I See
Many clients come in ready to sell a vehicle they recently purchased, only to discover:
The title is still in the previous owner’s name
The title transfer was never completed
They assumed payment finalized ownership
Unfortunately, at that point, the transaction cannot proceed.
What Has to Happen First
Before a vehicle can be sold in Texas:
The buyer must transfer the title into their own name
The Texas DMV must process and issue a new title
Only then can that person legally sell the vehicle
This process typically takes around 3 to 4 weeks, assuming there are no errors or missing documents.
What About a Bill of Sale?
Texas does not legally require a bill of sale for every vehicle transaction. However, in real-world practice:
DMV offices may interpret requirements differently
Individual agents may request supporting documentation
A bill of sale helps establish a clear paper trail
Recommendation: Always have a bill of sale.
It’s not mandatory — but it’s smart.
Final Takeaway
If you’re planning to sell a vehicle in Texas:
Make sure your name is on the title before listing or negotiating
Do not assume payment alone gives you resale rights
Allow time for title processing
Protect yourself with proper documentation
Skipping these steps doesn’t save time — it creates delays, failed sales, and unnecessary stress.
If you’re unsure about your title status or next steps, ask before proceeding. It’s always easier to fix the paperwork first than explain a failed transaction later.