Typically when a Trailer transaction takes place, the seller signs over the title to the buyer. This acknowledges the transfer of ownership and acts as a legal document for ownership going forward. Once the title is transferred, the new owner can register the trailer with their state for road use. In addition to the signed title, we suggest the buyer also secure a valid Texas Trailer Bill of Sale document which stipulates the details including the condition and description of the Trailer, as well as any warranties included. This will help both the buyer and seller avoid legal issues down the road with claims against ownership or injuries/damage resulting from the use of the Trailer. It may also be required by your state.
What if the Title isn’t Available?
It is very common when purchasing a Trailer from a private seller that the title is not available. That is usually caused by one of two scenarios. Depending on the state, the original purchase of the Trailer may not have had a title but would have come with a Certificate of Origin (CO). You will need this to apply for registration if a title is not available. If the owner has the title but never applies for registration, the title is often misplaced or lost. The owner can apply for a replacement title with the state, but this is unfortunately very uncommon.
If a title does not exist, it is a good practice to run a title search with the NICB to verify the Trailer is not reported as stolen. Many people opt to purchase a Trailer with a bill of sale in leau of the title, relying on their trust in the seller that the trailer did belong to them. So long as the Trailer did legally belong to them, there are usually no issues in the future however you nor future owners will be unable to register the Trailer which can limit the resale value.
If the Trailer was purchased in a state that did not require the trailer be titled, and only a Certificate of Origin was available, then the trailer may not have been registered with the state. In this scenario, there will be no way to document ownership of the car other than a bill of sale and the Certificate of Origin. The original C.O. will be the only way you can register the trailer in the future.
What Makes a Bill of Sale?
When deciding on which Trailer Bill of Sale it is critical to look for certain criteria in the document itself, to be sure it is valid and binding. This includes:
Clear Buyer and Seller Information – If contested, a court will generally look to the title and the bill of sale for determining ownership. If the seller or buyers information is not clear, a judge may have difficultly interpreting who owns the Trailer. It is also crucial when registering the trailer. Registering the trailer will require both the title be signed and also a bill of sale documenting the purchase agreement.
The Offer – There must be a clear offer made by the seller which the buyer is accepting. Ambiguity will only make it more difficult when determining whether a contract is valid. You want a Trailer Bill of Sale that clearly spells out the year, make, model, mileage, condition and description of the trailer.
An Exchange of Funds – In exchange for the Trailer, money is typically given to the seller. An effective bill of sale will include a clear itemization of the sale price using both numeric and written dollar amounts.
Competent Parties – Both parties entering in the agreement must be of sound mind and body. Typically this prevents child or persons with mental handicaps from entering in a contract that they may not understand. It can also be sometimes extended (based on your jurisdiction) to persons under the influence of alcohol or drugs. Persons under duress may also not be consider competent.
Can’t Break The Law – Generally, a valid contract can’t break the law. An agreement to split the funds from a bank robbery would be void as it violates public policy.
Texas Trailer Bill of Sale Template
Below is our generic Trailer Bill of Sale Template that can be used for any county in Texas.
Common Asked Questions/FAQ
What if the seller doesn’t have the title?
In the event that the original title is not available, you can still purchase the Trailer with a bill of sale and the Certificate of Origin. If there was a title but it was lost by the seller, they can apply for a replacement title with the Registration office. If no title existed, than you will need the CO. With the title or CO, as well as a Bill of Sale, the new owner can register the trailer in their name.
Can we e-sign the bill of sale?
It depends on your state. We suggest you check your local state laws regarding the validity of electronic signatures.
What to do with the bill of sale?
Whether you are the buyer or seller it is always a good idea to save a copy for your records. If you have a scanner, make a digital copy of the document. If not, take a picture of the document and email it to yourself.
Does the bill of sale need to be notarized?
It depends on your state. We suggest you check your local state laws regarding notarizing signatures on a contract. As a general rule of thumb, it doesn’t hurt to get the bill of sale notarized even if it doesn’t need to be by law.