Originally Posted by GOTTOYS
A written Bill of Sale on a titled vehicle is just about worthless. The Title Certificate is proof of absolute ownership. A written Bill of Sale will not let you transfer ownership and really is no proof of anything. Anybody could write it out so having it is meaningless..
A bill of sale will release you from liability after you have sold a vehicle and until the new owner gets is registered to them.
Some states don't issue titles, like kansas. You have a registration card (or something like that) that you can take and file for a title in another state, but would need a bill of sale most likely as well.
Some states are title holding states, like Texas. If you have a lien on a vehicle in texas the bank has the title. (Unless they changed this recently )
Here in Oklahoma we keep our titles and sign them over (notorized) to the new owner with a lien release from the bank when the check has cleared.
Op. I've bought several Texas vehicles and its pretty simple. If a person is purchasing the vehicle, have their bank wire the money to your lien bank. They will give you a release and mail you the title or if you sign a power of attorney for this transaction, you could have it mailed directly to the new owner. If you have the title its even easier. You can sign the title over to the new owner (Texas doesn't require the signature notorized ) and you can just have the lein release sent to the new owner. A bill of sale with a guaranteed of title and or lein release would be a good thing to do if i was in your situation.
.....or if you have the funds in a 401k or other investments, pay it off and reinvest it or pay the 401k loan back after the sale. That makes it a lot easier!