Texas auto repair authorization: what the law actually requires
Updated
We found no general auto repair act in Texas: no statewide written-estimate threshold, overrun limit, replaced-parts rule or body shop registration. What shapes a Texas repair authorization is the Deceptive Trade Practices Act (Bus. & Com. Code § 17.46), the worker's lien in Property Code § 70.001, which lets you repossess a car released on a bad payment only if the customer signed a separate repossession notice or a conspicuous one with its own signature line, and the lien-sale rules, which require a signed copy of the work order in the notice to any lienholder on the title.
Does Texas have an auto repair law?
Not a general one that we could find. Many states have a motor vehicle repair act that tells shops when a written estimate is required, how far a bill can go over it, and whether replaced parts must be offered back. Florida, California and New York are examples (see our guide to repair authorization forms for how those differ). When we researched Texas, we found no statute or rule that sets up that kind of estimate and authorization regime, and no statewide registration for body shops.
Treat that as a research finding, not a guarantee: "we found no law" is a search result. We checked the sections below against the official Texas statutes in October 2026, but laws change, so check the current text before relying on them.
The practical consequence: in Texas your signed authorization does most of the work that a repair act does elsewhere. If you have no contract amount, the worker's lien secures only "the reasonable and usual compensation" (Prop. Code § 70.001(a)). A signed form that states the agreed amount or how it will be priced defines what you can hold the car for.
Texas DTPA: the repair-specific deceptive acts
The Deceptive Trade Practices-Consumer Protection Act lists false, misleading or deceptive acts. Three of them in Bus. & Com. Code § 17.46(b) are about repairs:
- (13) "knowingly making false or misleading statements of fact concerning the need for parts, replacement, or repair service."
- (15) basing a repair charge on a guaranty or warranty without stating separately the charge for the work and the charge for the warranty.
- (22) "representing that work or services have been performed on, or parts replaced in, goods when the work or services were not performed or the parts replaced."
None of these tells you what your form must say, but they tell you what your records should be able to show: why a part was needed (teardown photos, supplement notes), which parts were actually replaced, and any warranty charge as its own line.
The worker's lien and the repossession notice (Prop. Code § 70.001)
Under § 70.001, a worker who repairs a vehicle may keep it until the contract amount is paid. The lien is released when you receive good payment or when you give up possession (§ 70.001(b-1)). So in the ordinary case, once the car leaves your lot, the possessory lien goes with it.
There is one exception, and it is narrow. If you release the vehicle for a check, money order or card payment that is later stopped or dishonored, the lien continues and you may take the vehicle back, following the repossession rules of Bus. & Com. Code § 9.609 (§ 70.001(b)), unless it is now held by a bona fide purchaser who bought it after the stop-payment order. You can do that only if the person obligated under the repair contract signed a notice saying the vehicle may be subject to repossession (§ 70.001(c)). The notice must be either:
- a separate document, or
- printed on the repair contract, credit agreement or other document in boldfaced, capitalized, underlined or otherwise conspicuous type, with a separate signature line.
The statute doesn't prescribe wording. One version that tracks it: "Notice: the vehicle being repaired may be subject to repossession under Section 70.001, Texas Property Code, if payment for repairs is made by a check, money order or credit card transaction on which payment is stopped or that is dishonored." Print it in conspicuous type and give it its own signature.
Two cautions. First, a single signature at the bottom of the whole authorization may not satisfy § 70.001(c); our research flags this as a question for your attorney. Second, the remedy covers stopped or dishonored payments, not general nonpayment, so wording that promises to repossess for any unpaid balance claims more than the statute gives. A repossessed vehicle must go back to the repair location or to a licensed vehicle storage facility and stay there until it is lawfully returned or disposed of (§ 70.001(g)).
Selling a vehicle under a Texas repair lien (§ 70.006)
If a customer never pays and never picks up, § 70.006 sets the steps before a sale. This is where the paperwork from check-in day matters.
| Step | What the statute says |
|---|---|
| Notice | Written notice to the owner and each lienholder of record, generally by certified mail, return receipt requested, stating the charges and requesting payment (§ 70.006(a), (b)). |
| County filing | A possessory lienholder on a motor vehicle, other than a franchised dealer, files a copy with the county tax assessor-collector where the repairs were made, with a $25 fee, within 30 days after the charges accrue for vehicles under 16,000 lb GVWR (§ 70.006(a), (a-1)). |
| What goes to title lienholders | The repair address, your legal name, your taxpayer or employer ID number, a signed copy of the work order authorizing the repairs, and any proposed sale date (§ 70.006(b-1)). |
| If you skip it | A lien recorded on the title becomes superior to your possessory lien (§ 70.006(b-2)). |
| Redemption | The owner or a lienholder can pay and take the vehicle before the 31st day after the filing (§ 70.006(e)). |
| Sale | After that, a public sale; proceeds go to the charges and any excess to whoever is entitled to it (§ 70.006(f)). |
| Inspection | On request, the owner and lienholders may inspect the vehicle to verify the repairs before the sale (§ 70.006(g)). |
In short: no signed work order, no clean path past a bank's title lien. Keep the signed authorization with the job, and make sure it identifies the vehicle by VIN.
Storage charges and the garageman's lien (§ 70.003)
A garageman with whom a vehicle is left for care has a lien for the care charges, "including reasonable charges for towing" the vehicle to the garage "and excluding charges for repairs" (§ 70.003(c)). Whether storage on a car left with you for repair falls under this lien is an open question in our research; we found no case or rule that settles it.
We also found no Texas statute that makes a shop disclose storage charges in advance for a car the customer left voluntarily. That doesn't mean you shouldn't: if your daily rate, any administration fee, and the day storage starts are on the signed authorization, they are part of the agreement rather than a surprise at pickup.
Two rules you may see quoted that usually don't fit an ordinary drop-off:
- § 70.004 (5-day certified-mail notice, storage fees for only 5 days before the notice, a fine of $200 to $1,000 for charging storage outside that window) applies to a § 70.003 lienholder that obtained possession under a state law or city ordinance (§ 70.004).
- Occupations Code ch. 2303 licenses vehicle storage facilities (a facility that stores or parks at least 10 vehicles a year), but it "does not apply to a vehicle stored or parked at a vehicle storage facility with the consent of the owner" (§ 2303.003; § 2303.002). If you store nonconsensually towed vehicles, it may apply to you. We did not check whether TDLR rules add duties for a shop that stores only with the owner's consent.
Texas insurance rules bind the insurer, not the shop
Texas has strong choice-of-shop and parts rules, but they are written for insurers (Ins. Code § 1952.301 and following):
- An insurer may not limit coverage by specifying the brand, type, age, vendor or condition of parts, or by limiting the insured's choice of repair shop, except as commissioner rules allow (§ 1952.301).
- An insurer or adjuster may not take referral fees, tell or imply that the customer must use a specific or preferred-list shop for the repair to be covered, or require unreasonable travel (§ 1952.302).
- An insurer may not stop you from telling the customer the description, manufacturer or source of the parts used and the amounts charged to the insurer for parts and labor (§ 1952.304). This one protects you.
- The insurer must give the claimant notice of these rights when the vehicle is presented for a claim (§ 1952.305); 28 TAC § 5.501 sets how. Its verbal notice opens: "By law, you have the right to select where your motor vehicle is repaired and the parts used for repairs."
You don't have to print the insurer's notice on your form. Mentioning the customer's right to choose is a business choice, not a requirement we found.
Are electronic signatures valid in Texas?
Yes, generally. Texas adopted the Uniform Electronic Transactions Act as Bus. & Com. Code ch. 322. "If a law requires a signature, an electronic signature satisfies the law" (§ 322.007(d)), and the federal ESIGN Act says the same for transactions in interstate commerce (15 U.S.C. § 7001(a)). Two details shape how you collect it:
- The chapter "applies only to transactions between parties each of which has agreed to conduct transactions by electronic means" (§ 322.005(b)). Record that agreement: a short e-sign consent the customer accepts before signing, with the option to sign on paper.
- A signature is attributable to a person if it was their act, which "may be shown in any manner," including the efficacy of a security procedure (§ 322.009(a)). That is why the time, IP address, device and exact text signed are worth keeping.
What to put on a Texas repair authorization
- Your legal business name and the repair location's address (both go in a § 70.006 lien notice).
- The customer, and whether they are the owner or the owner's agent.
- The vehicle: year, make, model, VIN, plate and odometer.
- The work authorized and the agreed amount or pricing basis, plus how supplements will be approved.
- Storage: daily rate, any other fees, and when charges start.
- Who pays when insurance is involved and what happens if the insurer pays less.
- The § 70.001(c) repossession notice, conspicuous, with its own signature.
- An e-sign consent, if you sign electronically, with a paper option.
- A copy for the customer, and a signed copy kept with the job.
How IntakeBay's Texas template is built
IntakeBay started in Houston, built with Santa Ana Body Shop, which has been fixing cars since 1979. Our Texas starter template gives the repossession notice conspicuous type and its own signature line, separate from the main signature. Every published version is numbered and SHA-256 fingerprinted, and the signed PDF is saved with the time, IP address and device. The template is a starting point, not finished legal wording: fill in your legal name and fees, edit any clause, and have your attorney review all of the clause wording before you publish, especially the repossession clause, which should cover only stopped or dishonored payments as explained above. More on how IntakeBay works.
This is general information, not legal advice. Have your attorney review your forms.
Questions
Can a Texas body shop charge more than the estimate?
We found no Texas statute that caps how far a final bill can go over an estimate. Your signed agreement sets the terms, so state how supplements are approved and keep a record of each approval. Knowingly false or misleading statements about the need for parts or repairs are still deceptive under the DTPA.
Can I keep a customer's car until the repair bill is paid in Texas?
Generally yes. Property Code section 70.001 lets the worker keep the vehicle until the contract amount, or reasonable and usual compensation if none was agreed, is paid. The lien ends when you are paid or when you release the car, except for the bad-payment case covered by the signed repossession notice.
Can the customer sign the Texas repossession notice electronically?
Texas UETA says an electronic signature satisfies a law that requires a signature, so an e-signature can work. The notice still needs conspicuous type and its own signature, apart from the signature on the rest of the authorization.
Can an insurance company tell my customer to take the car somewhere else?
Texas Insurance Code section 1952.302 says an insurer or adjuster may not state or suggest that its policyholder must use a specific or preferred-list shop for the repair to be covered, and section 1952.301 bars an insurer from requiring a third-party claimant to use a particular shop. The customer chooses the shop, though, as the insurer's required notice puts it, an insurer is not required to pay more than a reasonable amount for the repairs and parts.
Do I need a state license to run a body shop in Texas?
We found no statewide registration or license for body shops. A vehicle storage facility license under Occupations Code chapter 2303 can apply if you store nonconsensually towed vehicles. Check local permits and your city's rules separately.
Sources
- Tex. Prop. Code § 70.001, Worker's lien (mirror of the Texas Statutes site), texas.public.law (mirror) (accessed )
- Tex. Prop. Code § 70.003, Garageman's lien, texas.public.law (mirror) (accessed )
- Tex. Prop. Code § 70.004, Possession of motor vehicle: notice and storage fees, texas.public.law (mirror) (accessed )
- Tex. Prop. Code § 70.006, Sale or disposal of motor vehicle, texas.public.law (mirror) (accessed )
- Tex. Bus. & Com. Code § 17.46, Deceptive trade practices, texas.public.law (mirror) (accessed )
- Tex. Occ. Code § 2303.002, Definitions (vehicle storage facility), texas.public.law (mirror) (accessed )
- Tex. Occ. Code § 2303.003, Exemptions, texas.public.law (mirror) (accessed )
- Tex. Ins. Code § 1952.301, Policy coverage: parts and choice of repair facility, texas.public.law (mirror) (accessed )
- Tex. Ins. Code § 1952.302, Prohibited acts, texas.public.law (mirror) (accessed )
- Tex. Ins. Code § 1952.304, Information about parts, texas.public.law (mirror) (accessed )
- Tex. Ins. Code § 1952.305, Notice of rights regarding repair of motor vehicle, texas.public.law (mirror) (accessed )
- 28 Tex. Admin. Code § 5.501, Notice requirements to claimants regarding motor vehicle repairs, Cornell Legal Information Institute (mirror) (accessed )
- Tex. Bus. & Com. Code § 322.005, Use of electronic records and signatures; variation by agreement, texas.public.law (mirror) (accessed )
- Tex. Bus. & Com. Code § 322.007, Legal recognition of electronic records and signatures, texas.public.law (mirror) (accessed )
- Tex. Bus. & Com. Code § 322.009, Attribution of electronic record and signature, texas.public.law (mirror) (accessed )
- 15 U.S.C. § 7001, General rule of validity (ESIGN Act), Cornell Legal Information Institute (mirror) (accessed )