How To Sell a Car in Maryland

The sale of a motor vehicle in Maryland is governed by state statutes and rules administered by the Motor Vehicle Administration (MVA). Private parties engaged in vehicle transfers must comply with specific requirements for title assignment, safety inspection, bill of sale documentation, odometer disclosure, excise tax payment, and license plate removal to ensure the transaction is legally valid and ownership is properly transferred to the buyer.

What You Need To Know Before Selling a Car in Maryland

Title Law and Ownership Requirements

Following Maryland Transportation Article § 13-101.1, a certificate of title is required for most motor vehicles sold in the state. The owner whose name appears on the certificate of title possesses the right to transfer ownership to another person. The transfer of ownership is accomplished through the proper assignment of the title by the seller to the buyer.

Vehicles Exempt From Title Requirements

Certain vehicles are exempt from the requirement to obtain a certificate of title in Maryland. These include vehicles owned by federal, state, or local governments, farm tractors, and vehicles that are not required to be registered in the state.

For vehicles that do not require a certificate of title, proof of ownership by other means, such as a bill of sale or registration documents, may be used.

Satisfying an Existing Lien

If a security interest or lien is recorded on the certificate of title, the lien must be satisfied and released before the seller can transfer clear title to the buyer. The lienholder is responsible for providing a written notice of security interest filing or a lien release letter once the loan is paid in full. The seller must obtain this documentation from the lienholder and present it to the buyer at the time of the transaction.

If the vehicle is financed and a lien is shown on the title, the buyer will be unable to complete the title transfer and registration until the lien is satisfied. The seller should contact the lienholder in advance to arrange payment and obtain the release documentation.

Safety Inspection Requirement

Most used vehicles sold in Maryland must undergo a state safety inspection prior to sale or transfer of ownership. Under COMAR 11.14.01.14, an inspection is required when a used vehicle is sold or when ownership is transferred. A Maryland Safety Inspection Certificate is issued by a licensed inspection station and is valid for 90 days from the date of inspection. The inspection must be completed before the vehicle can be registered in the buyer's name, so the seller is responsible for ensuring the vehicle is inspected prior to sale.

Documents Required To Sell a Car in Maryland

Certificate of Title

The existing certificate of title is the primary document establishing ownership. The seller must complete the "Assignment of Ownership" section on the back of the title by writing in the buyer's full legal name and address, the date of sale, the odometer reading, and the purchase price if space is provided. The seller must sign the title exactly as the name appears on the front of the certificate.

If the certificate of title has been lost, damaged, or destroyed, the seller may apply for a duplicate title using the Application for Duplicate Certificate of Title (Form VR-018) before transferring ownership to the buyer.

Bill of Sale

A bill of sale is required for private vehicle sales in Maryland, or strongly recommended. The Bill of Sale (Form VR-181) must contain the full names and addresses of both the seller and buyer, the date of sale, a complete vehicle description including the vehicle identification number (VIN), make, model, year, and body style, the purchase price, the odometer reading, and must be signed by both parties.

As of April 2026, a notarized bill of sale is required for vehicles less than 7 years old. However, effective October 1, 2026, HB 251 will repeal this requirement. Sellers should verify current requirements with the MVA when completing their transaction.

Notice of Security Interest Filing

If the vehicle is financed or has a lien recorded on the title, the seller must obtain and provide the buyer with a Notice of Security Interest Filing or a written letter from the lienholder confirming that the lien has been satisfied and released. This document must be provided at the time of sale and presented by the buyer when applying for the new title.

Odometer Disclosure

The seller must record the actual odometer reading on the certificate of title in the "Assignment of Ownership" section at the time of transfer. The odometer reading must be stated in whole miles without tenths. If the odometer reading exceeds the odometer's mechanical limits or is not the actual mileage, the seller must note this on the title or bill of sale form.

How To Transfer a Car Title in Maryland

Step 1: Review the Title Before the Sale

The seller should examine the certificate of title to verify that the owner's name is correct and matches the seller's legal identification, that the title has not been altered or corrected with erasures or markings, and that any liens are clearly identified. If the title is damaged, illegible, or missing, the seller should obtain a duplicate title from the Motor Vehicle Administration before proceeding with the sale.

Step 2: Obtain a Safety Inspection

The seller is responsible for having the vehicle inspected by a licensed Maryland inspection station before the sale is completed. The inspection verifies that the vehicle meets minimum safety standards and that the vehicle identification number matches the title and registration documents. A Maryland Safety Inspection Certificate is valid for 90 days and must be presented by the buyer when registering the vehicle.

Step 3: Satisfy Any Outstanding Liens

If a lien is recorded on the certificate of title, the seller must contact the lienholder to arrange satisfaction of the loan. The lienholder will provide a written Notice of Security Interest Filing or release letter confirming the lien has been satisfied. The seller should obtain this documentation and keep it with the title to present to the buyer at the time of sale.

Step 4: Complete the Title Assignment

The seller assigns the certificate of title by completing the "Assignment of Ownership" section on the back of the title. The seller prints the buyer's full legal name and address, enters the date of sale, records the odometer reading in whole miles only, and enters the purchase price if a space is provided on the title. The seller signs the title exactly as the name appears on the front.

Step 5: Prepare a Notarized Bill of Sale

For vehicles less than seven model years old, the seller must prepare a Bill of Sale (Form VR-181) that includes all required information and have it notarized. Both the seller and buyer must sign the bill of sale in the presence of a notary public. The notary will affix the notarial seal and sign the form. For vehicles seven years old or older, a notarized bill of sale may not be required if the purchase price is properly recorded on the title.

Step 6: Remove License Plates

The seller must remove the vehicle's license plates before transferring ownership to the buyer. Unless the plates are being transferred to another vehicle owned by the same individual, the seller should return the plates to the Motor Vehicle Administration and retain the receipt or retain the plates for future use.

Step 7: Deliver Documents to the Buyer

At the time of sale, the seller delivers the following documents to the buyer:

• The original certificate of title, properly completed and signed in the "Assignment of Ownership" section
• A completed and notarized Bill of Sale (Form VR-181)
• A Notice of Security Interest Filing or lienholder's release letter, if applicable
• The original Maryland Safety Inspection Certificate dated within 90 days of the sale

The seller should retain copies of all documents for personal records.

Step 8: Buyer Applies for Title and Registration

The buyer must apply for a new certificate of title and vehicle registration within 30 days of the purchase date at a Maryland Motor Vehicle Administration office. The buyer submits the Application for Certificate of Title and Registration (Form VR-005), the signed and assigned certificate of title from the seller, the notarized bill of sale, the safety inspection certificate, proof of motor vehicle liability insurance, and payment of all applicable fees and taxes.

Title Transfer Fee Schedule in Maryland

Title-related fees in Maryland are as follows:

Passenger vehicle registration fees vary by vehicle weight and class. Registration fees apply to one-, two-, or three-year periods.

Sales Tax on Private Vehicle Sales

Maryland assesses an excise tax on motor vehicle purchases. Under Maryland Transportation Article § 13-402, for vehicles less than seven model years old purchased from a non-dealer source and accompanied by a notarized bill of sale, the excise tax is 6.5% of the purchase price or $640, whichever is greater. A minimum excise tax of $38.40 applies.

For vehicles seven years old or older purchased from a private party, the excise tax is 6.5% of the purchase price if the price exceeds $640, or the minimum excise tax of $38.40 if the price is $640 or less. The buyer pays the excise tax at the time of registration with the Motor Vehicle Administration.

What To Do After Selling Your Car in Maryland

Return License Plates

The seller must remove the vehicle's license plates at the time of sale. Unless the plates are being transferred to another vehicle in the same name and with the same classification, they must be returned to the Motor Vehicle Administration. The seller should retain the receipt as proof of the plate return before canceling the vehicle's insurance coverage.

Cancel Insurance Coverage

Once the title has been transferred and the license plates have been returned to the Motor Vehicle Administration, the seller should contact the insurance provider to cancel the motor vehicle coverage. Maryland law imposes strict uninsured motorist penalties that begin at $150 for the first 30 days a vehicle is not insured. The seller should not cancel insurance until the plates have been removed and returned.

Retain Documentation

The seller should keep copies of the bill of sale, the safety inspection certificate, the title assignment, and any lien release documentation for personal records. These documents may be needed to prove the sale in the event of future liability disputes or related legal matters.

Contact Information

Maryland Motor Vehicle Administration
6601 Ritchie Highway, N.E., Glen Burnie, Maryland 21062
Phone: (410) 768-7000
Official Website: Motor Vehicle Administration