Maryland is among the states that require residents to utilize bills of sale every time when purchasing or selling vehicles. A Maryland motor vehicle bill of sale (Form VR-181) plays an important role in registering and titling your car as well. In addition, this document can assist you in defending ownership rights in court and filling in tax statements.
Do You Need a Bill of Sale to Trade Vehicles in Maryland?
Yes, a vehicle bill of sale is required to sell, purchase, title, and register a vehicle in the state of Maryland. If you are purchasing a vehicle from a private party, such as an individual or privately owned company, a bill of sale is necessary. Although you may indicate the vehicle’s price directly on the title, it’s still advised to sign the bill to avoid legal disputes. A notarized Maryland motor vehicle bill of sale can also save you some money when it comes to paying the state’s tax. If a bill of sale isn’t available, the tax amount will be determined based on the clean retail value, which may significantly increase the payment.
Mind that you must utilize a state-authorized bill of sale form to ensure that the document will obtain legal value. A physical copy of the form can be received at a Motor Vehicle Administration office. You can also download a printable template in PDF format from our website for free. Consider using a complimentary form builder if you need to design a custom document.
How to Register a Vehicle in Maryland?
Maryland laws oblige sellers to undergo a safety inspection before selling their vehicles. If you are not provided with a safety certificate while purchasing a car, you shouldn’t continue with that deal. The seller is also responsible for recording their own and the buyer’s name on the vehicle’s Certificate of Title. Finally, the seller must provide an odometer disclosure statement. To register a vehicle, you should bring the following documents to a local MVA:
- Title. The current vehicle title (if available) must be provided.
- Bill of sale. If the title specifies the purchase price, this document won’t be necessary.
- Insurance. The vehicle must be insured to be legally driven on public roads of Maryland.
- Application for Certificate of Title. Form VR-005 must be completed and submitted to the MVA to transfer the title.
- Identification document. If you’re providing a driver’s license, it must be issued by the state of Maryland.
- Odometer reading. To register a vehicle, one must provide an odometer disclosure statement showing the current reading.
- Safety certificate. All vehicles obtaining Maryland registration must undergo a safety inspection.