How to Transfer Ownership of a Car in Maryland

All vehicles must be titled in Maryland. However, when a car changes hands, ownership must also change hands. It also needs to change names - it needs to be transferred from the name of the previous owner to the name of the new owner. This happens when buying or selling a car, as well as when inheriting or donating. However, there are a few important things you should know about transferring car ownership in Maryland.

Buyer information

It is extremely important for buyers to follow certain steps in the transfer of ownership process. These include the following:

• On the back of the title, you and the seller must complete the "Transfer of Ownership" fields.
• The odometer reading must be recorded on the back of the title. If there is insufficient space, the Odometer Disclosure Statement must be used.
• You need a bill of sale from the seller. In addition, it will need to be notarized under certain conditions. For example, if the car is less than 8 years old, the sale price is $500 or more less than its value, or you want the sales tax to be based on the sale price rather than the car's value, the bill of sale must be notarized. .
• Complete a Security Rights Filing Notice to prove that all security rights have been removed.
• Fill out an application for a certificate of ownership.
• Insure the car and present the insurance.
• Obtain an inspection certificate from the State Inspection Center.
• Perform a Vehicle Emission Test and receive proof of passing the Vehicle Emission Test Program test.
• Bring all required documents to the MVA office and pay the transfer of ownership fee ($100) and sales tax (maximum 6% of the sale price).

Common Mistakes

• Do not get a release from the seller

Seller Information

There are several steps that sellers will need to complete in order to transfer ownership of a car in Maryland. They are the following:

• Fill in the reverse side of the name with the buyer. Make sure all fields are filled out. If there is no space for an odometer reading, please provide an Odometer Disclosure Statement.
• Complete the Bond Submission Notice to require the buyer to prove that there are no deposits.
• Remove license plates. They don't go to the buyer. You can either use the license plates on another car or turn them in to the MVA.

Common Mistakes

• All fields on the back of the header are not filled out
• Failure to provide the buyer with a release from the bond

Gift and inheritance of vehicles

Maryland allows cars to be donated, and if they are donated to a family member, no tax is due. However, the recipient will be required to pay a title transfer fee and the process is the same as described above. The process of transferring ownership of a legacy vehicle is complex, which is why Maryland has created a detailed website dedicated exclusively to this topic.

For more information on how to transfer ownership of a car in Maryland, visit the State MVA website.