Mayland Bill of Sale Form – Download Free Template
Buying or selling a vehicle or vessel in Maryland? Without the right paperwork, you may have difficulty registering the vehicle or vessel after your purchase. To sell a vehicle in Maryland 7 years old or newer for less than its book value, you must have a notarized MVA bill of sale.
What is a Maryland Bill of Sale?
Every transaction needs to be recorded, and a bill of sale helps with that when it comes to cars, trailers, and other vehicles.
A bill of sale is a written record of a vehicle or vessel transaction in Maryland. Besides being a record, the bill of sale is used when registering the vehicle or vessel so you can operate it on the road or water. The bill of sale includes the details of the seller and buyer and the vehicle sold between them. It can also be useful in case of disputes or legal issues after the sale.
Why Do You Need a Bill of Sale?
A bill of sale protects the seller and buyer as proof that the ownership of the vehicle or vessel has been successfully transferred. Here’s why you need to get a bill of sale in Maryland.
For Seller
- Release from Liability: The bill of sale ensures you are legally protected if the buyer gets into an accident or commits a crime. It severs your legal link to the vehicle, preventing unnecessary legal trouble.
- Ensure Accurate Tax Reporting: It provides official proof of the exact purchase price, which prevents issues with tax filings. The document serves as undeniable evidence if tax authorities ever question the price.
- Protection in Legal Disputes: A bill of sale acts as legal proof if there are disagreements over payment, ownership, or the vehicle’s condition. It provides a documented transaction record to protect you in court.
For Buyers
- Proof of Ownership Before Title Transfer: It confirms that the buyer legally purchased the vehicle, serving as temporary proof of ownership until the title is officially transferred.
- Protection Against Fraud: This document verifies essential sale details like the VIN, price, and seller’s information, helping buyers avoid scams and ensuring a transparent transaction.
- Required for Registration or Taxes: Some Maryland vehicle registrations or tax filings require a notarized bill of sale, ensuring compliance and preventing delays in legally registering the purchased vehicle.
Types of Maryland Bill of Sale
In Maryland, the type of bill of sale depends on what’s being sold. The most common form is the Vehicle Bill of Sale (Form VR-181) for cars and trucks, but there are also specific forms for trailers, boats, and other personal property. Some transactions require notarization, especially for vehicles under seven years old sold for much less than their book value.
Vehicle Bill of Sale (Form VR-181)
- Purpose: Official form from the Maryland Motor Vehicle Administration (MVA) used for selling and transferring ownership of used cars, trucks, and other vehicles.
- When It’s Required: Must be notarized if the vehicle is less than seven years old and sold for $500 or more below its book value.
- Key Details: Includes the buyer and seller’s information, vehicle description, sale price, and date of sale.
Trailer Bill of Sale
- Purpose: Used for the sale and ownership transfer of trailers, which follow different titling rules from regular vehicles.
- Form: A specific trailer bill of sale is used, though not always the same as the VR-181 form.
Bill of Sale for Other Property
- Purpose: Covers items not handled by the MVA, such as boats, personal equipment, or other property.
- Form: A generic bill of sale template can be used, provided it includes the buyer/seller details, property description, sale price, and date.
Departmental Forms
- Purpose: Certain items, like boats and jet skis, may require special documentation.
- Handled By: The Maryland Department of Natural Resources (DNR), which provides specific forms and instructions for these types of property.
What Should Be Written on the Maryland Bill of Sale?
The bill of sale must include all the transaction details, including both parties’ names, addresses, and vehicle information.
According to the Maryland Motor Vehicle Administration (MVA), the bill of sale should contain:
- Buyer and Seller Information: Full names and addresses of both parties.
- Vehicle or Vessel Details: Make, model, year, vehicle identification number (VIN), or hull identification number (HIN).
- Date of Sale: The exact date when the transaction took place.
- Purchase Price: The amount paid for the vehicle or vessel.
- Odometer Reading: Required for vehicle sales to ensure accuracy.
- Signatures: Both the buyer and seller must sign the document.
How to Register a Vehicle in Maryland
After buying a vehicle, you must register it with the Maryland MVA. To register a vehicle in Maryland, you’ll need to complete a few key steps. First, get a Maryland safety inspection certificate. Then, prepare proof of ownership, such as the vehicle title and a bill of sale, along with a completed Application for Certificate of Title (Form VR-005)
Required documents and information:
- Safety Inspection Certificate: A valid Maryland safety inspection certificate.
- Proof of Ownership: The vehicle’s title and a bill of sale or purchase agreement.
- Application Form: Completed Application for Certificate of Title (Form VR-005).
- Proof of Insurance: Active Maryland auto insurance coverage.
- Identification: A valid state-issued driver’s license or other government ID.
- Lien Information: Lien release letter and lienholder details, if applicable.
- Additional Documents: Proof of vehicle value, lease agreement, or other records, depending on the transaction.
Maryland VIN Check – Verify Vehicle History Before You Buy
Plan to buy a used vehicle? Be sure to check the VIN and get the report before you decide to purchase the vehicle. Check the specifications and the records, like auction, recalls, past usage, and more.
Mileage History
Title Brand
Ownership History
Warranty Status
Sales History
Salvage Title
Usage History
Repair Cost
Auction History
Hail Damage
Ownership Duration
Recalls History
Accident History
Flood Damage
Lien & Loans
Maintenance Schedule
Frequently Asked Questions About the Maryland
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Each state has its own requirements for an auto bill of sale. Click below to find the template for your state!
Do banks notarize the bill of sale?
Do banks notarize the bill of sale?
Yes, though not universal, many banks in Maryland provide notary services for financial documents like mortgages and bills of sale. To confirm availability, contact your local branch.
How long is a notarized bill of sale good for?
Notarized documents typically have no expiration, but check local laws. Some regulations may require updates. Ensure your documents remain valid by understanding your state’s rules.
Is it okay to send a picture of your car’s title?
Avoid sending scans or high-resolution photos due to fraud risks. Insist on in-person viewing; a genuine buyer will want to inspect the car directly.
Does the Maryland bill of sale need to be notarized?
A Maryland bill of sale only needs to be notarized if the vehicle is seven years old or newer and the sale price is below its book value. In all other cases, notarization isn’t required, though it’s still a good idea to have it notarized for added security and proof of authenticity.
What is required for a bill of sale in Maryland?
A bill of sale in Maryland is required if a vehicle is under seven years old and sold for less than its book value. It must include key details such as the buyer’s and seller’s names, a description of the vehicle, the sale price, and the date of the transaction to make it valid and complete.
