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When buying a car from a private seller in Maryland, you must obtain the original Certificate of Title. The seller must complete the "Assignment of Ownership" section on the back of the title, including the current odometer reading, purchase price, and date of sale. All sellers listed on the title must sign. As the buyer, you must also sign and print your name. Maryland titles do not require notarization.
Yes, and this is a critical step in Maryland. The seller is legally required to provide you with a valid Maryland Safety Inspection Certificate at the time of sale. This certificate is valid for 90 days from the date of the inspection. Do not buy a car without this certificate, as you cannot register the vehicle until it has passed this inspection. The cost and responsibility of obtaining the inspection fall on the seller.
You will be required to pay a 6% state excise tax. This tax is calculated on the purchase price or the NADA "clean retail" book value, whichever is higher. There is a minimum tax based on a value of $640. This tax is paid directly to the Maryland Motor Vehicle Administration (MVA) when you title the vehicle, not to the seller. You will also pay a separate fee for the title and registration.
Yes, a Bill of Sale (Form VR-181) is required if the purchase price is less than the book value, or if the vehicle is less than 7 years old and the price is at least $500 below the book value. In this case, the bill of sale must be notarized to be accepted by the MVA. Even if not required, it is always a good idea to have a simple bill of sale as a receipt for your records.
You cannot use the seller's license plates; they stay with the seller. To drive the car legally before it's permanently registered, you must obtain a 30-day temporary registration from the MVA. You can get this by visiting an MVA office or an authorized tag and title service with the signed title, the safety inspection certificate, and proof of insurance.
You should title and register the vehicle as soon as possible after purchase. You cannot legally operate the vehicle on public roads until you have, at minimum, a temporary registration. While there isn't a strict penalty deadline for titling, delaying the process can lead to complications and prevents you from legally driving the car.
To complete the title transfer and registration, you will need to bring the following to an MVA office or authorized agent:
The original Maryland Certificate of Title, properly signed by the seller and you.
A valid Maryland Safety Inspection Certificate.
A notarized Bill of Sale (if applicable).
A completed Application for Certificate of Title (Form VR-005).
Proof of Maryland auto insurance.
Your valid driver's license.
Payment for the 6% excise tax, title, and registration fees.
Simplify Private Car Buying in Maryland: Key Steps, Documents, and Expert Tip.
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