Bill of Sale Requirements in Maryland

When you transfer ownership of a vehicle through a sales transactions, you will need to to complete the transfer on the vehiicle. Additionally, you will need to complete a bill of sale as part of the transaction's papework.

Read below to learn more about completing a bill of sale for your vehicle sale or purchase.

Bill of Sale in Maryland

When you sell a car in the state of Maryland, you will need to provide the buyer with several documents, including a Bill of Sale (Form VR-181). The bill of sale serves two main roles:

  • To note the agreed-upon price of the vehicle.
  • To record the odometer reading.

It also protects you, as the seller, by proving transfer of ownership and releasing you from future liability regarding that vehicle.

Bill of Sale Requirements

Bills of sale are required in all Maryland vehicle sales. When buying a car from a dealership, the dealer will provide a completed Bill of Sale (Form VR-181) for you to have when registering the vehicle. In a private party sale, you are also required to either provide or receive the form to complete the purchase. The form must be notarized if:

  • The vehicle is under 7 years old.
  • The final price is less than the vehicle's book value by $500 or more.
  • You want to pay the excise tax based on the sale price and not on the book value.

Completing a Bill of Sale

Filing out the bill of sale is fairly simple. Be prepared to provide the following on your bill of sale:
  • The vehicle's:
    • Make.
    • Model.
    • Year.
  • The selling price of the car.
  • An odometer reading.
  • Names, and signatures of both the buyer and seller.
  • The date of the sale.

Generic Bill of Sale

If you have trouble downloading the Maryland Bill of Sale form, you can use our guide to completing a bill of sale where you can easily complete and print the necessary paperwork.

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