Bill Of Sale
What is a Maryland Bill of Sale?
When buying or selling a car, the Maryland bill of sale is a significant document that validates the transfer of ownership of the vehicle being sold or purchased. The requirements of the motor vehicle bill of sale, which vary from state to state, can take the form of a generic contract created by the buyer or seller. Some states have specific regulations regarding the bill of sale, as well as designated forms that can easily be completed. Checking the DMV bill of sale regulations and specifications for your state before purchasing or selling a car is highly recommended to protect both the buyer and the seller in this type of transaction.
Necessary for legal reasons, this document provides the new owner with proof that the specific vehicle was purchased from the previous owner or a licensed dealership. Many states require that a bill of sale be completed, and often notarized with both buyer and seller signatures, before a registration may be obtained for the vehicle. This document, however, does not serve as a title for a vehicle. Information contained in the motor vehicle bill of sale document, such as make, model, year and mileage, are sometimes used to determine the amount for sales and use taxes.
Is a Motor Vehicle Bill of Sale Necessary in Maryland?
If you are buying or purchasing a vehicle in Maryland, there are several stipulations regarding a motor vehicle bill of sale. Many of Marylandâ€™s bill of sale regulations are relevant to the manufacture date of the vehicle and the amount the vehicle is being sold for compared to the book value. This information should be listed accordingly on the DMV bill of sale.
Maryland Bill of Sale Specifics
Generally, the motor vehicle bill of sale should contain basic information about the vehicle, purchaser and seller. There are generic forms available online, and each bill of sale should at least contain all of the basic information regarding the buyer, seller and the relevant vehicle.
In Maryland, alongside the DMV bill of sale, the seller of the vehicle transfers ownership to the new owner by signing the Certificate of Title under a section titled Assignment of Ownership. This is necessary for the vehicle to become registered in the new ownerâ€™s name. A motor vehicle bill of sale is necessary only in certain situations for Maryland. The bill of sale must be created if the vehicle being sold is seven years old or newer and being sold for less than book value. The motor vehicle bill of sale should also be notarized with both the buyer and seller signatures. No sale document is required if the car is more than seven years old, or if the car is being purchased for more than the book value.
Maryland uses the amount the vehicle was purchased for to calculate the appropriate sales tax. On both the Certificate of Title and DMV bill of sale, the correct amount must be listed.