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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallAs of October 1, 2026, buyers in Maryland no longer need a notarized bill of sale for a private-party sale of a vehicle less than seven years old. The change removes that notarization requirement—not the title-transfer paperwork, tax, inspection, insurance, or registration steps. A bill of sale is still strongly recommended by the Maryland Motor Vehicle Administration (MVA).
Which Maryland sales are covered by the change?
Maryland HB 251, Chapter 118, took effect October 1, 2026. It applies to used vehicles sold by someone other than a licensed dealer when the vehicle’s designated model year is less than seven years old. For those covered private sales, the former requirement for a notarized bill of sale has been repealed. The MVA implementation bulletin announced the change on September 15, 2026, and the enacted law sets out the statutory change.
- Private sale, vehicle less than seven years old: a notarized bill of sale is no longer required.
- Licensed-dealer sale: this private-party change does not cover the transaction.
- Vehicle seven years old or older: it is outside the age group named in this repeal; check the MVA’s current requirements for the specific transfer.
This is not an abolition of bills of sale or title paperwork. The MVA says a bill of sale is “not always required, but it is strongly recommended,” and it can help document the agreed price if the MVA reviews the taxable value.
How a low sale price can affect Maryland excise tax
The age-based repeal and the price-review rule are separate issues. For covered transactions, the law uses the total purchase price when it is less than $500 below the retail value in the national publication adopted by the Department. When the purchase price is $500 or more below that value, the amended statutory text removes the old notarized-bill-of-sale verification route and identifies the national publication valuation as fair market value.
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In its current processing bulletin, the MVA says its system compares the reported price with the NADA value it returns. If the reported price is within $500 of that value, tax is based on the reported price. If the reported price is more than $500 lower, the buyer may be taxed on the NADA value or submit documentation supporting the lower price. A disputed value or a case in which the system returns no NADA value must go through the MVA portal for agent review. The statute establishes the legal framework; the bulletin explains the MVA’s current operating process.
Documents that may support a lower price
The MVA lists examples of supporting evidence, while noting that the list is not exhaustive. No particular document is guaranteed to be accepted in an individual case.
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- A bill of sale or documentation of the vehicle’s condition.
- A canceled check, bank statement showing payment, or loan paperwork.
- A printed vehicle advertisement or record of communications with the seller.
- An alternative national valuation listing, such as Kelley Blue Book or Price Digest.
What buyers still need to do
Before paying, examine the original title and confirm that its vehicle identification number (VIN) matches the car, the seller is listed as the owner, and any lien will be released as part of the sale. Make sure the required title fields are complete—including sale price, odometer reading, date, and signatures—because errors can lead the MVA to reject the title.
Use the MVA private-party checklist
The MVA’s Buying a Vehicle guidance lists these items for a private-party purchase, as applicable:
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- We are currently unable to make notary stamps for California or Missouri. We apologize for any inconvenience.
- The following states require you to email us a copy of your notary certificate: AK, AZ, GA, HI, NC, ND, NM, NV, OR, RI, TN, UT, WA, WV.
- Completed Certificate of Title Application (VR-005).
- Properly assigned original title.
- Proof of purchase price and a bill of sale, if applicable.
- Odometer disclosure, if applicable.
- Maryland Dealer Reassignment Form, if applicable.
- Maryland Safety Inspection Certificate.
- Valid identification.
- Lien release, if applicable.
- Required taxes and fees.
Buyers can apply in person or by mail. The MVA warns that mail processing may take longer and incomplete paperwork may delay processing. Purchases from outside Maryland can involve additional steps, so check the current MVA page for the circumstances that apply.
Inspection, insurance, title, and registration
The MVA says most used vehicles must pass a Maryland safety inspection before titling and registration. Buyers must have Maryland auto insurance before registering, and title and registration can often be handled together. These requirements are not removed by the change to notarization.
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What sellers should handle
The seller should have a valid title in their name and release any lien before the sale. Complete the title assignment with the buyer’s name and address, sale price, odometer reading, sale date, and seller signature or signatures. If the title lists multiple owners, all must sign unless it says “OR.”
A bill of sale remains useful protection for both parties. Include the vehicle information, price, date, and both parties’ names and signatures. The seller should remove the Maryland plates before handing over the vehicle; plates stay with the seller and should be returned to the MVA. Keep the return receipt and copies of the completed title and bill of sale or other proof of sale. The buyer is responsible for titling, registration, required inspections, and insurance after the sale.
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