In Maryland, a bill of sale is required for most private motor vehicle sales and for many boat purchases, and it must be notarized whenever the vehicle is less than seven years old. For cars and trucks, the Motor Vehicle Administration provides Form VR-181; for boats, the Department of Natural Resources uses Form B-118. Even when no rule forces the issue, a signed bill of sale protects both sides if the price, the date of transfer, or ownership itself is ever questioned.
When Maryland Requires a Bill of Sale for a Vehicle
The MVA’s Form VR-181 is the standard bill of sale for private vehicle sales, and its main job is to document the purchase price the MVA uses when calculating your titling tax.1Maryland MVA. Bill of Sale – Form VR-181 Any time VR-181 is used to establish the price, the signatures have to be notarized.
The requirement then tightens with vehicle age. For a used vehicle coming from a title state, a notarized bill of sale signed by all buyers and sellers must accompany the title if the vehicle is less than seven years old. For a used vehicle from a non-title state or a foreign country, a bill of sale is required regardless of age, but notarization is only mandatory when the vehicle is under seven years old.2Maryland MVA. Application for Certificate of Title Newer vehicles get closer scrutiny because their fair market value is easier to pin down, and underreporting the price to shrink the titling tax is something the MVA actively watches for.
Maryland also requires an odometer disclosure at the time of sale. The seller has to give the buyer the current odometer reading, and that certification goes to the MVA with the title application.3Legal Information Institute. Maryland Code of Regulations 11.13.06.03 – Odometer Disclosure Certification It’s usually handled on the title assignment, but it’s a separate legal requirement.
What a Maryland Vehicle Bill of Sale Must Include
A solid VR-181 or private vehicle bill of sale covers the same fundamentals:
- Full legal names and current addresses for buyer and seller. Title applications require the owner’s Maryland residence and mailing address.4Maryland General Assembly. Maryland Code Transportation 13-104 – Application for Certificate of Title in General
- The exact date of sale, which also starts any downstream deadlines.
- The vehicle’s year, make, model, body style, and Vehicle Identification Number. The VIN should match the title character for character.
- The actual purchase price paid.
- Any condition terms, such as an “as-is” clause or a stated warranty.
- Signatures of both buyer and seller, notarized if the vehicle is under seven years old.
Why the Price on the Form Matters
Maryland charges a 6.5% titling tax on vehicles, calculated on the vehicle’s fair market value, with a minimum tax of $41.60.5Maryland MVA. MVA Fee Listing The operative phrase is “fair market value,” not “purchase price.” Buy a three-year-old sedan from a friend for $5,000 when the book value is $18,000, and the MVA will likely tax the higher figure. The bill of sale documents what you actually paid, but it doesn’t necessarily control what you’re taxed on.
On top of the titling tax, there’s a $200 fee for the title certificate itself.5Maryland MVA. MVA Fee Listing A $20,000 vehicle generates $1,300 in titling tax plus the $200 certificate fee. Budget for both before you get to the counter.
Gifting a Vehicle Between Family Members
When a vehicle changes hands as a genuine gift between qualifying family members, no bill of sale is used because no money changes hands. In its place, the MVA requires an Application for Maryland Gift Certification identifying the relationship between giver and receiver. To qualify, no money or anything of value can be exchanged.6Maryland MVA. Titling – Gift to Family Member
If the gift qualifies, the receiver avoids the 6.5% titling tax. Qualifying relationships include spouses, children, adopted children, grandchildren, stepchildren, parents, stepparents, siblings, half-siblings, and grandparents. Aunts and uncles who are 65 or older can gift to nieces and nephews using a separate Certified Statement on Form VR-299; an aunt or uncle under 65 gifting to a niece or nephew does not qualify, and the full titling tax applies.6Maryland MVA. Titling – Gift to Family Member If giver and receiver have different last names, expect to provide a birth certificate, marriage certificate, certificate of civil union, divorce decree, or adoption certificate to prove the relationship.
Boat and Vessel Sales
Boat transactions run through the Maryland Department of Natural Resources, not the MVA. The standard vessel bill of sale is Form B-118, which captures the registration or USCG documentation number, hull identification number, manufacturer, length, year, and motor details including serial number, manufacturer, and horsepower.7Maryland Department of Natural Resources. Bill of Sale for a Vessel
Whether the bill of sale is required depends on how the boat was previously titled. For a used vessel from a title state, a certified and notarized bill of sale is required if the buyer’s name, sale date, or purchase price is missing from the title assignment. For a used vessel from a non-title state or a previously USCG-documented vessel, a notarized bill of sale is always required. New boats need one when the manufacturer’s certificate of origin doesn’t include the buyer’s name, price, date of sale, or all owners’ signatures. Alongside the bill of sale, you’ll also file Form B-240, the Application for Title and Registration, which applies to essentially every type of vessel transaction.8Maryland Department of Natural Resources. Boat Registration
Maryland gives you 30 days after purchase to register the vessel and pay the vessel excise tax. If the boat was bought elsewhere and brought into Maryland waters, the 30-day clock starts when the vessel enters the state. Miss the deadline and the penalty is 10% of the excise tax due, plus 1.5% interest per month.8Maryland Department of Natural Resources. Boat Registration On an expensive boat, those numbers climb fast.
Regulated Firearms Are Different
A bill of sale alone does not satisfy Maryland’s rules for transferring a handgun or other regulated firearm between private parties. Every person acquiring a regulated firearm, whether by purchase, gift, or inheritance, must complete Maryland State Police Form 77R, and private-party sales have to be processed through either a licensed firearms dealer or a Maryland State Police barrack.9Maryland Department of State Police. Regulated Firearm Purchases A separate bill of sale isn’t required on top of the 77R, but keeping one for your personal records is still smart.
Other Personal Property
Maryland doesn’t require a bill of sale for furniture, electronics, equipment, or most other personal property. Skipping one on anything valuable is still a mistake you won’t appreciate until you need to prove what you paid or when ownership changed. Insurance claims, tax deductions, and ownership disputes all get easier when you have a signed document with both parties’ names, a description of the item, the price, the date, and any condition notes like “sold as-is.”
Notarization and Keeping Copies
Notarization is mandatory, not optional, in several Maryland scenarios. Any motor vehicle bill of sale used to establish purchase price requires it.1Maryland MVA. Bill of Sale – Form VR-181 The requirement is absolute for used vehicles under seven years old, whether from a title state or not.2Maryland MVA. Application for Certificate of Title For boats, a certified and notarized bill of sale is required whenever the title or certificate of origin doesn’t carry all the transaction details.8Maryland Department of Natural Resources. Boat Registration
Once the document is signed and notarized, make at least two copies. The buyer needs one for the title application at the MVA or DNR, and the seller keeps one as proof they no longer own the property. If the buyer racks up parking tickets or gets in an accident before retitling the vehicle, the seller’s copy of the bill of sale is the fastest way to show the car had already changed hands.