What a Maryland bill of sale is and why you need one
A bill of sale is a written record that you and the buyer (or seller) sign to show that a car has changed hands. In Maryland, it serves as proof of the transaction — it documents who owned the car, who owns it now, the price paid, and the date of the sale. The state does not require a bill of sale to transfer a title, but having one protects both you and the other person by creating a paper trail if questions come up later.
If you are selling a car, a bill of sale protects you by showing you no longer own the vehicle — so you cannot be held responsible for traffic tickets, accidents, or unpaid parking fees that happen after the sale. If you are buying a car, it proves you paid for it and when, which matters if there is a dispute about the condition or the price.
Maryland does not have an official state bill of sale form, but you can use a straightforward written agreement that includes the required information. Many people use a template from the Maryland Motor Vehicle Administration (MVA) website or a general bill of sale template, as long as it covers the key details.
Key Takeaways
- Maryland does not require a bill of sale by law, but having one in writing protects both the buyer and seller by documenting the transaction.
- The bill of sale must include the names and addresses of both parties, the vehicle identification number (VIN), the sale price, and the date of sale.
- Both the seller and buyer must sign the bill of sale, and it is wise to have the signatures witnessed or notarized for extra protection.
- You can use a template from the MVA website, a general bill of sale form, or write your own as long as it includes all required information.
- The bill of sale is separate from the title transfer — you will still need to handle the title change at the MVA to complete the sale.
What information must be on the bill of sale
The bill of sale should include the full legal names and addresses of both the seller and the buyer. Use the names exactly as they appear on your driver's license or identification. If there are two owners on the title, both must sign the bill of sale.
You must also include the vehicle identification number (VIN), which is a 17-character code found on the dashboard on the driver's side, on the title, and on insurance documents. Write down the complete VIN — do not abbreviate it. Add the year, make, model, and color of the car, the odometer reading at the time of sale, and the sale price in dollars.
The date of the sale should be written clearly. If the sale happens over multiple days, use the date when the money changes hands and the keys are transferred. Both the seller and buyer must sign and date the document. Some people also add the condition of the car (for example, "as-is" or "with warranty") to avoid disputes later.
Where to find a bill of sale template
The Maryland Motor Vehicle Administration does not publish an official bill of sale form, but the MVA website includes information about what should be in one. You can read a general bill of sale template from the MVA site or use one from a reputable source like a legal document website.
Many people also write their own bill of sale on plain paper, as long as it includes all the required information and is signed by both parties. If you write your own, make sure it is clear and legible — handwritten is fine, but print neatly so there is no confusion about names, numbers, or dates.
You can also ask your bank or credit union if they have a template, or check with a local attorney if you want extra assurance that the form is correct. The cost of a template is usually free or very low.
How to sign and complete the bill of sale
Both the seller and the buyer should read the bill of sale carefully before signing. Make sure all the information is correct — names, VIN, price, and date. If anything is wrong, cross it out neatly, write the correction above it, and both parties should initial the change.
Sign the document in front of each other if possible. Some people have a witness present or get the signatures notarized at a bank or notary public office. While Maryland does not require this, a notarized signature adds a layer of protection because it proves the person who signed was actually the person they claimed to be.
Make at least three copies: one for the seller, one for the buyer, and one to keep with your records. If you are financing the car through a bank or credit union, they may also want a copy. Keep your copy in a safe place — you may need it later if there is a question about when you sold the car or what condition it was in.
The difference between a bill of sale and a title transfer
A bill of sale is not the same as transferring the title. The bill of sale is a record between you and the buyer that the sale happened. The title transfer is the legal process that removes the seller's name from the state's records and puts the buyer's name on them.
In Maryland, the buyer must take the signed title, the bill of sale, and other documents to the MVA within a certain timeframe to register the car in their name. The seller should also notify the MVA that they have sold the car, even though the buyer is responsible for the title transfer. You can do this by submitting a Notice of Sale form to the MVA.
Having both documents — the bill of sale and the completed title transfer — creates a complete record of the transaction. The bill of sale shows the agreement between you and the buyer, and the title transfer shows that the state recognizes the new owner.
What happens if you sell a car without a bill of sale
Maryland does not legally require a bill of sale, so you can sell a car without one. However, without a written record, it becomes much harder to prove when the sale happened, what price was paid, or what condition the car was in. If a problem comes up later — for example, the buyer gets in an accident and claims you knew the brakes were bad — you have no written proof to protect yourself.
Selling without a bill of sale also makes it easier for the buyer to claim they never received the car or paid less than they actually did. If you are the buyer and there is no bill of sale, you have no proof of purchase if the seller later claims you still owe money or if the car has hidden damage.
For these reasons, even though it is not required, a bill of sale is a smart step for any car sale. It takes only a few minutes to complete and can save you from serious problems down the road.
Frequently Asked Questions
Does Maryland require a bill of sale for a car sale?
No, Maryland does not legally require a bill of sale. However, having one in writing is strongly recommended because it protects both the buyer and seller by documenting the transaction, the price, and the date. Without it, either party has a harder time proving the terms of the sale if a dispute comes up later.
Can I use a bill of sale from another state in Maryland?
Yes, a bill of sale from another state can be used in Maryland as long as it includes all the required information: names and addresses of both parties, the VIN, the sale price, and the date. Maryland does not have a specific form requirement, so any clear, signed bill of sale will work.
What if I lose my copy of the bill of sale after I sell the car?
If you no longer have your copy, ask the buyer for another one or ask them to sign a duplicate. If that is not possible, you can submit a Notice of Sale to the MVA to create an official record that you sold the car on a certain date. This protects you if questions come up about your ownership later.
Do I need to get the bill of sale notarized?
No, Maryland does not require a notarized bill of sale. However, having a notary public witness the signatures adds extra proof that both parties actually signed the document. This can be helpful if there is ever a dispute about whether the sale really happened.
What should I do with my copy of the bill of sale after the sale?
Keep your copy in a safe place — a file folder, safe deposit box, or digital scan — for at least several years. You may need it to prove you sold the car, what price you received, or what condition it was in. This is especially important if the buyer later has an accident or gets a ticket and tries to claim you were still the owner.