A certificate of title is a document that establishes ownership of a car. If you’re buying or selling a used car in Maryland, the transfer of the title is one of the most crucial steps of the entire process.
Private car sales need a safe, legal title transfer process. This Maryland title transfer guide gives you everything you need to know to sign over a car title in MD.
A vehicle title transfer establishes the buyer of a car as the new owner.
As the seller of a car, you will formalize the transaction when you transfer the ownership of the vehicle by signing over the title to the buyer.
As the buyer in a private auto sale, you will become the legal owner of the vehicle as soon as the seller transfers the title to you.
The buyer and seller are together in person. The buyer has approved of the car, and both parties have agreed on the purchase price.
It’s time to do the actual transferring of ownership. This is where the seller signs the title over to the buyer. It’s probably the single most important step in the entire transaction (well, along with the buyer paying for the car).
When signing the title certificate, always keep the following in mind.
Only use black or blue ink. Any other color will void the title. Do not erase anything or use white-out. Write neatly. Do not use nicknames. Mistakes make the document invalid.The front of a Maryland title has a section for lienholders. If there is a lien on the title, the lienholder will need to release the lien in the green-colored section shown below.
The back of the title has sections for the seller (red), and the buyer (teal). Here is the process for filling out the back of a Maryland title.
1. The seller enters their name, state, county, city, zip code, and street address in the rectangle shown in red, below.
2. The seller enters the exact selling price, date of the sale, odometer reading, signature, and printed name.
3. The buyer enters their signature and printed name.
4. The buyer enters their state, county, zip code, and street address.
5. The buyer enters their Maryland driver's license.
6. The buyer checks what they are applying for (new title only, or transfer of tags and new title).
7. The buyer enters their car insurance provider info, the insurance agent's name as well as the policy number.
8. The buyer marks if the car is titled as tenants by interest or joint tenants and enters the year, month and day in the teal rectangle as shown below.
9. The buyer signs (if there are multiple buyers, each will sign) in the teal rectangle marked “9” below.
You’ve done the deal and are the proud owner of a new-to-you vehicle. Your work is not yet done. There are still steps you need to take to finalize the title transfer with the State of Maryland. You also need to get license plates and register the car with the Maryland Motor Vehicle Administration (MVA).
You will need to submit the following documents to your local MVA office:
Completed Maryland Certificate of Title Copy of the inspection certificate Emissions certificate Lien release (if applicable) Identification (driver’s license or other government ID) Payment for sales tax (Maryland car sales tax is 6%) Payment for title transfer (Maryland title transfer fee is $100)To avoid any fees or penalties, make sure you are registering the car right after transferring the title.
