Buying a used car in Maryland? A notarized bill of sale is no longer required in some private sales

Buying a used car through a private sale in Maryland just got a little simpler.

A notarized bill of sale is no longer required for private sales of vehicles less than seven years old, under a change that took effect Oct. 1.

But buyers should still pay attention to the vehicle's listed price.

The Maryland Motor Vehicle Administration says if the reported sale price is within $500 of the vehicle's NADA value, an industry estimate of what the vehicle is worth, taxes will be calculated based on the reported price.

If the reported price is more than $500 below the NADA value, the buyer can be taxed based on the NADA value or provide documentation supporting the lower sale price.

That documentation could include a bill of sale, records showing the vehicle's condition, financial documents showing the payment, an advertisement for the vehicle, or communications with the seller about the price.

If the vehicle's value is disputed, or the system cannot determine a NADA value, an MVA agent will need to review the transaction.

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