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SB 125

Vehicle Laws - Transfer of Used Vehicles - Repeal of Notarized Bill of Sale Requirement

2026 Regular Session

Maryland eliminates notarization requirement for used vehicle bills of sale, reducing transaction barriers but potentially increasing fraud risks and ownership documentation disputes.

Approved by the Governor - Chapter 119
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Bill Summary · SB 125

Legislative bill overview

SB 125 repeals Maryland's requirement that bills of sale for used vehicle transfers be notarized. Currently, sellers and buyers must have their transfer documents notarized by an official; this bill eliminates that mandate, allowing private sales to proceed with unnotarized bills of sale. The bill has progressed through favorable committee reports and passed both second and third readings.

Why is this important

This change affects hundreds of thousands of Marylanders who buy and sell used vehicles privately each year. Eliminating the notarization requirement reduces transaction costs, time, and friction in the used car market by removing a procedural barrier that many consider outdated in an increasingly digital economy.

Potential points of contention

  • Fraud vulnerability: Notarization provides government-verified authentication of signatures, deterring forged documents; removing this safeguard may increase title fraud and disputes over vehicle ownership
  • Title clarity concerns: Without notarized documentation, questions may arise about whether a legitimate sale occurred, potentially complicating future ownership transfers or liability disputes
  • Unequal impact: Lower-income buyers who lack ready access to notary services may currently benefit most, but removing the requirement could disadvantage those who need the legal protection notarization provides

Compiled from official sources — confirm details with the bill’s official record.

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