Gifting a car to a family member is a great way to get rid of a car that you no longer want and to help a member of your family at the same time. The Maryland Motor Vehicles Administration (MMVA) is responsible for all driving-related issues in Maryland, and they have an established procedure for this gift. When you’re thinking of gifting a car in Lanham, MD, these are the rules you’ll need to follow.
Rules for Gifting a Car to a Family Member in Lanham, MD
The Documentation You’ll Need
Certificate of Title
This document is essential as it confirms the legal owner of a vehicle. If you don’t have your original title, you can get a copy from the MMVA. You can apply online, by mail, or in person. The fee is $20, and the MMVA will mail the copy to you the next business day. The title has a section on the back called Assignment of Ownership, and both you and your relative will need to complete this section.
Odometer Disclosure Statement
This form, VR-197, must be completed by you to confirm the odometer reading of the car when you make the gift.
Bill of Sale
Form VR-181 must be completed by both you and your relative. Although you are making a gift and not selling the car, you fill in the sections of the form as the seller, and your relative will fill in the sections of the form as the buyer. In the purchase price section, you’ll write a Gift instead of a price.
Notice of Security Interest Filing
This form, VR-217, only applies if you have a lien on your car. A car can’t be sold with a lien attached to it, and this form confirms that any lien has been discharged.
Certificate of Inspection
This certificate is required for all used cars, and it confirms that the car is fit to drive on the roads in Maryland. If you cannot acquire one before you make the gift, your family member can apply for a 30-day temporary registration.
Procedure
The procedure for gifting a car is relatively straightforward. As we’ve seen, you complete the title section as the seller, and your family member completes the section as the buyer. Your family member will need to get insurance for the car, as it’s a legal requirement that all cars on Maryland’s roads have valid insurance.
Once the documents are signed and dated, you give them to your family member. A gift to a family member doesn’t attract the 6% excise tax that applies to a gift to a non-family member. Your family member will then take the documents to the local MMVA office and apply for a new title. The MMVA will register the change in title and mail your family member a new title document.
Now that you’ve been gifted a car in Maryland, it might be time to look for a replacement. Come see our wide range of new Ford vehicles and used cars at DARCARS Ford of Lanham.
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