MD Lease Buyout Title Transfer Guide

The MVA requires the lease agreement for a few important reasons. Only the persons listed on the lease agreement are eligible to receive the new title ownership without paying excise tax. The lease agreement must also show that the lease lasted at least 6 months to qualify for a tax-free title transfer.

Even if you do not pay excise tax, the Bill of Sale officially certifies that you purchased the vehicle. It is a required document for all lease buyout title transfers in Maryland.

Yes, you are eligible to add or remove a co-owner at the time of a lease buyout. However, the MVA requires a Gift Title Application (Form VR-103) to verify your eligibility.

Yes, you are eligible to keep your existing tags and plates during a lease buyout transaction in Maryland.

No, you do not need to complete a safety inspection for a lease buyout. Since the vehicle was previously registered in Maryland, a new inspection is not required.

Unless you have already transferred your leased vehicle to Maryland tags and title, you are not eligible for a tax-free lease buyout in Maryland.

You can follow the standard Maryland title transfer process. Please note that this transaction is subject to Maryland excise tax of 6.5% of the vehicle’s purchase price.