# Transportation (GTR)

## Title 13. Vehicle Laws -- Certificates of Title and Registration of Vehicles

### Subtitle 5. Transfer of Registration

#### Section 13-501

(a)

  (1) Except as otherwise provided in this subtitle, if the owner of a vehicle registered in this State assigns or otherwise transfers his title or interest in the vehicle, the registration of the vehicle expires, unless the owner gives the transferee written permission to use the existing registration plates.

  (2) If the owner does not give this permission, the owner shall remove the registration plates from the vehicle.

(b) A transferee who has been given written permission to use the existing registration plates may drive and permit the vehicle to be driven with those plates for not more than 10 days from the date of the transfer.

(c) Before the 10-day period described under subsection (b) of this section expires, the transferee shall remove the plates from the vehicle and return them promptly to the former owner of the vehicle or to the Administration.

(d) When the 10-day period expires or, if earlier, when the registration plates are removed, the registration of the vehicle expires.

(e) After 24 hours of the time the registration of the vehicle expires, neither the transferee nor any other person, other than the person to whom the registration plates originally were issued, may have the registration plates in his possession, whether or not they are in use.

(f) This section does not prohibit the former owner from transferring the registration plates to another vehicle, as provided in this subtitle.

#### Section 13-502

(a) Except as otherwise permitted in this subtitle, before the transferee of a registered vehicle may drive a vehicle on a highway, the transferee shall apply for and obtain a new registration of the vehicle, as on an original registration.

(b) Except as otherwise permitted in this subtitle, before the transferee of a registered vehicle may permit the vehicle to be driven on a highway, the transferee shall apply for and obtain a new registration of the vehicle, as on an original registration.

(c) If the vehicle is not driven on a highway, however, the vehicle need not be registered.

#### Section 13-502.1

(a) The former registered owner of a transferred vehicle may have its plates and registration number transferred to another vehicle in the same classification by applying to the Administration and paying a transfer fee established by the Administration.

(b)

  (1) If the vehicle to which the transfer is made is one for which the registration fee is higher than that required for the former vehicle, the owner shall pay, in addition to the transfer fee, the difference between the registration fee paid for the former vehicle and the registration fee otherwise required for the vehicle to which the transfer is made.

  (2) If the vehicle to which the transfer is made is one for which the registration fee is lower than that required for the former vehicle, the Administration need not make any refunds of the difference.

#### Section 13-503

(a) If the transferee of a vehicle is a licensed dealer who holds the vehicle for sale, the transferee need not obtain a new registration of the vehicle if he:

  (1) Lawfully drives it under a dealer's registration plate; or

  (2) Does not drive the vehicle or permit it to be driven on the highways.

(b) If a licensed dealer transfers a vehicle to a person who possesses current registration plates issued to another registered vehicle, and if these registration plates are transferable, the dealer shall issue to the transferee a permit that authorizes the transferee to use these current registration plates on the transferred vehicle for a period of not more than 60 days from the date of the transfer.

(c) The dealer may not issue more than one of the permits described under subsection (b) of this section for any vehicle.

(d) The permit described under subsection (b) of this section shall be issued by the dealer on the form and in the manner that the Administration requires.

(e) The permit described under subsection (b) of this section shall be signed by the dealer and carried and displayed the same as registration cards are required to be carried and displayed under Subtitle 4 of this title.

#### Section 13-503.1

(a) If, whether by act of the parties or by operation of law, the title or interest of an owner in a vehicle is transferred in a manner specified in subsection (b) of this section, the transferee may continue to use the same registration plates on the vehicle after the transfer.

(b) This section applies to the transfer of the title or interest of an owner in a vehicle if the vehicle is registered in the:

  (1) Joint names of spouses and is transferred to the individual name of either spouse;

  (2) Individual name of either spouse and is transferred to their joint names or to the individual name of the other spouse;

  (3) Joint names of a parent and child and is transferred to the individual name of either party;

  (4) Name of an individual and is transferred to the joint names of that individual and the individual's parent or child; or

  (5) Name of an individual and is transferred to the name of a child or parent of that individual.

(c) In all other respects the transfer shall be treated the same way as any other transfer by a private owner of a registered vehicle.

#### Section 13-503.2

If the title or interest of an owner in a vehicle is transferred as a result of a reorganization such that the vehicle is exempt from the excise tax under the provisions of Sec. 13-810(c)(8) of this title, the transferee may continue to use the same registration plates after the transfer. In all other respects the transfer shall be treated the same way as any other transfer by a private owner of a registered vehicle.

#### Section 13-503.3

(a) If the title or interest of an owner of a vehicle is transferred into a written inter vivos trust in which the transferor is the primary beneficiary, the transferee may continue to use the same registration plates after the transfer.

(b) In all other respects the transfer shall be treated the same way as any other transfer by a private owner of a registered vehicle.

#### Section 13-504

(a) Except as otherwise provided in this section, if the title or interest of an owner in a registered vehicle passes to another person other than by voluntary transfer:

  (1) The registration of the vehicle expires; and

  (2) The vehicle may not be driven on a highway until the person entitled to possession of the vehicle applies for and obtains a new registration of the vehicle.

(b) However, the person entitled to possession of the vehicle, or his authorized representative, may drive the vehicle on highways in this State for a distance of not more than 200 miles, but only from the place that the person or his authorized representative obtained possession of the vehicle to the person's place of business, residence, or other place where the vehicle is to be kept.

(c) During the operation of a vehicle described in subsection (b) of this section, the registration plates issued to the former owner may be displayed on the vehicle.

(d) After the operation of a vehicle described in subsection (b) of this section is completed or, even before this operation is completed, on request of the former owner or the Administration, the person who obtained possession of the vehicle shall return its registration plates to the former owner or to the Administration.

(e) After 24 hours of the earlier of the request or the completion of the operation described in subsection (b) of this section, no person, other than the person to whom the registration plates originally were issued, may have the registration plates in his possession, whether or not they are in use.

(f) If the title or interest of an owner in a registered vehicle passes to a legatee or distributee as a result of testamentary disposition or intestate devolution, the personal representative, legatee, or distributee may drive the vehicle and permit it to be driven on the highways, without applying for a new registration, until the expiration of the last annual registration in the name of the deceased owner.

(g) If the interest in a registered vehicle of a joint owner who has died passes to the surviving spouse through joint ownership, the surviving spouse may drive the vehicle and allow it to be driven on a highway, without applying for a new registration, until the expiration of the last registration in the name of the joint owners.

#### Section 13-505

If an owner transfers his title or interest in a vehicle that is to be scrapped, dismantled, or destroyed, the owner immediately shall mail or deliver the registration card and registration plates of the vehicle to the Administration for cancellation, unless the registration plates are transferred to another vehicle as provided in this subtitle.

#### Section 13-506

(a)

  (1) A salvage certificate shall be issued in accordance with the provisions of this section.

  (2) A salvage certificate issued under this section shall:

    (i) Be issued in the name of the applicant; and

    (ii) Serve as an ownership document.

(a-1) For purposes of this section, a vehicle has not been acquired by an insurance company if an owner retains possession of the vehicle upon settlement of a claim concerning the vehicle by the insurance company in accordance with Sec. 13-506.1 of this subtitle.

(b) The Administration shall issue a salvage certificate:

  (1) To an insurance company or its authorized agent that:

    (i) Is licensed to insure automobiles in this State;

    (ii) Acquires a vehicle as the result of a claim settlement; and

    (iii) Within 10 days after the date of settlement, applies for a salvage certificate as provided in subsection (c) of this section;

  (2) To an automotive dismantler and recycler that:

    (i) Acquires a salvage vehicle from a source other than an insurance company licensed to insure automobiles in this State;

    (ii) Acquires a salvage vehicle by a means other than a transfer of a salvage certificate; and

    (iii) Applies for a salvage certificate as provided in subsection (d) of this section; or

  (3) To any other person who:

    (i) Acquires or retains ownership of a vehicle that is salvage, as defined in Sec. 11-152 of this article;

    (ii) Applies for a salvage certificate on a form provided by the Administration; and

    (iii) Pays a fee established by the Administration.

(c)

  (1) For each vehicle that is acquired as a result of a claim settlement arising from an accident that occurred in the State, an insurance company or its authorized agent shall apply:

    (i) For a salvage certificate on a form provided by the Administration for a vehicle titled in the State; or

    (ii) Electronically for a salvage certificate for a vehicle titled in a foreign jurisdiction.

  (2) The application under paragraph (1) of this subsection shall be accompanied by:

    (i) The certificate of title of the vehicle or, if the certificate of title is defective, lost, or destroyed, an affidavit of ownership on a form and in a manner prescribed by the Administration and a copy of the settlement check or other evidence of final payment;

    (ii) A statement by the insurance company that:

      (1) The cost to repair the vehicle for highway operation is greater than 75% of the fair market value of the vehicle prior to sustaining the damage for which the claim was paid and the vehicle is repairable;

      (2) The vehicle is not rebuildable, will be used for parts only, and is not to be retitled;

      (3) The vehicle has been stolen;

      (4) The vehicle has sustained flood damage; or

      (5) The vehicle has been acquired by an insurance company as a result of a claim settlement and the cost to repair the vehicle is 75% or less of the fair market value of the vehicle prior to sustaining the damage for which the claim was paid; and

    (iii) A fee established by the Administration.

  (3) Subject to the provisions of Sec. 13-507(c)(2) of this subtitle, a salvage certificate issued under this paragraph shall contain a conspicuous notation by the Administration that describes which of the statements under paragraph (2)(ii) of this subsection applies to the vehicle.

  (4) To determine the cost to repair a vehicle for highway operation for purposes of Sec. 11-152 of this article and paragraph (2)(ii) of this subsection, a person may not use the cost of:

    (i) Towing, storage, or vehicle rental; or

    (ii) Repairing cosmetic damage.

  (5) The calculation under the 75% cost of repair threshold under paragraph (2) of this subsection may not affect the right of an insurer or a vehicle owner to make an economic or safety related decision to not repair the vehicle.

  (6) The Administration, in consultation with the Department of State Police and other interested parties, shall adopt regulations to implement this subsection.

(d)

  (1) An automotive dismantler and recycler may apply for a salvage certificate on a form provided by the Administration.

  (2) The application under paragraph (1) of this subsection shall be accompanied by:

    (i) The document through which ownership of the vehicle was acquired; and

    (ii) A fee established by the Administration.

(e) The Administration shall maintain records to indicate that a vehicle:

  (1) Was transferred as salvage; and

  (2) May not be titled or registered for operation in this State except in accordance with Sec.Sec. 13-506.1 and 13-507 of this subtitle.

(f) The Administration shall establish a fee for:

  (1) A duplicate salvage certificate; and

  (2) A corrected salvage certificate.

#### Section 13-506.1

(a) An insurance company shall promptly notify the Administration if:

  (1) The company makes a claim settlement on a vehicle that is salvage; and

  (2) The owner retains possession of the vehicle.

(b) The notice under subsection (a) of this section shall:

  (1) Be accompanied by the title to the vehicle and a fee established by the Administration under Sec. 13-117 of this title for a corrected title;

  (2) Include the name of the vehicle's owner and a description of the vehicle; and

  (3) Include a statement by the insurance company that the salvage certificate bears a notation under Sec. 13-506(c)(2)(ii)1, 2, 3, or 4 of this subtitle.

(c) On receipt of the notice under subsection (a) of this section, the Administration shall:

  (1) Record that the vehicle has been declared salvage; and

  (2)

    (i) In the case of a repairable vehicle described in Sec. 13-506(c)(2)(ii)1 or 4 of this subtitle, send a notice to the owner of the vehicle that the vehicle registration will be suspended unless the owner submits proof satisfactory to the Administration that the vehicle has been inspected for safety, in compliance with Title 23 of this article, within 90 days of the date of the notice; or

    (ii) In the case of a vehicle described in Sec. 13-506(c)(2)(ii)2 of this subtitle:

      (1) Issue a salvage certificate to the owner of the vehicle; and

      (2) Send a notice to the owner of the vehicle that the vehicle registration has been suspended and directing that the vehicle's registration plates be returned immediately to the Administration.

(d) In accordance with Sec. 13-507 of this subtitle, after a vehicle described in Sec. 13-506(c)(2)(ii)1 or 4 of this subtitle has been inspected for safety in accordance with Title 23 of this article, the Administration shall issue to the owner a new certificate of title for the vehicle.

#### Section 13-507

(a)

  (1) An application for a certificate of title of a vehicle for which a salvage certificate has been issued shall be made by the owner of the vehicle on a form that the Administration requires.

  (2) An application under paragraph (1) of this subsection shall be accompanied by:

    (i) Except as provided in subsection (c)(3) of this section, the salvage certificate for the vehicle;

    (ii) A certificate of inspection issued by a county police department or the Department of State Police; and

    (iii) A certificate of inspection as required under Title 23 of this article.

  (3)

    (i) The Administration may establish a fee for an inspection under paragraph (2)(ii) of this subsection.

    (ii)

      (1) The fees established under this paragraph shall be collected by the Administration or the Automotive Safety Enforcement Division of the Department of State Police.

      (2) The fees collected under this subparagraph shall be paid to the Automotive Safety Enforcement Division of the Department of State Police for the purpose of recovering the cost of administering the salvage inspection program and may not be credited to the Gasoline and Motor Vehicle Revenue Account for distribution under Sec. 8-403 or Sec. 8-404 of this article.

(b)

  (1) The certificate of title issued by the Administration shall be:

    (i) Issued in the name of the applicant; and

    (ii) In a form as provided in this subsection.

  (2)

    (i) The Administration shall issue a certificate of title that contains a conspicuous notation that the vehicle is "rebuilt salvage" if the salvage certificate accompanying the application bears a notation under Sec. 13-506(c)(2)(ii)1 of this subtitle.

    (ii) The Administration may not issue a certificate of title for a vehicle if the salvage certificate for the vehicle bears a notation under Sec.13-506(c)(2)(ii)2 of this subtitle.

  (3) The Administration shall issue a certificate of title that contains a conspicuous notation that the vehicle is "Flood Damaged" if the salvage certificate accompanying the application bears a notation under Sec. 13-506(c)(2)(ii)4 of this subtitle.

  (4) The Administration shall issue a certificate of title that contains a conspicuous notation that the vehicle is "X-Salvage" if the salvage certificate accompanying the application bears a notation under Sec. 13-506(c)(2)(ii)5 of this subtitle or is issued under Sec. 13-506(d) of this subtitle.

(c)

  (1) When an insurance company makes a claim settlement on a vehicle that has been stolen, the company shall apply for a salvage certificate as provided in Sec. 13-506(c) of this subtitle.

  (2) On receipt of an application under this subsection, the Administration:

    (i) Shall make the appropriate notation in its records; and

    (ii) May not issue the salvage certificate until the vehicle is recovered.

  (3) When a vehicle that has been stolen is recovered, the Administration shall:

    (i) Issue a salvage certificate for the vehicle if the insurance company submits a certification under Sec. 13-506(c)(2)(ii)1, 2, 4, or 5 of this subtitle; or

    (ii) Issue a certificate of title in the name of the insurance company in lieu of a salvage certificate if the insurance company states that the vehicle has sustained damage, except for flood damage, that costs 75% or less than the fair market value of the vehicle to repair.

  (4) The provisions of subsection (b) of this section apply to a certificate of title issued under this subsection.

  (5) A vehicle for which a certificate of title was issued under paragraph (3)(ii) of this subsection is exempt from the vehicle excise tax as provided in Sec. 13-810(a)(9) of this title.

(d) If the Administration receives an application for a certificate of title for a vehicle accompanied by an ownership document issued by another state containing a notation under the laws of the issuing state that the vehicle is in a condition that is substantially similar to a vehicle that is rebuilt salvage under Maryland law, the certificate of title issued by the Administration shall contain a similar notation.

(e) The Administration may adopt regulations to implement this section.

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Md. Code Ann., Transp. (as displayed at mgaleg.maryland.gov, October 16, 2026)