How To Sell a Car in Massachusetts

The Massachusetts Registry of Motor Vehicles (RMV) administers the statutes and rules governing the sale of a motor vehicle in Massachusetts. Private parties engaged in vehicle transfers must comply with specific requirements for title assignment, vehicle inspection, bill of sale documentation, odometer disclosure, sales tax payment, and registration to ensure the transaction is legally valid and ownership is properly transferred to the buyer.

What You Need To Know Before Selling a Car in Massachusetts

Title Law and Ownership Requirements

Under Massachusetts General Laws Chapter 90D § 4, any person who acquires a motor vehicle is required to apply for a certificate of title. The certificate of title is the primary document establishing proof of ownership and serves as evidence of the seller's right to transfer the vehicle to the buyer. The title must be properly endorsed and assigned at the time of sale to effectuate a valid transfer of ownership.

Vehicles Exempt From Title Requirements

Certain vehicles are exempt from the requirement to obtain a certificate of title in Massachusetts. Per Massachusetts General Laws Chapter 90D § 2, vehicles exempt from title requirements include vehicles owned by the federal government, state government, or municipal government unless registered in the Commonwealth and vehicles registered in another state and not required to be titled in Massachusetts. Additionally, vehicles with a model year of 1960 or earlier are exempt from the title requirement under certain circumstances, as are vehicles defined as special mobile equipment or implements of husbandry.

Satisfying an Existing Lien

If a lien or security interest is recorded on the certificate of title, the lien must be satisfied and released before the seller can transfer clear title to the buyer. Under Massachusetts General Laws Chapter 90D § 24, the lienholder must execute a release of the security interest within three days after demand and in any event within ten days. The seller should contact the lienholder in advance to request either a written lien release or permission to remove the lien notation from the title.

The original certificate of title, bearing the lienholder's release signature, must be presented by the buyer when applying for the new title. If the title shows an existing lien that has not been released, the Registry of Motor Vehicles will not issue a new title until the lien is satisfied.

Vehicle Inspection Requirement

All motor vehicles driven on Massachusetts roads must undergo an annual safety and emissions inspection. Under Massachusetts Revised Code § 540 CMR 4.00, newly purchased vehicles must be inspected within seven days of registration. If the vehicle fails inspection within seven days of purchase and the estimated repair costs exceed 10% of the purchase price, the buyer may be entitled to a refund under the lemon law.

The seller is responsible for ensuring the vehicle passes inspection before the sale, or the buyer must obtain the inspection within seven days of purchase. The inspection must be performed by a licensed Massachusetts inspection station and will result in either a passing sticker or a failure notice.

Documents Required To Sell a Car in Massachusetts

Certificate of Title

The existing certificate of title is the legal document establishing ownership of the vehicle. The seller must complete the "Assignment of Title" section on the back of the title by filling in the date of sale, the purchase price, the buyer's name and address, the buyer's signature, the odometer reading, the seller's name and address, the seller's signature, and any other information required by the form. Both the seller and buyer must sign and handprint their names on the title.

The title must not be altered, and any corrections made to the title must be clear and legible. The seller's signature on the assignment section must match the seller's name exactly as it appears on the front of the title. The buyer's name must be recorded in the assignment area to complete the transfer; without this information, the title is considered "open" and will not be recognized by the Registry of Motor Vehicles for registration.

Bill of Sale

While not legally required by statute, a bill of sale is strongly recommended for all private vehicle sales in Massachusetts, as it provides clear documentary evidence of the transaction. The bill of sale should contain the full names and addresses of both the seller and buyer, the date of sale, a complete vehicle description including the vehicle identification number (VIN), make, model, year, and body style, the purchase price, a statement regarding vehicle condition, the odometer reading, and signatures of both parties dated at the time of sale.

Odometer Disclosure

The seller must record the actual odometer reading on the certificate of title at the time of transfer in the Assignment of Title section. The odometer reading must be stated in whole miles without tenths. The federal Odometer Law prohibits both sellers and dealers from tampering with, resetting, or misrepresenting the odometer.

How To Transfer a Car Title in Massachusetts

Step 1: Review the Title Before the Sale

The seller should examine the certificate of title to verify that the owner's name is correct and matches the seller's legal identification, that the title has not been altered or erased, and that any liens are clearly identified. If the title is lost, destroyed, or illegible, the seller should apply for a Duplicate Certificate of Title before proceeding with the sale.

Step 2: Ensure the Vehicle Passes Inspection

The seller should have the vehicle inspected at a licensed Massachusetts inspection station before the sale. The vehicle must pass both the safety and emissions inspections to receive a passing sticker. The inspection certificate is valid and may be transferred to the buyer if it remains valid when the buyer completes registration. If the vehicle fails inspection, repairs must be made before the vehicle can be registered.

Step 3: Satisfy Any Outstanding Liens

If a lien is recorded on the certificate of title, the seller must contact the lienholder to arrange satisfaction of the loan. The lienholder will provide a written release or will authorize the removal of the lien from the title. The seller should obtain documentation of lien release and keep it with the title to present to the buyer.

Step 4: Complete the Title Assignment

The seller assigns the certificate of title by completing the "Assignment of Title" section on the back of the title. The seller records the date of sale, the purchase price if space is provided, the buyer's full legal name and address, and the odometer reading. The seller signs the title and prints the seller's name, and the buyer also signs and prints the buyer's name on the title. Both parties should date the assignment.

Step 5: Prepare a Bill of Sale

Although not required by law, the seller should prepare a bill of sale documenting the transaction. The bill of sale should include all required information and should be signed by both the seller and buyer at the time of the transaction. Both parties should retain a copy.

Step 6: Deliver Documents to the Buyer

At the time of sale, the seller delivers to the buyer the following:

The original certificate of title, properly completed and signed in the "Assignment of Title" section. A copy of the bill of sale, if one was prepared. The original Massachusetts Safety Inspection Certificate or a written statement confirming that the vehicle has passed inspection within seven days.

The seller should retain copies of all documents for personal records.

Step 7: Buyer Applies for Registration and Title

The buyer must apply for a new certificate of title and registration within ten days of purchasing the vehicle, per Massachusetts General Laws Chapter 90D § 4. The buyer submits the Application for Registration and Title, the signed and assigned certificate of title from the seller, proof of motor vehicle liability insurance, the safety inspection certificate or proof of inspection, proof of payment of sales tax, and payment of all applicable fees to the Registry of Motor Vehicles or to a municipal registrar.

Title Transfer Fee Schedule in Massachusetts

The following title-related transfer fees are collected when the buyer applies for registration and title.

Registration fees vary depending on plate type and vehicle class. Additional fees may apply for special plates, vanity plates, or other vehicle classifications.

Sales Tax on Private Vehicle Sales

Massachusetts imposes a sales tax of 6.25% on the purchase price or fair market value of motor vehicles, whichever is greater. Under Massachusetts General Laws Chapter 64H, the buyer is responsible for paying sales tax at the time of registration with the Registry of Motor Vehicles. The tax is calculated on the purchase price recorded on the certificate of title or, if the purchase price is not recorded, on the fair market value as determined by the National Automobile Dealers Association (NADA) Used Car Guide or other valuation source.

The Registry of Motor Vehicles will not issue a new registration until proof of payment of sales tax is provided. Sales tax is payable by the twentieth day of the month following the month of purchase.

What To Do After Selling Your Car in Massachusetts

Cancel or Transfer License Plates

The seller may remove the license plates from the vehicle at the time of sale. Under Massachusetts law, the seller may transfer the plates to another vehicle they own or cancel the plates. If the plates are not transferred to another vehicle, the seller should notify the Registry of Motor Vehicles to either remove the plates from registration or retain them for future use.

Notify the Registry of Transfer

The seller may file a notice with the Registry of Motor Vehicles indicating that the vehicle has been sold or transferred. This notice helps protect the seller from liability for violations or unpaid excise taxes related to the vehicle after the sale has been completed. The seller may contact the RMV for procedures regarding transfer notification.

Cancel Insurance Coverage

Once the title has been transferred and the vehicle has been removed from the seller's registration, the seller should contact the insurance provider to cancel motor vehicle coverage. Massachusetts law does not require insurance coverage on vehicles no longer owned by the seller, and maintaining unnecessary insurance coverage may result in avoidable premium charges.

Retain Documentation

The seller should keep copies of the bill of sale, the signed title assignment, the inspection certificate, and any lien release documentation for personal records. These documents may be needed to prove the sale in the event of future disputes or liability issues.

Contact Information

Massachusetts Registry of Motor Vehicles
P.O. Box 55889, Boston, Massachusetts 02205-5889
Phone: (857) 368-8000
Official Website: Registry of Motor Vehicles