What is a North Carolina Car Bill of Sale?

A North Carolina car bill of sale aims to provide legal documentation for a car transfer. The document identifies both parties and includes the vehicle’s make, model, and year of production. It has other essential details, such as previous damage and associated costs. Once both parties validate the transaction through signing, the document becomes a permanent sales record. Therefore, each person involved should safely store a copy of the bill of sale.

What are the Buyer’s Tasks?

What are the Seller’s Tasks?

Selling a vehicle is often time-consuming as the owner must complete several tasks before finalizing the sale. These steps become essential to ensure their protection and the fluidity of the transaction. Furthermore, sellers must research the current market of their vehicle, prepare it for the transfer, advertise it, negotiate with buyers, and complete the required paperwork.

Once they find a buyer and discuss the details of the sale, they must take care of the following responsibilities:

1. Sign the title with the buyer and include the purchase price.
2. Complete a vehicle bill of sale with the buyer.
3. Provide the buyer with documentation relevant to the car, such as the odometer disclosure statement (Form MVR-180), maintenance records, and damage disclosure statement (MVR-181).
4. Remove the license plates from the vehicle and return them to the NCDMV. Sellers cannot keep the plates or give them to the buyer.
5. Notify the NCDMV of the sale and cancel liability insurance for the car.

How to Register a Car in North Carolina (4 Steps)

New residents of North Carolina must obtain an in-state driver’s license and transfer their title and registration within sixty (60) days of establishing permanent residence. Vehicle inspections are necessary for renewals but are usually unnecessary when registering a vehicle for the first time in the state. Individuals driving an unregistered or untitled car may face legal citations and fines.

Step 1 – Insurance

According to G.S. 20-309, all vehicles registered in North Carolina must obtain liability insurance through an in-state licensed company. This insurance must include coverage of $30,000 for the bodily injury of one (1) person, $60,000 for the bodily injury of two (2) or more people, and $25,000 for property damage per incident. When selling a vehicle, owners should only cancel their insurance once they have returned their license plates to the NCDMV.

Step 2 – Safety & Emissions Inspection

Vehicle owners must carry out safety inspections before registering or renewing. These assessments must occur within ninety (90) days of the vehicle’s renewal. If the county requires emissions inspections, the individual must have a technician complete this task during the appointment. Failure to meet these regulations by the due date will result in the state blocking the vehicle’s registration. As a result, law enforcement can take action by issuing tickets or other penalties.

Step 3 – Title & Registration

In North Carolina, all vehicles in active use must have a proper title and registration. License plate agencies handle the documentation process and have specific requirements for residents to follow. When registering, owners must present the vehicle title (or registration card), a North Carolina driver’s license, a title application (Form MVR-1), odometer disclosure (Form MVR-180), proof of vehicle insurance, a valid inspection, and pay the required fees.

Vehicle owners must present their driver’s licenses and pay required title fees and property taxes to the NCDMV to obtain a title. The state only requires a bill of sale when the buyer purchases from a dealer. If more than one (1) person owns the car, each owner must also provide their photo identification and sign the necessary forms in front of a notary. Individuals who want another person (i.e., an agent) to handle the title and registration process must sign a power of attorney and give the agent a black-and-white copy of their driver’s license. New residents or non-residents who bought a vehicle in the state must obtain a North Carolina title before acquiring a registration.