North Carolina Vehicle Bill of Sale

Is a bill of sale required to sell a car in North Carolina?

North Carolina does not require a separate bill of sale form for a private-party vehicle transfer, but one is strongly recommended. The primary transfer document is the certificate of title, which must be properly assigned and notarized. The North Carolina DMV provides no official bill of sale form for private transactions, but will accept any written document that captures the essential details of the sale. A bill of sale serves as an independent record of the agreed sale price, vehicle condition, and date of transfer — information that becomes important if the buyer and seller later dispute what was agreed.

The buyer must apply for a new title through an NCDMV license plate agency within 28 days of the sale and pay the 3% Highway Use Tax at that time.

Does the title assignment need to be notarized?

Yes — and this is the most important procedural requirement in North Carolina. Under N.C.G.S. §20-72, the seller's signature on the title assignment must be acknowledged before a notary public for the title transfer to be valid. The bill of sale itself does not require notarization, but the seller's signature on the back of the certificate of title does. If the seller signs the title without a notary present, the signed title is defective and the buyer may not be able to complete the title transfer.

Both the buyer and seller should meet at a time and place where the seller can sign in front of a notary. Many banks, credit unions, and UPS Store locations offer free or low-cost notary services.

What is the Highway Use Tax?

North Carolina does not charge a traditional sales tax on vehicle purchases. Instead, the state imposes a 3% Highway Use Tax on the purchase price at the time of title transfer (N.C.G.S. §105-187.3). The tax is paid by the buyer to the DMV license plate agency when applying for a new title and registration. For most private-party transactions, the tax is calculated on the greater of the purchase price or the retail value listed in a national pricing guide.

The 3% rate is capped at $2,000 for vehicles received as gifts between immediate family members (spouse, parent, child, grandparent, grandchild, sibling, or in-law). An $8 minimum applies in all cases. Commercial vehicles and trailers follow different rate schedules.

What information does a North Carolina vehicle bill of sale need to include?

A complete North Carolina vehicle bill of sale should include the full legal names and addresses of both the buyer and seller, the date of sale, the agreed purchase price, and the vehicle's year, make, model, body style, color, and Vehicle Identification Number (VIN). The odometer reading must be disclosed — North Carolina requires odometer disclosure consistent with federal law (49 CFR §580.5) for vehicles less than 20 model years old. The as-is nature of the sale should also be stated.

What should the seller do after the sale?

The seller should remove their license plates from the vehicle. North Carolina plates belong to the owner, not the vehicle. The seller can transfer the plates to another vehicle or return them to a license plate agency. The seller should retain a copy of the signed bill of sale and the assigned title as proof of the transfer. North Carolina does not have a formal seller notification form, but the buyer must transfer the title within 28 days of the sale.

What if the vehicle has multiple owners?

If the vehicle is titled to more than one person, all owners on the title must sign the bill of sale. Use the "Add a co-seller" option on the form to add the second seller's name and address. Both sellers' names and signature lines will appear on the document. For electronic signing, each co-owner can sign on the same device in sequence, or the document can be passed from one device to another via QR code or shared link. Both buyers can likewise be named on the bill of sale using the "Add a co-buyer" option.