North Carolina: Private-Party Vehicle Title Transfer Requirements

Requirements one by one

The title assignment must be notarized

North Carolina is a notary state, and this is the rule that surprises people.
Under N.C. Gen. Stat. § 20-72(b), to assign a title the owner must — "either in
the presence of a person authorized to administer oaths" or by approved
electronic notarization — "execute an assignment and warranty of title on the
reverse of the certificate of title," naming the transferee. And it is
dispositive: "no title to any motor vehicle shall pass or vest until such
assignment is executed and the motor vehicle delivered to the transferee." The
Division of Motor Vehicles also requires the Title Application (MVR-1) itself to
be notarized, and if there are co-owners, all signatures must be notarized. Do
not sign the title until you are in front of a notary.

The seller must "deliver the certificate of title duly assigned ... to the
transferee at the time of delivering the vehicle." If there is a loan, the seller
delivers the title to the lienholder, who forwards it with the buyer's
application.

The buyer applies within 28 days

Section 20-73(a) requires the buyer to "apply to the Division for a new
certificate of title" and to submit the application "within 28 days after the
vehicle is transferred." The buyer is responsible for meeting the deadline even
if someone else agreed to file. The DMV's document list for a purchase from an
individual is the notarized title, a lien release if a lien is shown, the
notarized MVR-1, and — for a vehicle less than 10 years old — an Odometer
Disclosure (MVR-180) and a Damage Disclosure (MVR-181).

The tax is a 3% Highway Use Tax on the DMV's value

Instead of sales tax, North Carolina charges a one-time Highway Use Tax when a
title is issued. Section 105-187.3 sets the rate at "three percent (3%)." For a
private sale — a seller "who is not a retailer" — the tax base is "the market
value of the vehicle" from the DMV's schedule of values, not your negotiated
price, so a low bill of sale does not lower the tax.

Inspection and insurance gate the plate

A used vehicle bought in a private sale "must be inspected before it is
registered unless it has received a passing inspection within the previous 12
months," and North Carolina's annual safety inspection is statewide. Nineteen
counties add an emissions inspection. Separately, § 20-309(a) makes liability
insurance a prerequisite to registration: "No motor vehicle shall be registered
in this State unless the owner at the time of registration provides proof of
financial responsibility," maintained "continuously throughout the period of
registration."

What trips people up

• Signing the title before you reach a notary. The assignment must be
  executed before a notary (or by approved electronic notarization), and the
  MVR-1 must be notarized too. An un-notarized signature does not transfer
  title.
• The plates come off — they belong to the owner. Under § 20-72(a) the seller
  removes the plates; they go to the DMV unless the seller keeps them to
  move to another vehicle under § 20-64 (a reassignment application within 20
  days). The buyer registers for their own plate.
• The tax is on the DMV's value, not your price. The 3% Highway Use Tax uses
  the schedule market value for private sales, so a below-market bill of sale
  will not reduce it.
• No inspection, no plate. A private-sale vehicle needs a current North
  Carolina inspection (within the prior 12 months) before it can be registered,
  and registration is blocked until it passes.

Common questions

Does North Carolina really require the title to be notarized?
Yes. Section 20-72(b) requires the assignment to be executed before a notary (or
by approved electronic notarization), and the DMV requires the MVR-1 to be
notarized as well.

How long does the buyer have to title the vehicle?
28 days from the transfer (§ 20-73(a)). Missing it brings a $20 civil penalty and
a Class 2 misdemeanor (§ 20-73(c)).

Is a bill of sale required for a private sale?
No. The notarized assigned title and the MVR-1 are the instrument. The DMV lists
a bill of sale only for a dealer purchase.

What is the tax and how is it figured?
A one-time 3% Highway Use Tax. For a private sale it is based on the DMV's
schedule market value, not the sale price.

Statutes and sources

• N.C. Gen. Stat. § 20-72 — plate removal on transfer, the notarized
  assignment and warranty of title, and when title passes.
  https://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_20/GS_20-72.pdf (accessed 2026-07-23)
• N.C. Gen. Stat. § 20-73 — the buyer's 28-day title application deadline and
  the $20 civil penalty plus Class 2 misdemeanor.
  https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_20/GS_20-73.pdf (accessed 2026-07-23)
• N.C. Gen. Stat. § 105-187.3 — the 3% Highway Use Tax rate and its
  market-value base for a non-retailer sale.
  https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_105/GS_105-187.3.pdf (accessed 2026-07-23)
• N.C. Gen. Stat. § 20-309 — liability insurance as a prerequisite to
  registration.
  https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_20/GS_20-309.pdf (accessed 2026-07-23)
• N.C. Division of Motor Vehicles — Title Documents and Forms — the
  individual-purchase document list, MVR-180/MVR-181, and the notarization
  footnotes.
  https://www.ncdot.gov/dmv/title-registration/vehicle/Pages/documents-forms.aspx (accessed 2026-07-23)
• N.C. Division of Motor Vehicles — Emissions & Safety Inspections — the
  statewide safety inspection, the 19 emissions counties, and the private-sale
  12-month inspection carryover.
  https://www.ncdot.gov/dmv/title-registration/emissions-safety/Pages/default.aspx (accessed 2026-07-23)