Transferring a car title in North Carolina involves a specific process handled by your local N.C. Division of Motor Vehicles (N.C. DMV) office. The core requirement is that both the seller and buyer must complete the assignment and warranty of title on the back of the current title certificate. The buyer then has 28 days to title and register the vehicle in their name to avoid penalties.
As the seller, your primary responsibility is to provide a properly assigned title and a completed Vehicle Damage Disclosure Statement. You should also complete a Notice of Release of Liability online or by mail to the N.C. DMV. This form legally separates you from the vehicle after the sale, relieving you of responsibility for any parking tickets or violations incurred by the new owner.
The buyer’s tasks are more extensive. They must take the following to an N.C. DMV license plate agency:
- The original, properly assigned title from the seller.
- A completed Title Application (MVR-1).
- A valid North Carolina driver’s license or ID.
- Proof of North Carolina vehicle insurance from a provider licensed to do business in the state.
- Payment for all required fees, including the highway use tax.
The highway use tax is a significant cost, calculated as 3% of the vehicle's retail value or the purchase price, whichever is higher. There are also title and registration fees. If there is a lien on the vehicle, the process involves the lienholder, and an electronic title may be issued until the loan is paid off.
| Step | Responsible Party | Key Document/Action | Fee (Approximate) | Timeframe |
|---|
| 1. Complete Title | Seller & Buyer | Sign the back of the title certificate | N/A | At the time of sale |
| 2. Damage Disclosure | Seller | Complete Vehicle Damage Disclosure Statement | N/A | At the time of sale |
| 3. Release of Liability | Seller | Submit Notice of Release of Liability to NCDMV | N/A | Within 28 days of sale |
| 4. Apply for New Title | Buyer | Submit MVR-1 form, title, ID, and insurance at DMV | $56 title fee | Within 28 days of sale |
| 5. Pay Highway Use Tax | Buyer | 3% of vehicle value or purchase price | Varies by vehicle | At title application |
| 6. Pay Registration | Buyer | Annual vehicle registration fee | $38.75 (standard passenger vehicle) | At title application |
