Although a bill of sale in North Carolina is not a requirement when titling or registering vehicles purchased from individual sellers or private parties, the document is a requirement when titling and registering vehicles purchased from a licensed car dealership. For this reason, car buyers must obtain a bill of sale contract before leaving the car dealership and heading into a vehicle registration office to title and register the newly-acquired vehicle. Since a bill of sale form displays the purchase price of a vehicle, there are many benefits to using a bill of sale for car purchases, even if the NCDMV does not require it.
What is a North Carolina bill of sale?
A standard bill of sale form displays the purchase price of a vehicle, showing that a sale took place and on what date. Many states require a DMV bill of sale document when titling and registering a vehicle in the state, but the NCDMV only requires this document when titling an automobile that was purchased from a dealership. It is not a requirement to submit a bill of sale contract when registering vehicles purchased from private sellers. However, there are many benefits to completing a bill of sale in North Carolina, even if the NCDMV does not require it during the vehicle registration process. The benefits of using a bill of sale for vehicle purchases include the following:
- The purchaser must acknowledge that he or she is buying the vehicle in “as is” condition
- The seller must warrant that the vehicle is free of any encumbrances or liens
- The buyer and seller must both acknowledge that the vehicle is in its existing condition
Since buyers and sellers must both sign the NC bills of sale agreement before finalizing the transaction and leaving the premises, a bill of sale document helps to protect buyers from any future issues that may arise with the vehicle. Additionally, a bill of sale protects sellers from being held financially responsible for any vehicle-related repairs that may be required in the future. As such, car buyers and sellers can protect themselves from potential issues such as these by getting a comprehensive bill of sale packet online here.
North Carolina Vehicle Bill of Sale Requirements
Motorists must submit a new or used car bill of sale when titling and registering a dealership-purchased vehicle with the NCDMV, as a bill of sale agreement displays the purchase price of an automobile. Drivers must submit bill of sale forms even if they are registering vehicles purchased from out-of-state dealerships. In addition to submitting a North Carolina bills of sale contract when titling and registering a vehicle in the state, car buyers must submit the following documents after purchasing a vehicle from a dealership:
- The vehicle’s current title (with appropriate notarization)
- A Title Application (MVR-1)
- An Odometer Disclosure Statement (MVR-180)
- A Damage Disclosure Statement (MVR-181), if applicable
While the NCDMV does not require a bill of sale document when registering vehicles acquired from private parties, NC bills of sale agreements can help to simplify the process of buying or selling a vehicle. Since a bill of sale form acts as a receipt of the transaction, it can help to protect sellers if they sell a vehicle to another driver, but the buyer fails to register or insure the vehicle. Since a new or used car bill of sale shows that a transaction took place, it can help to protect buyers and sellers if any future issues arise. Additionally, sellers can use a vehicle bill of sale contract for tax purposes as well. If motorists wish to obtain a bill of sale prior to buying or selling a vehicle, they may get a full bill of sale package online here.
Completing a Bill of Sale Form in North Carolina
The NCDMV does not provide bill of sale documents, but motorists may obtain a bill of sale onlinehere before they buy or sell a vehicle or motorcycle in a private transaction. Furthermore, vehicle owners must obtain a car bill of sale from the dealer if they purchase a vehicle from a licensed dealer, as motorists cannot register a dealership-purchased vehicle without submitting a DMV bill of sale document as proof of the vehicle’s purchase price. If a DMV bill of sale contract is not a registration requirement, motorists may create their own North Carolina bill of sale template prior to buying or selling a vehicle in a private transaction. However, bill of sale templates must include the following information:
- The name, address and signatures of the car buyer and seller(s)
- The date of the transaction
- The vehicle’s sale price
- The vehicle’s odometer reading
- The car’s make, model, year and vehicle identification number (VIN)
Whether drivers need to obtain a motorcycle bill of sale or a used vehicle bill of sale, they may create their own template, or they may obtain a comprehensive form online. If motorists wish to get an NC bill of sale form online, they may obtain a complete bill of sale package online here.