What a bill of sale is and why you need one in North Carolina
A bill of sale is a written record that you and the other person sign to show that a car has changed hands. In North Carolina, it documents who owned the vehicle, who owns it now, the sale price, and the date of the transaction. The state does not require a bill of sale to transfer a title at the DMV, but having one protects both the buyer and seller by creating proof of the sale.
Without a bill of sale, disputes can arise later. A seller might be held responsible for parking tickets or accidents that happen after they no longer own the car. A buyer might have trouble proving they purchased the vehicle legally. A signed bill of sale settles these questions by showing exactly when ownership changed hands.
North Carolina does not have a single official bill of sale form that the state requires you to use. You can write one yourself, use a template, or purchase a pre-printed form from an office supply store or online. What matters is that the document includes the key information and is signed by both parties.
Key Takeaways
- A bill of sale records the sale of a car between two people and protects both the buyer and seller, even though North Carolina does not legally require one.
- The document must include the vehicle identification number (VIN), the sale price, the date, and the signatures of both the buyer and seller.
- You can create a bill of sale using a template, a pre-printed form, or by writing one yourself, as long as it contains all required information.
- The buyer should keep the bill of sale when registering the vehicle with the North Carolina DMV, and the seller should keep a copy for their records.
Information that must go on the bill of sale
The bill of sale should clearly identify both the vehicle and the people involved in the sale. Start with the vehicle identification number (VIN), which appears on the driver's side of the dashboard and on the title. Include the year, make, model, and color of the car. Write down the odometer reading at the time of sale.
Next, list the full name, address, and phone number of the seller and the buyer. Write the sale price in both numbers and words to avoid confusion—for example, "$5,000 (five thousand dollars)." Include the date of the sale. If the car is being sold as-is, you can add that phrase to the document. Both the buyer and seller must sign and date the bill of sale in front of each other or, in some cases, in front of a notary public.
Some people add a line stating that the seller is not responsible for the vehicle after the sale date, or that the buyer assumes all liability. This extra protection is optional but useful, especially if the car has mechanical issues or if there is a delay before the buyer registers it.
Where to find a bill of sale template
The North Carolina DMV website does not provide an official bill of sale form, but templates are widely available. You can search online for "North Carolina bill of sale template" and find free downloadable versions from legal document websites. Office supply stores like Staples or Office Depot sell pre-printed bill of sale pads that work for North Carolina sales.
If you prefer to write your own, the format does not have to be fancy. A straightforward letter that includes all the required information and is signed by both parties will work. Some people type it, others write it by hand. What matters is that the information is clear and both signatures are present.
Before you use any template, check that it does not include language specific to another state. A bill of sale written for use in South Carolina or Virginia might have different wording or requirements. Reading through the template first takes only a few minutes and prevents problems later.
How to complete the bill of sale correctly
Fill in all blanks with accurate information. Use the VIN from the title or the vehicle itself, not from memory. Write out the full names of both parties exactly as they appear on their driver's licenses. If the seller's name on the title does not match the name they are using now, note both versions on the bill of sale.
Write the sale price clearly. If no money is changing hands—for example, if the car is a gift—write "gift" or "$0" in the price field. Some people leave the price blank if they want to keep it private, but this can cause confusion at the DMV, so it is better to fill it in.
Have both parties sign the document in blue or black ink. Signing in pen makes it harder to alter the document later. If possible, have the signatures witnessed by a third party or notarized, though this is not required in North Carolina. Keep the original signed copy and make at least one photocopy for your records.
What happens with the bill of sale after the sale
The buyer needs the bill of sale when registering the vehicle with the North Carolina DMV. Bring it along with the title, proof of insurance, and a completed process for Certificate of Title (Form MVR-180). The bill of sale shows the DMV that the buyer purchased the car legally and when the transfer of ownership occurred.
The seller should keep a copy of the signed bill of sale for at least three to five years. If a parking ticket, toll violation, or accident report arrives after the sale, the seller can use the bill of sale to prove they no longer owned the vehicle on that date. This document can protect you from liability.
If the buyer does not register the vehicle right away, the seller remains the registered owner in the DMV system until the title is transferred. Having a signed bill of sale protects the seller during this waiting period by showing that they sold the car on a specific date.
When a notary is helpful
North Carolina does not require a notary to witness a bill of sale, but having one sign the document adds an extra layer of protection. A notary is a person authorized by the state to witness signatures and verify that the people signing are who they say they are. Many banks, credit unions, and UPS stores offer notary services for a small fee, usually between $5 and $15.
A notarized bill of sale is especially useful if the sale price is high, if the buyer and seller do not know each other well, or if there is any concern that the document might be challenged later. The notary's stamp and signature make it harder for anyone to claim the bill of sale was forged or signed under pressure.
Common mistakes to avoid
Do not leave blanks on the bill of sale. If a field does not explore—for example, if there are no liens on the vehicle—write "none" or "N/A" rather than leaving it empty. Blank spaces can be filled in later by someone else, which defeats the purpose of having a signed record.
Do not use pencil or erasable ink. Use pen so that the document cannot be altered after both parties have signed. If you make a mistake while filling it out, cross it out neatly, write the correction above it, and have both parties initial the change.
Do not assume the buyer will register the vehicle quickly. The seller should keep a copy of the bill of sale even after handing over the title, because the DMV records may not update for several weeks. If a problem arises during that gap, the bill of sale proves when the sale took place.
Frequently Asked Questions
Do I have to notarize a bill of sale in North Carolina?
No, notarization is not required. A bill of sale signed by both the buyer and seller is valid without a notary. However, having it notarized adds extra proof that the signatures are genuine and can be helpful if questions arise later.
What if I lose the bill of sale after the sale?
If you are the buyer, contact the seller and ask for a copy. If you are the seller and the buyer has lost their copy, you can provide one from your records. If neither of you has a copy, you can create a new one and both sign it, noting the original sale date. This is not ideal but is better than having no record at all.
Can I sell a car without a bill of sale in North Carolina?
Yes, North Carolina does not legally require a bill of sale to transfer a title. However, not having one leaves both the buyer and seller unprotected. The seller cannot prove when they stopped owning the car, and the buyer has no written record of the purchase. It is strongly recommended to use one even though it is not required.
Should the bill of sale include the VIN from the title or the car itself?
Use the VIN from the title, as that is the official record. The VIN on the vehicle itself should match, but the title is the legal document. If the two do not match, do not complete the sale until the discrepancy is resolved, as it may indicate a stolen vehicle or title problem.
What if the seller's name on the title does not match their current legal name?
Write both names on the bill of sale and have the seller sign using their current legal name. Include a note explaining the name change. The buyer should bring this to the DMV along with the title so the DMV can update their records correctly.