Title Transfers

The Basics

The North Carolina Division of Motor Vehicles (DMV) has a Titling Department that records vehicle ownership and liens against vehicles, and also prints titles. New titles are issued when titles are lost, or when vehicle ownership or lienholder information is changed.

Each time a vehicle is sold, traded, or transferred to another owner (including when you pay off a loan or lease), a title transfer must take place. When you pay off your auto loan or lease, you become the owner of the vehicle and the previous owner or lienholder must release the title to you.

In order to hold a vehicle title in North Carolina, you must first have a NC driver's license.

Reassigning the title is as simple as filling out section A on the reverse side of the certificate of title. The previous owner or lienholder must do this in the presence of a notary, and in order for it to be valid, give the reassigned title to you at the time the vehicle is delivered. If you, as the new owner, don't receive or take possession of the vehicle, the title transfer is invalid. When you register the vehicle, you will then apply for a new title.

When a brand-new vehicle is being registered and titled, the Manufacturer's Certificate of Origin is used to show proof of ownership. Then a title is issued to the owner. If you do not receive your title, you can go to a DMV vehicle and license plate renewal office and apply for a duplicate title.

If the title was being held by a recorded lienholder and you do not receive it upon transfer of ownership, you can go to a vehicle and license plate renewal office and request a title transfer yourself. Bring with you proof of ownership, an odometer reading, and proof of insurance, and pay the fee for a title transfer.

You can also apply for a quick, or instant, title, at the Raleigh and Charlotte offices. The fee for this expedited title is $75.

Penalties for Late Title Transfers

When you buy a vehicle that has already been registered in North Carolina, you must apply to have the title transferred within 28 days from the date of delivery or notary date, whichever is later. If you fail to do this, you are subjected to a late penalty fee of $15. If you apply for a title transfer through the mail, it must be postmarked within 28 days. Dealers and repossessors are not exempt from the penalty.

The penalty fee is only charged for North Carolina title transfers and duplicate title transfers. It is not due if the late transfer is from single to joint ownership, joint to single ownership, joint to joint ownership, or if one owner remains the same, or in transfers upon bankruptcy, inheritance, or salvage. The penalty does not apply to dealers or repossessers who are clearing titles in their names.

How to Transfer a Title in the Event of a Death

If you are the surviving spouse, you simply need to furnish the title to the DMV in order to have the vehicle transferred to you.

With an Estate Administrator

If there is an administrator, he or she must submit a certified copy of the letters of administration/executrix with a clerk of court seal. Next, assign the title to the purchaser on the space on the back of the title, and have it notarized. You must also complete a title application, declaring all liens, and have it notarized. Also submit a Damage Disclosure Statement to the DMV, and if the vehicle is less than 10 years old, an odometer statement signed by the buyer and seller. There is a $40 title fee as well as a 3% highway use tax if purchased from an estate. If the car was a gift, no tax is due.

No Administrator

You must furnish an affidavit of collection for personal property, a release by heirs, or a widow or widower's allotment. If transferring to someone other than the surviving spouse, the title should be assigned to the person whose name appears in the court papers. This is done on the back of the title itself. Next, supply the DMV with a completed, notarized title application, declaring all liens.

Also submit a Damage Disclosure Statement to the DMV, and if the vehicle is less than 10 years old, an odometer statement signed by the buyer and seller. There is a $40 title fee as well as a 3% highway use tax if purchased from an estate. If the car was a gift, no tax is due.

No highway use tax is due if the vehicle was transferred through a will or intestacy.

Substitute Titles and Corrections

Titles are generally changed or replaced when there is a significant change in the vehicle, there is an error (or errors) on the title, or the owner's name changes, such as when somebody gets married.

To apply for a substitute title, fill out forms MVR-5 and MVR-28. You should also bring with you the North Carolina title, an odometer reading (for vehicles 10 years and older), and proof of liability insurance. Corrected titles (for name changes and so forth) will not require a completed MVR-28.

For complete details, visit the DMV's official Web site.

Adding Someone to a Title

If no sale was made and you wish to add someone (such as your spouse) to the title, you must reassign it. Complete form MVR-5 and have it notarized. Then submit it along with a completed Affidavit of Facts to the DMV.

Gift Vehicles

If you receive a vehicle as a gift and want to title and register it in your name, you must pay highway and use tax. The exceptions to this rule are vehicles given as gifts between spouses or between parents and children.

Transferring License Plates

License plates reside with the owner, not the vehicle. Therefore, if you purchase a different vehicle and sell, trade, or junk your current vehicle, you can keep the same license plate if:

• Ownership is in the same name

• Insurance coverage has been continuous

• Vehicles are in the same category (example: both are cars)