Selling a vehicle in North Carolina might seem straightforward, but there are important legal steps sellers must follow to protect themselves. One critical aspect is how you handle the certificate of title. Here’s what you need to know before signing—and why a notary matters.
1. Never Sign the Title Ahead of Time
Many sellers make the mistake of signing the title before the sale is finalized. In North Carolina, signing the certificate of title in advance can expose you to serious risk. If someone takes the signed title, they could legally transfer ownership and register the vehicle in their name—potentially leaving you liable for fines, accidents, or even criminal activity involving the car.
2. North Carolina Requires a Notary
North Carolina law mandates that the seller’s signature on the title must be notarized when transferring ownership. This means:
You must sign the title in the presence of a notary public.
The notary will verify your identity and witness the signature.
Without notarization, the title is not legally valid for transfer, which could delay or invalidate the sale.
3. Verify Buyer Information
Before meeting with a buyer, ensure you:
Have a valid government-issued ID for notarization.
Confirm the buyer’s details (name, address) are correctly listed on the title.
Avoid pre-signing the title or leaving any blanks.
4. Complete the Required Forms
In addition to the notarized title, sellers in North Carolina must provide:
A Bill of Sale (recommended for record-keeping).
A Release of Liability/Notice of Sale form to the NC DMV, which protects you from future liability.
5. Protect Yourself Legally
Signing a title without notarization or before the sale can lead to complications, including:
Liability for accidents or violations if the buyer registers the car in your name.
Fraud or identity theft if the title is misused.
Difficulty proving the sale in legal disputes.