How to Transfer a Car Title to a Family Member in North Carolina

Transferring a car title to a family member in North Carolina is simple.

Many people assume that North Carolina title transfers are complex and arduous tasks. However, with some good preparation, it can be a relatively simple and painless task.

If you’re here trying to learn how to transfer a car title in North Carolina, we have all the information you need. We’ll start by taking you through the process step by step, and then discuss aspects like the required documentation and the fees that you’ll need to pay.

What is a Vehicle Title?

Simply put, a vehicle title is just an official document that states clearly who is the legal owner of a specific vehicle. It lists, in detail, important information like the car’s VIN number, and the details of the owner or owners of the vehicle.

Every time the car changes owners, the title gets updated, ensuring that there’s an official record of who the car belongs to. Not only does this help authorities to restore stolen cars to their rightful owners, but it also makes it easier to prevent resale of stolen cars. 

How to Transfer Car Ownership to Family in North Carolina: Step-By-Step

Knowing how to transfer a car title to a family member in North Carolina may turn out to be an essential piece of knowledge. Many people think that it’s much harder than it really is, so let’s take a closer look. 

Transferring a Title at the DMV

As long as you do due diligence before the time, transferring a car title at a North Carolina DMV is easy. Here’s how:

  1. Gather all the required documents, ensuring that the appropriate people have completed the title transfer documents, and signed where necessary. A comprehensive list of the required documents is available below.
  2. Decide if you want to wait for a title, or get an instant title. If you decide to get an instant title, you should tell the clerk at the start of the process.
  3. Submit all the paperwork at your nearest DMV and pay the registration fees.
  4. Wait for the DMV to complete the process and give you a title. It can take a few days or months under normal circumstances.

Please note that it can vary significantly based on your particular situation. In some scenarios, the DMV may request additional documentation, which you should provide as promptly as possible.

Transferring Ownership of a Titleless Vehicle

What do you do if you have a titleless vehicle and you want to give it to a family member? Well, you should apply for a replacement or duplicate title before transferring the title to your family member. This can take around 15 days on average, so it won’t disrupt your schedule too much.

If you can’t get a duplicate or replacement title, you should contact your DMV and find out what their suggested next steps are. Unfortunately, there’s a whole list of reasons why you can’t transfer an untitled vehicle, so don’t try to take any steps without input from the DMV.

Family Title Transfer in North Carolina: Required Documentation

When transferring a vehicle title in North Carolina, you will require multiple different documents to complete the process successfully. These include the following:

  • A valid North Carolina driver’s license – The recipient of the vehicle will need to provide a copy of their valid NC license before they can receive the vehicle title.
  • Vehicle insurance for North Carolina – North Carolina requires all vehicle owners to have valid vehicle insurance. 
  • Proof of ownership – You will need to bring in the vehicle’s title with the signatures of all the current owners.
  • Odometer reading – Title applications for vehicles not older than 10 years require you to submit an odometer reading.  
  • A notarized vehicle title application – You will need to complete and submit the vehicle title application form in order for the recipient to receive a new title.
  • Proof of identity – You must provide proof of identity, through a copy of your photographic state ID or passport. 
  • A lien release – If the vehicle is under a lien, you will also need to submit a lien release form.

Family Title Transfer in North Carolina: Related Fees

As you may have expected, North Carolina title transfer has several related fees.

The first is the standard transfer fee of $56. If you want instant processing on your title application, it will be the $56 plus an additional $105.75. 

You will also need to pay a highway use tax (HUT) to the value of 3% of the car’s sales price. There may be some exceptions to this, if you’re gifting the car to a family member. 

You will need to fill out a Highway Use Tax Exemption Certification form to avoid paying this tax when gifting a vehicle to someone. This doesn’t count for siblings, step-siblings, cousins, nephews, or nieces.

Real-Life Examples of Family Title Transfer in North Carolina

While car title transfers are one of those things that many people are vaguely cognizant of, it can be difficult to imagine a situation where you need to do a transfer. Here are a few common examples.

Transferring a Car Title From A Deceased Owner in North Carolina

When a family member passes away and leaves their vehicle to you, it will be necessary to transfer the vehicle title into your name. This is one situation where extra paperwork and steps may be required.

You will need a death certificate for the previous owner of the vehicle, and a copy of the will. The probate lawyer or executor should also give you letters of administration, letters of testamentary, or letters of executor. 

Finally, you will need the release of heirs form (MVR-317) and it should be both signed and notarized.  Once you have all the paperwork, simply submit it to the DMV and pay the requisite fees.

Transferring Ownership of a Vehicle to a Son or Daughter

Another common occurrence is that parents may give a car to their children (or one family member to another). In these cases, the basic process for title transfer is the same as usual. 

However, you will need to fill out a Highway Use Tax Exemption Certification form if you want to avoid either yourself or your family member paying the 3% HUT on the vehicle.

Final Thoughts

You may have come here trying to understand how to transfer a car title to a family member in North Carolina, and thinking it would be immensely complex. However, we’re sure you’ve come to see that the process is reasonably straightforward and painless.

We hope you feel encouraged to complete any vehicle title transfers that you need to do, since it can make all the difference to the driver of the car. For instance, if you were to pass away, they’d already have title, and they’d also need full title if they wanted to take a title loan in North Carolina. Don’t wait, ensure that your vehicle titles are up to date. 

Family Title Transfer in North Carolina: Frequently Asked Questions

What is required to transfer title in North Carolina?

In North Carolina, you need to present several things in order to transfer a title. These include: a signed vehicle title, a completed Title Application, proof of identity, a notarized bill of sale, an odometer disclosure for vehicles less than 10 years old, and a notarized lien release if there are liens on the title.

How much does it cost to transfer a car title in NC?

There are two, possibly three, fees involved with a car title transfer in North Carolina. The transfer fee is $56, and the highway-use tax is equivalent to 3% of the vehicle’s value. You may also need to pay a lien recording fee if the car is under a lien.

Do both parties have to be present to notarize a title in North Carolina?

No, both parties do not have to be present for a notarization in North Carolina. It is possible for the buyer to fill out their portion of the application later on. However, the seller does need to appear before the notary with an appropriate and valid form of identification to get the form notarized.  

What paperwork is required when selling a car privately in NC?

When you sell a car privately in North Carolina, you require several different forms and types of documentation. If there is a lien on the vehicle, you will require a lien release. Other types of documentation include an Odometer Disclosure Statement, the vehicle’s original or replacement title, and a Notarized Title Application form.

What do I do if my car title was signed but not transferred?

While it’s an uncommon occurrence, if you sign over title to a vehicle’s new owner, but they don’t complete the transfer, it is a legal offence that can lead to fines and penalties. You should contact the local DMV immediately and appraise them of the situation. Failure to do so can result in your paying taxes and annual fees for a car that is no longer in your possession.