Ensure the legality of your transaction by using a North Carolina bill of sale. This official document records crucial details about your purchase, including the seller's and buyer's information, the purchased goods, and the price.
While generally not required for purchases in North Carolina, having a bill of sale is highly recommended for both parties’ personal safety and protection.
This important document is key to preventing legal disputes and safeguarding your interests in any transaction.
North Carolina Bill of Sale Parties
The parties involved in a bill of sale are the seller, who owns a specific good (e.g., motor vehicle, boat, etc.), and the buyer, who intends to purchase it.
Seller
A seller can either be a professional goods dealer or a private individual looking to sell their personal property.
Buyer
A buyer can be an individual or a legal entity, and one or more buyers can be involved in a transaction.
Buyer and Seller Disclosure
It is essential to include all relevant disclosures in the bill of sale to ensure that both parties have complete information about the purchase.
For instance, when purchasing a motor vehicle, the seller uses the odometer disclosure statement to provide accurate information about the number of kilometers that the vehicle has been driven.
Additionally, an "as-is" clause is often included in a bill of sale for goods with defects or sold without guarantees. It is recommended that buyers carefully inspect the item being sold before agreeing to the transaction if such a clause is included in the bill of sale.
Trust in the security and reliability of a bill of sale to ease a successful transaction and protect both parties' interests.
North Carolina Bill of Sale Description of Goods
When purchasing and recording a transaction, it is imperative to familiarize yourself with the characteristics of the goods you intend to buy and provide an accurate description of them. For example, when purchasing a car, the description should include the following:
Mandatory Information
Make
Body type
Vehicle Identification Number (VIN)
Date of manufacture
Alongside the goods’ description, it is equally important to outline the condition in which they are being sold, such as whether they are new with a warranty, used without a warranty, or have certain damages.
Providing an accurate description of the goods and their condition guarantees a safe and reliable purchase. Take the necessary steps to ensure a successful transaction by including all relevant details in your bill of sale.
North Carolina Bill of Sale Purchase Price
This section outlines the three most dominant payment methods: payment, trade, and gift.
#1. Payment
Payment is the most common way of purchasing goods by providing money as a monetary equivalent for the goods.
#2. Trade
In the case of trade, participants exchange one good for another, and additional payment may be made if the exchanged good has a lower value than the other.
#3. Gift
While gift-giving is less common in transactions, it generally suggests a close relationship between the parties involved, as goods are given without requiring an appropriate monetary value in return.
North Carolina Bill of Sale for Motor Vehicles (Cars) Requirements
When purchasing a motor vehicle, it is important to formally document the transaction to ensure a smooth and legally binding exchange.
To do so, it is recommended to create a bill of sale that clearly identifies the following information:
Mandatory Information
Parties involved in the sale
The vehicle being a sold
Agreed-upon price and the method of payment
Signatures of both parties
Remember to check the official website of the North Carolina Department of Motor Vehicles (DMV) for more information about the documentation you need to register a car in North Carolina.
Out-of-State Vehicles
If the vehicle is from another state, a bill of sale is not required, but creating one is recommended to document all the relevant information.
Abandoned or Junk Vehicles
If you are looking to sell an abandoned or junked vehicle, you may do so after it has been on your private property for more than 30 days, but it is recommended that you have the vehicle inspected by the North Carolina DMV before doing so.
Vehicles Sold by Dealers
If you are purchasing a vehicle from a dealer in North Carolina, a bill of sale is mandatory
Vehicles Sold by Private Parties
If you buy from a private person and need proof of purchase, having a bill of sale can go a long way.
North Carolina Bill of Sale for Boats (Vessel) Requirements
Boat sales in North Carolina require a bill of sale for the vessel to be successfully registered. Boat registration is handled by the North Carolina Wildlife Resources Commission.
In North Carolina, a bill of sale for a boat should include:
Mandatory Information
The seller's and the buyer's names
Boat's make and model
The registration number and the hull ID number
Purchase price
Date of the sale
Both parties' signatures
For the bill of sale to be legally binding and acceptable for boat registration, it must be notarized.
North Carolina Bill of Sale for Firearms Requirements
While a bill of sale is not legally required for firearm sales in North Carolina, documenting the transaction is advisable.
Include relevant details such as:
Mandatory Information
the parties' names and addresses
Firearm's make and model
Purchase price
Signatures of both parties
Note that North Carolina state law makes it illegal to sell or buy a firearm without a prior license or permit from the county sheriff in the buyer's or seller's place of residence.
North Carolina Bill of Sale for Horses Requirements
In North Carolina, a bill of sale is not legally required for horse sales.
However, it is recommended to create a written agreement to document the transaction and protect the buyer and seller.
North Carolina Bill of Sale for Trailers (RVs) Requirements
To ensure the proper registration of your trailers in North Carolina, it is crucial to submit the required documentation, which includes a bill of sale.
This legal document must contain:
Mandatory Information
The names and addresses of both the buyer and seller
Sale date
Detailed description of the trailer (including make, model, year, and vehicle identification number)
Purchase price
Signatures of all parties involved
North Carolina Bill of Sale Other Requirements
North Carolina has specific requirements for bills of sale in terms of language and the number of copies.
As North Carolina's official language is English, bills of sale should be written in English. Even though a bill of sale written in another language is legally binding, as long as all parties understand the terms of the sale, it must be translated into English before being submitted to the appropriate authorities.
It is also recommended to create multiple copies of the bill of sale, with one for each party involved and an additional one for record-keeping or submission to relevant authorities if necessary.
North Carolina Bill of Sale Taxes
A tax known as the highway user tax applies in the state of North Carolina.
This tax is levied at a rate of 3% on all vehicles purchased within the state. However, for vehicles purchased outside of North Carolina, the maximum highway user tax is capped at $250.
Bear in mind that all vehicles in North Carolina are also subject to property tax. This tax is administered by the N.C. Division of Motor Vehicles. As such, it is important to factor in this additional cost when purchasing a vehicle in the state.
North Carolina Bill of Sale FAQ
A written bill of sale also has legal weight. Therefore, when you write one, it's important to include all the important details about the sale.
In North Carolina, a bill of sale should be signed by both parties as a confirmation of the sales terms. Notarizing signatures can further strengthen the document's credibility and legal standing.
Our website provides templates for bill of sale documents customized to North Carolina's legal requirements.
Download the appropriate template to ensure that your bill of sale complies with all relevant regulations and includes all necessary information.
Both parties can benefit from a bill of sale in North Carolina, as it provides a written record of the transaction and protects them from potential issues in the future.