How To Sell a Car in North Dakota

Selling a motor vehicle in North Dakota requires compliance with state regulations governing title transfer, ownership documentation, damage disclosure, motor vehicle excise tax, and related registration requirements. The North Dakota Department of Transportation Motor Vehicle Division administers these processes and maintains official guidance on all procedures.

What You Need To Know Before Selling a Car in North Dakota

Title Law and Ownership Requirements

Under NDCC Chapter 39-05, a certificate of title is required for most motor vehicles before a valid sale can be completed. The owner must ensure that the vehicle is free from all liens and encumbrances and that all ownership records are accurate and current prior to transferring the vehicle to a buyer. The owner or transferor shall endorse an assignment and warranty of title upon the certificate of title and include the buyer's name and selling price on the assignment.

When two or more owners are listed on the title, the relationship among their names determines who must sign. If the names are joined by "and," all owners must sign the assignment. If the names are joined by "or," only one owner's signature is required.

Vehicles Exempt From Title Requirements

Not every vehicle requires a North Dakota certificate of title. Per NDCC Section 39-05-02.2, vehicles exempt from the title requirement include those owned by the United States; vehicles owned by a manufacturer or dealer and held for sale; vehicles owned by a nonresident not required to be registered in North Dakota; implements of husbandry; and certain other categories. Additionally, private-party sellers of vehicles more than 40 model years old may use a bill of sale or affidavit of ownership in lieu of a certificate of title.

Satisfying an Existing Lien

If an active lien is recorded on the vehicle's title, the lien must be satisfied and released before the vehicle can be sold. Upon satisfaction of a security interest, the lienholder must execute a release within ten days after demand and within thirty days of satisfaction. The seller should contact the lienholder to obtain the Release of Lien by Legal Owner (Form SFN 2876) and, if applicable, the physical certificate of title. The release must accompany any title transfer application.

Damage Disclosure Requirements

Motor vehicle body damage disclosure requirements apply to the transfer of titles for vehicles that are less than 9 model years old. Per NDCC Section 39-05-17.2, motor vehicle body damage means a change in the body or structure of a motor vehicle resulting from a crash, accident, fire, vandalism, weather, or submersion that equals or exceeds the greater of ten thousand dollars or twenty-five percent of the vehicle's predamage retail value as determined by the National Automobile Dealers Association Official Used Car Guide. The seller must disclose this damage when transferring ownership. A Damage/Salvage Disclosure Statement (Form SFN 18609) must be completed and signed by both the seller and buyer at the time of transfer.

No Inspection or Emissions Requirements

North Dakota does not require a private-party seller to obtain a vehicle safety inspection or an emissions test before completing a sale. Physical vehicle inspections are required only for salvage vehicles being reconstructed to obtain a regular certificate of title and must be completed by a registered business that is not the business that reconstructed the vehicle.

Documents Required To Sell a Car in North Dakota

Certificate of Title

The existing certificate of title establishes ownership and must be properly assigned to transfer the vehicle. The seller completes the assignment section on the reverse of the title by providing the buyer's legal name, the date of sale, and the selling price if applicable, and signs exactly as the name appears on the front of the title. The certificate of title must not be altered, defaced, or contain any corrections made with correction fluid or similar means. The seller must deliver the endorsed certificate of title to the buyer within thirty days of the sale. Failure to deliver the title within this timeframe may result in suspension or revocation of the seller's vehicle registration.

Bill of Sale

Although North Dakota law does not mandate a bill of sale for all private vehicle transfers, the state provides an official form, and it is strongly recommended for all transactions. The Seller's Certificate and Vehicle Bill of Sale (Form SFN 2888) must contain the following information: the buyer's full legal name and complete address, the seller's full legal name and complete address, the date of sale, a complete vehicle description including the VIN, make, year, model, and body style, the selling price, and signatures of both parties. While notarization is not required, the form includes an acknowledgment section with space for notary certification. Both parties should retain a signed copy.

Damage/Salvage Disclosure Statement

The Damage/Salvage Disclosure Statement (Form SFN 18609) must be completed for all vehicles less than nine model years old that are being transferred. The seller must disclose whether motor vehicle body damage meeting the disclosure threshold has occurred. Both the seller and buyer must sign the form.

Odometer Disclosure

Odometer disclosure information is required as part of the title application when applicable. Per NDCC Section 39-05-05, the application for a certificate of title must include odometer disclosure information as required under the federal Truth in Mileage Act of 1986. This information is typically included on the Application for Certificate of Title and Registration of a Vehicle (Form SFN 2872), which contains fields for actual mileage, exceeding mechanical limits, or not actual mileage.

Release of Lien (If Applicable)

If the vehicle has an outstanding lien, the Release of Lien by Legal Owner (Form SFN 2876) must be obtained from the lienholder and provided to the buyer. This form certifies that the lien has been satisfied and released. Without this release, the buyer cannot obtain a clear title.

How To Transfer a Car Title in North Dakota

Step 1: Review the Title Before the Sale

Before listing the vehicle for sale, the seller should verify ownership by reviewing the certificate of title to confirm the legal name and address match current records. The seller should also check the title for any liens or encumbrances listed on the front. If a lien is recorded, the seller must confirm that the lien will be satisfied at or before closing. If the title has been lost, stolen, or mutilated, the seller should obtain a duplicate by submitting Form SFN 2872.

Step 2: Prepare the Bill of Sale and Damage Disclosure Paperwork

Before the sale is completed, both parties should prepare the Seller's Certificate and Vehicle Bill of Sale (Form SFN 2888). For vehicles less than nine model years old, the Damage/Salvage Disclosure Statement (Form SFN 18609) must also be completed. Both documents should be signed by the seller and buyer in the presence of a notary public if notarization is desired for additional protection, though notarization is not legally required for the sale to be valid.

Step 3: Complete the Title Assignment

At the time of sale, the seller completes the reverse side of the certificate of title by endorsing the assignment and warranty of title. The seller prints the buyer's full legal name and address in the assignment section and enters the date of sale, the selling price if applicable, and the current odometer reading. The seller signs the title exactly as the legal name appears on the front. The seller must print their legal name below the signature line. Both parties should verify that all information on the assignment is accurate before signing, as the title may not be accepted by the Motor Vehicle Division if it contains alterations or corrections.

Step 4: Obtain Lien Release (If Applicable)

If the vehicle has a recorded lien, the seller must contact the lienholder and obtain the executed Release of Lien by Legal Owner (Form SFN 2876). The lienholder must sign and date the release form. The seller should verify that the release is properly executed before delivering it to the buyer.

Step 5: Deliver Documents to the Buyer

The seller delivers the following to the buyer at the time of sale: the properly assigned original certificate of title signed by the seller, a signed copy of the bill of sale, the completed Damage/Salvage Disclosure Statement (Form SFN 18609) if applicable, and any Release of Lien by Legal Owner (Form SFN 2876) if a lien was satisfied. The seller should retain copies of all documents for personal records.

Step 6: Remove License Plates

The seller must remove the license plates from the vehicle before delivery to the buyer. License plates remain the property of the seller and do not transfer with the vehicle. The seller may retain the plates to transfer to another vehicle or surrender them to a local Motor Vehicle Division office.

Step 7: Buyer Submits Application for New Title

Within 30 days of receiving the endorsed certificate of title, the buyer must apply to the North Dakota Motor Vehicle Division for a new certificate of title. The buyer submits the Application for Certificate of Title and Registration of a Vehicle (Form SFN 2872) along with the assigned certificate of title, bill of sale, damage disclosure statement if applicable, and a $5 title fee. The buyer may apply at any Motor Vehicle Division office or branch location by appointment or mail the application and documents to the central office. Failure of the buyer to apply for a new title within 30 days may result in suspension or revocation of the vehicle's registration.

Title Transfer Fee Schedule in North Dakota

The following fees are collected by the North Dakota Motor Vehicle Division as codified in Chapter 39-05.

In addition to state fees, certain branch offices may charge a service processing fee. Registration license fees are separate from title fees and vary based on vehicle type, weight, and model year.

Sales Tax on Private Vehicle Sales

Under North Dakota law, private-party vehicle sales are subject to a state motor vehicle excise tax of five percent of the taxable purchase price. Per North Dakota Office of State Tax Commissioner guidelines, the taxable purchase price includes all charges for accessories, dealer preparation, freight, and delivery, less any qualified discounts, such as a trade-in allowance, manufacturer's rebate, or auction fee. Title, registration, license, and document fees are not included in the taxable purchase price.

However, the buyer may be subject to local sales tax on other items purchased in the same transaction. The buyer pays the motor vehicle excise tax at the time of registration when applying for a new certificate of title. Sales of certain categories of vehicles are exempt from motor vehicle excise tax, including sales to disabled veterans, enrolled tribal members whose primary residence is within a North Dakota Indian reservation, sales to federal or state government entities, transfers due to inheritance or bequest, and transfers as gifts between spouses, parents and children, grandparents and grandchildren, or siblings.

What To Do After Selling Your Car in North Dakota

Remove License Plates

The seller must remove the North Dakota license plates from the vehicle before the buyer takes possession. License plates do not transfer with the vehicle and remain the seller's property. The seller may voluntarily surrender the plates to a Motor Vehicle Division office or branch location or retain them for transfer to another vehicle.

Cancel Insurance Coverage

After the sale is finalized, the seller should contact the automobile insurance provider to cancel coverage for the sold vehicle. North Dakota law does not require the seller to maintain insurance on a vehicle no longer owned, and continuing unnecessary coverage may result in avoidable premium charges.

Verify Buyer's Title Transfer

The seller should confirm that the buyer has applied for a new certificate of title within the required thirty-day period. While the seller is not legally responsible for the buyer's failure to apply, confirming a timely transfer helps prevent potential future liability disputes.

Retain Copies of Sale Documents

The seller should retain a copy of the executed bill of sale, the damage disclosure statement (if applicable), and any other transaction documents for personal records. These documents may be needed to prove the sale in the event of future liability disputes or if questions arise regarding the transaction.

Contact Information

North Dakota Department of Transportation — Motor Vehicle Division
608 East Boulevard Avenue, Bismarck, ND 58505-0780
Phone: (701) 328-2725
Official Website: North Dakota Department of Transportation