G.S. 20-60. Owner after transfer not liable for negligent operation

The full text of G.S. 20-60 (Owner after transfer not liable for negligent operation), with plain-English commentary from North Carolina DWI defense attorneys Chris Adkins and Chris Purkey in the side column. Article 3: Motor Vehicle Act of 1937.

Attorney commentary

This section protects people who sell a vehicle. Once the owner has made a good-faith sale or transfer, handed over the vehicle, and delivered a properly signed certificate of title to the buyer, the former owner is not liable for damages caused afterward by someone else’s negligent driving of that vehicle.

All three steps matter: a real sale, delivery of the vehicle, and delivery of the signed title.

Practical note: sellers should sign the title over correctly at the time of sale and keep a record of the date, and should not let a buyer drive off on the seller’s plates or insurance. Transfer steps are in G.S. 20-72, and G.S. 20-71.1 explains why registration records matter if a crash happens.

Commentary by Attorney Chris Adkins & Attorney Chris Purkey, Adkins & Purkey, PLLC · Reviewed November 2026 · General information, not legal advice.

§ 20-60. Owner after transfer not liable for negligent operation.

The owner of a motor vehicle who has made a bona fide sale or transfer of his title or interest, and who has delivered possession of such vehicle and the certificate of title thereto properly endorsed to the purchaser or transferee, shall not be liable for any damages thereafter resulting from negligent operation of such vehicle by another. (1937, c. 407, s. 24.)

Official text of N.C. Gen. Stat. § 20-60 as published by the North Carolina General Assembly (Chapter 20 PDF, retrieved November 10, 2026). Verify the current version on ncleg.gov ↗.

G.S. 20-60. Owner after transfer not liable for negligent operation

§ 20-60. Owner after transfer not liable for negligent operation.

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