Title jumping is the practice of buying a vehicle, never titling it in your name, and then signing the title over to the next buyer as if you were the original owner. In North Carolina it collides directly with §20-73(a), which requires the person a vehicle is transferred to apply for a new certificate of title within 28 days. Here is exactly what it is, why no licensed buyer will touch it, and how to spot a title that has been jumped.
The NC statute and the penalties
NC General Statute §20-73(a) states that a person to whom a vehicle is transferred must apply to the Division for a new certificate of title within 28 days after the vehicle is transferred. Under §20-73(c), a transferee who fails to apply within the required time is subject to a civil penalty of twenty dollars ($20.00) and is guilty of a Class 2 misdemeanor.
That is a separate rule from §20-74, which makes it a Class 3 misdemeanor for a dealer or another person to knowingly make a false statement about the date a vehicle was sold or acquired in an application required by the Division. Backdating an assignment to hide a skipped transfer can implicate that statute.
§20-72 is the companion provision: it governs how an owner assigns and warrants title on the reverse of the certificate, and provides that no title passes or vests until the assignment is executed and the vehicle delivered to the transferee. That is why a signed-but-open title leaves the chain of ownership incomplete.
Why title jumping happens (and why it always loses)
Most title jumping is tax avoidance — NC charges a 3% highway-use tax on every titled transfer, capped at $250 for commercial vehicles. Someone flipping cars dodges the tax by skipping the intermediate title.
The catch: NCDMV cross-references title dates against odometer readings against VIN searches in NLETS. A title signed by 'Seller A' but reported sold to 'Buyer C' (with 'Buyer B' in the middle never appearing in NCDMV records) is flagged automatically.
How to spot a title that has been jumped
| Red flag | What it means |
|---|---|
| Seller's name on title does not match the person handing it to you | Active jump in progress |
| Title signed but undated | Jumper holding for the next buyer |
| More than 28 days between previous-owner signature and current sale | §20-73(a) deadline missed |
| Multiple cross-outs in the buyer section | Previous jumps that failed |
| Out-of-state title with NC seller | Common jump tactic to dodge state tax |
What to do if you receive a jumped title
Do NOT submit it to NCDMV as-is — you will be assessed the back tax for both transactions and possibly held liable for the prior owner's reporting violations. Either return the title and demand the seller complete the intermediate transfer first, or refuse the purchase.
If you already submitted, contact the NCDMV Vehicle Services Section about the incomplete chain of ownership and be prepared to pay the highway-use tax owed on the transfer. Where the assignment itself was completed incorrectly, NCDMV form MVR-28 (Affidavit of Facts: Incorrect Assignment of Title or Certificate of Origin) is the form that voids the bad assignment — and it must be completed by all parties involved in the incorrect assignment (seller, buyer, and lienholder if applicable), each signing before a notary.
Common myths
- Myth: Title jumping is a 'gray area'.Reality: NC §20-73(a) sets a hard 28-day deadline to apply for a new title, and §20-73(c) attaches a $20 civil penalty and a Class 2 misdemeanor when it is missed.
- Myth: If the title is signed, I can take it.Reality: An open (signed but undated, no buyer named) title is the textbook jump-in-progress and will be rejected at NCDMV.
Authoritative references on this site
- NC title transfer guide — the full NCDMV title-assignment process
- We buy no-title junk cars — what we actually accept on the day of pickup
Related title-help articles
- Signed title mistakes in NC and how to fix them
- Who buys junk cars without titles in North Carolina
- Master paperwork checklist for selling a junk car in NC
- Can someone else sell my vehicle for me in North Carolina?
- You bought a car in NC and can't register it because the seller is gone
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