Free North Dakota Gift Bill of Sale
North Dakota gives a gift recipient 30 days from receiving the signed title to complete the paperwork. Gifts between spouses, parent and child, siblings, or grandparent and grandchild are exempt from North Dakota's 5% motor vehicle excise tax, so a $20,000 vehicle gift saves $1,000 in tax when documented correctly.
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North Dakota Gift Bill of Sale — What You Need to Know
Sales Tax Details
North Dakota normally charges a 5% motor vehicle excise tax on vehicle purchases — the statute says on the purchase price, while NDDOT's 2026 private-party bill of sale form (SFN 62502) says fair market value.
Exemption: Gifts between spouses, parent and child, siblings, or grandparent and grandchild are exempt from North Dakota's 5% motor vehicle excise tax; apply for title within 30 days of receiving it
Inspection Requirements
North Dakota has no statewide vehicle emissions or safety inspection requirement for private vehicle transfers.
North Dakota Gift Sale — Step-by-Step Checklist
- Confirm the recipient qualifies as immediate family: spouse, parent, child, sibling, grandparent, or grandchild.
- Prepare a gift bill of sale listing VIN, year, make, model, odometer reading, $0 sale price, the family relationship, and both parties' names, addresses, and signatures.
- Donor completes odometer disclosure on the title (required for vehicles of model year 2011 or newer).
- Donor signs the title assignment section over to the recipient, writing 'Gift' in the purchase price field and noting the family relationship.
- Complete ND DOT Form SFN 2872 (Application for Certificate of Title and Registration), noting the gift and the family relationship.
- Recipient takes the signed title, SFN 2872, gift bill of sale, and proof of ND liability insurance to NDDOT (by mail or at a motor vehicle office) within 30 days of receiving the title.
- Pay applicable title and registration fees (the 5% excise tax is waived for qualifying family gifts).
Common Pitfalls
- Not documenting the family relationship: if neither the title application nor the bill of sale clearly states the relationship, the gift exemption may not be applied.
- Assuming the 30-day window is forgiving: letting it lapse can put the registration at risk.
- Writing a nominal dollar amount instead of $0: entering a purchase price makes the transfer look like a sale rather than a gift.
- Skipping odometer disclosure on the title: for vehicles of model year 2011 or newer, odometer certification on the title is a federal requirement. An incomplete title will not transfer.
Pro Tip
North Dakota's 30-day window is standard — use it to get the paperwork organized without stress. Even so, don't wait: the longer the vehicle is driven without a title in the recipient's name, the more risk there is if the vehicle is involved in an accident or traffic stop. Completing the transfer within the first 30 days is a reasonable target.