Now the B.S. begins
People buy and sell cars everyday in Georgia with no title. It's perfectly legal. I caint remember....I think it;s older than like 85 or some crap and no title is required. Bill of sale only. Also in Georgia, if a car is ever registered without a title, you cannot ever get one for it again, no matter what. No big fancy lawyer, no snazzy internet title site, no nuthin. It's a bill of sale car the rest of its life.
I don't know the NC laws, but they may be about the same. If a title is not required on it, the law may see the guy in the clear, even though the stepdaughter basically sold the car illegally. It's just a bad deal all the way around.