A method to take fully into account the spurious CM motion in the shell model wavefunctions for the bound state is presented. This method is based on the earlier method of Philpott (1977) given for the continuum shell model. The exact intrinsic wavefunctions for the bound states obtained by this method have been used to calculate the form factors for the nucleon transfer reactions. These form factors have been compared with the CM-corrected form factors obtained by the approximate method of Pinkston (1976, 1977). It is found that Pinkston's method underestimates the CM corrections to the overlap functions for one-nucleon transfer reactions.