Selling or Giving Away a Vehicle in California in 2026

The release of liability: what it does

A Notice of Transfer and Release of Liability means you are no longer legally responsible for violations after the vehicle's date of sale, as the DMV's NRL page puts it. Once the DMV receives it, any liability for parking violations, traffic violations or civil litigation after the date of sale becomes the responsibility of the subsequent purchaser under Vehicle Code section 5602, and no further registration renewal notices are mailed to you for that vehicle. The DMV adds that in a suit or complaint it is the court that decides whether you complied with the law and are exempt. The notice is required by Vehicle Code section 5900 within five calendar days of selling or transferring the title or interest and delivering possession.

What the notice does not do: it is not a transfer of ownership. The DMV says only the buyer's application for transfer, using the endorsed title you handed over, removes your name from the vehicle record, so a buyer who never transfers the vehicle leaves your name on it; that is why the DMV's lien sale guide explains that a seller who filed the notice can still receive a notice of pending lien sale. The DMV's moving out of state page adds that the REG 138 must be submitted not only when the vehicle is sold but also when it is gifted or donated.

Filing it online or on paper

Online, the DMV's NRL service asks for the new owner's name and address, the plate number and the last five digits of the VIN, and the odometer reading at the time of sale; the make and model year are filled in automatically, the record is updated within one business day, no paper copy is needed, and the DMV says to print and keep the confirmation as proof. If the plate or VIN shows no match, check the entry and, if it is correct, call 1-800-777-0133. A business as buyer or seller is entered with its name in the last name field. On paper, the Notice of Transfer and Release of Liability (REG 138) is mailed to the address on the form, with a photocopy kept for your file; the DMV warns that missing or illegible information may keep it from updating the record and may disqualify the exemption. Someone else may submit the notice for you, but you remain responsible for any missing information. A copy of a notice already submitted is obtained with a Request for Record Information (INF 70) by mail with the fee.

What the DMV must receive

Vehicle Code section 5900 sets the information the DMV collects: a description of the vehicle or vessel with the plate number or vessel CF number (typed without symbols), the VIN or hull identification number, the make or vessel builder and the model year; the new owner's name and address; the odometer reading as of the sale or transfer date; the date of sale; and the seller's or lessee's name and address. The DMV explains the three odometer statements: actual mileage; exceeds mechanical limits, meaning the odometer reached its highest number and started over; and not actual mileage, meaning the odometer is broken or was replaced, or the owner is unsure of the true mileage. The driving record guide explains how the DMV handles requests for another person's vehicle record.

Before the buyer drives away

The title. The buyer needs the California Certificate of Title signed by you on line 1, per the DMV's private party purchase page; a lost, stolen or damaged title is replaced first with the REG 227. When the seller is not the person named on the title, a Bill of Sale signed by both is needed. The odometer reading for a vehicle less than 10 years old goes on the title, or on a Vehicle/Vessel Transfer and Reassignment (REG 262) signed by buyer and seller when the title has no mileage line. The buyer then has 10 days to transfer ownership and pays a late penalty after 30 days; the DMV's dealer page notes that the words between co-owners' names matter, since "or" lets one owner sell alone while a slash or "and" requires both signatures.

The smog certificate. The DMV's smog page says a seller must give the new owner a valid smog certification, unless the car is less than four years old, in which case the new owner pays a smog transfer fee instead; a gift from a family member needs no smog inspection unless that family member bought the car for the recipient without first titling it. The full rule, with the exempt vehicles, is on the smog check guide.

Personalized or special interest plates. The DMV's personalized plates page says to remove them before the new owner takes possession if you want to keep them for reassignment or future use; an annual retention fee may apply, and the new owner receives regular plates at no charge on transfer. Plates may stay on the vehicle only if you release your priority on a Special Interest License Plate Application (REG 17) submitted with the transfer, after which the new owner files a separate REG 17 and pays the plate fee; the license plates guide has the details.

Past due fees. The DMV's planned nonoperation page says a buyer of a California registered vehicle becomes responsible for any past due fees and penalties when the vehicle is transferred, unless the registration is current or a PNO is on file.

After the sale

If a registration renewal notice arrives for the vehicle, the DMV did not receive the release of liability or it was incomplete, and another must be filed; the notices are computer generated more than 60 days before the expiration date and can cross in the mail with the release. If an online release was filed, the DMV says not to send the renewal notice or the confirmation page back, since the confirmation is the proof. If a notice requesting proof of insurance arrives after you sold the vehicle and cancelled the policy, the DMV's affidavit of non-use page says to submit a release of liability immediately; no insurance notice is sent when a release is on file. When a vehicle with a suspended registration is transferred to a new owner, the $14 reinstatement fee is waived and the new owner must submit proof of insurance within 30 days of the new registration card. A notice of pending lien sale for a vehicle you sold means the buyer never completed the transfer; the lien sale guide explains the notice and the 10-day window to oppose a sale. The insurance guide covers registration suspensions in full.

Questions about selling a vehicle in California

How many days do I have to report the sale?

Five calendar days from the date you sell or transfer the title or interest in the vehicle and deliver possession to the new owner, under Vehicle Code section 5900, per the DMV.

Does the release of liability take my name off the vehicle?

No. The DMV says only the buyer's application for transfer, using the title you endorsed, removes your name from the record; the release of liability shifts responsibility for violations after the date of sale and stops renewal notices.

What if I do not know the buyer's name?

The DMV says you may enter unknown in the buyer's name and address fields, but warns that missing information may keep it from updating the record, which may disqualify the liability exemption.

Do I have to give the buyer a smog certificate?

Yes, a valid smog certification at the time of sale, per the DMV's smog page, unless the car is less than four years old, in which case the new owner pays a smog transfer fee instead.

Can I keep my personalized plates?

Yes. The DMV says to remove personalized or special interest plates before the new owner takes possession; an annual retention fee may apply, and the new owner receives regular plates at no charge when they transfer ownership.

I still get renewal notices for a car I sold. Why?

Either the DMV did not receive your release of liability or it was incomplete or illegible; in both cases the DMV says to submit another. Notices are generated more than 60 days before expiration and can cross in the mail with the release; if the original was filed online, the confirmation page is the proof and the notice should not be sent back.