What a Release of Liability Does

A Release of Liability is a form you file with the California DMV to remove your name from a vehicle's registration after you sell, trade, or give away the car. Filing it protects you from liability for traffic violations, accidents, parking tickets, and toll violations that happen after the vehicle leaves your possession — even if the new owner never registers it in their name.

Without this form on file, the DMV will continue to associate you with the vehicle. If the new owner gets a ticket or is in an accident, collection notices and liability claims can still reach you. The form creates an official record that you are no longer the owner.

California law requires you to file this form within 5 days of selling or transferring the vehicle. Filing late does not prevent you from filing, but it leaves you exposed during the gap.

Key Takeaways

  • You must file a Release of Liability within 5 days of selling or transferring a vehicle to protect yourself from future liability.
  • The form is free and can be filed online through the DMV website, by mail, or in person at a DMV office.
  • You need the vehicle's license plate number, VIN, and the date of sale or transfer to complete the form.
  • If you sell the vehicle to a dealer, the dealer files the form, so you do not need to file it yourself.
  • Filing late or not at all leaves you liable for violations and accidents involving the vehicle after you no longer own it.

How to File Online Through the DMV Website

The fastest way to file is through the California DMV's online system. Go to dmv.ca.gov and look for the Release of Liability option under vehicle services. You will need your California driver's license or ID number, the vehicle's license plate number, and the VIN (found on your registration or the vehicle itself).

Enter the date you sold or transferred the vehicle and confirm the information. The form is submitted when ready, and you will receive a confirmation number. Keep this number for your records. The DMV processes online filings the same day or within one business day.

Online filing works only if you have a valid California driver's license or ID and the vehicle's information matches the DMV's records. If either is missing or incorrect, you will need to file by mail or in person.

Filing by Mail

If you cannot file online, you can mail the form to the DMV. Request the Release of Liability form (REG 138) from the DMV website, or pick one up at any DMV office. Fill in your name, address, driver's license number, the vehicle's license plate number, VIN, and the date of sale or transfer.

Mail the completed form to the address listed on the form itself — it varies by county. Include a copy of your driver's license or ID if this is your first time filing with the DMV. Mail processing takes 2 to 4 weeks, so send it as soon as possible after the sale.

Keep a copy of the form and the mailing receipt for your records. If you need proof that you filed, the DMV can provide a dated receipt showing when the form arrived.

Filing in Person at a DMV Office

You can walk into any California DMV office and file the form in person. Bring your driver's license or ID, the vehicle's license plate number, and the VIN. You can request the form at the office or bring a completed copy from home.

In-person filing is processed when ready, and you will receive a stamped copy showing the date filed. This is the fastest way to get proof of filing if you need it for a dispute or insurance claim. Wait times vary by location and time of day — arriving early in the morning typically means a shorter wait.

What Happens If You Sell to a Dealer

When you sell your vehicle to a licensed dealer — whether a new car dealership, used car lot, or buy-here-pay-here operation — the dealer is responsible for filing the Release of Liability. You do not need to file it yourself. The dealer must file within 10 days of purchase.

Ask the dealer for written confirmation that they have filed or will file the form. If you do not receive confirmation within two weeks, contact the dealer in writing to request proof of filing. Keep this confirmation in case a violation or accident claim reaches you after the sale.

Protecting Yourself If the New Owner Does Not Register the Vehicle

Even after you file a Release of Liability, you remain at risk if the new owner never registers the vehicle in their name. Parking tickets, toll violations, and registration-based violations can still be sent to you because the DMV's records still show your name on the title.

If you receive a notice after filing, respond when ready and include a copy of your Release of Liability filing confirmation. Explain that you sold the vehicle on the date listed and filed the form with the DMV. The agency issuing the notice will usually dismiss it once they see the filing date.

For added protection, photograph the vehicle's odometer and condition before the sale, and get a bill of sale signed by both you and the buyer with the date and mileage. This creates a paper trail if you need to dispute a claim later.

Common Mistakes to Avoid

The most common mistake is waiting too long to file. The 5-day window is not a hard important date — you can file late — but every day you wait leaves you exposed. File within 24 hours of the sale if possible.

Another mistake is filing with the wrong information. Double-check the license plate number and VIN before submitting. If either is wrong, the DMV will file the form against the wrong vehicle, and you will still be liable for the actual vehicle you sold.

Do not assume the buyer will register the vehicle. Many private sales result in vehicles that sit unregistered for months or years. File the form yourself regardless of what the buyer promises to do.

If you sold the vehicle out of state, you still need to file with the California DMV if the vehicle was registered in California. The form protects you from California-based liability only, but that is where your registration was on file.

Frequently Asked Questions

What if I already sold the vehicle months ago and never filed?

File now. There is no time limit on filing a Release of Liability — you can file years after the sale. However, you remain liable for anything that happened between the sale date and the filing date. If you receive a notice for a violation during that gap, include the filing confirmation and explain the delay.

Do I need to file if I trade the vehicle in at a dealership?

No. When you trade in a vehicle, the dealership handles all paperwork, including the Release of Liability. You do not need to file anything yourself. The dealership's paperwork transfer is sufficient.

Can I file a Release of Liability if the buyer is a family member?

Yes. The form works the same way whether you sell to a stranger or a family member. File it within 5 days of the transfer, and you will be removed from liability. Family relationships do not change the DMV's process.

What if the new owner gets into an accident before I file?

You are still liable if the accident happened before you filed the Release of Liability. The form only protects you from liability that occurs after the filing date. This is why filing within 24 hours of the sale is important.

How do I know if my Release of Liability was actually filed?

If you filed online, you received a confirmation number when ready. If you filed by mail, the DMV will send you a receipt showing the filing date. If you filed in person, you received a stamped copy. You can also call the DMV at 1-800-777-0133 and provide your driver's license number to confirm the filing is in the system.