What you need to do when you sell a car in California

When you sell a car in California, you must complete a transfer of ownership with the DMV within a specific timeframe. The seller's job is to sign over the title, provide the buyer with certain documents, and notify the DMV that you no longer own the vehicle. The buyer then registers the car in their name. If you skip these steps, you remain liable for the vehicle — including parking tickets, tolls, and accidents — even after the sale is complete.

California law requires you to report the sale to the DMV within five days. You do this by submitting a Notice of Transfer and Release of Liability (Form REG 138), which tells the state you are no longer responsible for the car. Failure to file this form on time can result in the buyer's traffic violations and registration fees being sent to your address.

Key Takeaways

  • You must sign the title (the pink slip) over to the buyer and keep a copy of the signed title for your records.
  • File a Notice of Transfer and Release of Liability (Form REG 138) with the DMV within five days of the sale to protect yourself from liability.
  • You can file the Notice of Transfer online through the DMV website, by mail, or in person at a DMV office.
  • The buyer is responsible for registering the vehicle in their name within 10 days of purchase.
  • If you sell the car to a dealer, the dealer handles the title transfer and you do not need to file the Notice of Transfer yourself.

Preparing the title and ownership documents

The title is the legal proof of ownership and is required to sell the car. In California, the title is a pink document called the Certificate of Title. Before you sell, make sure you have the original title in your possession. If the title is lost or damaged, you must request a duplicate from the DMV before you can complete the sale.

When you are ready to sell, sign the back of the title in the area marked "Seller's Signature." The buyer must also sign the title as the new owner. Some buyers may ask you to leave the signature line blank so they can sign it themselves, but this is not recommended — you should witness the buyer signing to may support the transfer is done correctly. Write the sale date on the title and note the odometer reading at the time of sale. Keep a photocopy of the signed title for your records before handing it to the buyer.

If the title has a lien on it (meaning a bank or lender still has a claim on the vehicle), the lienholder must sign off on the transfer. Contact your lender to find out their process for releasing the lien. Some lenders will send you a lien release document to sign; others will communicate directly with the buyer's lender. Do not sign the title until the lien is released.

Filing the Notice of Transfer and Release of Liability

The Notice of Transfer and Release of Liability (Form REG 138) is the document that removes you from liability for the vehicle. This form tells the DMV that you sold the car and are no longer responsible for it. You must file this form within five days of the sale. If you do not file it and the buyer gets a parking ticket or is involved in an accident, those violations and fees can be traced back to you.

You have three ways to file the Notice of Transfer: online through the DMV website, by mail, or in person at a DMV office. To file online, go to the California DMV website, select "Register a Vehicle" and then "Report a Sale," and follow the prompts. You will need the vehicle identification number (VIN), the buyer's name and address, and the sale date. Online filing is the fastest method and you receive confirmation when ready.

To file by mail, print Form REG 138 from the DMV website, fill it out completely, and mail it to the address listed on the form. Include a copy of the signed title if requested. Mail delivery typically takes one to two weeks, so file early to meet the five-day important date. To file in person, bring the completed form and a copy of the signed title to your local DMV office. Bring a valid ID and be prepared to wait.

What documents to give the buyer

When you hand over the car, you must provide the buyer with the original signed title. The buyer needs this to register the vehicle in their name at the DMV. You should also provide a bill of sale, which is a written record of the transaction that includes the sale price, the date, both parties' names and addresses, the VIN, and the odometer reading. California does not require a bill of sale by law, but it protects both you and the buyer by creating a paper trail of the transaction.

Give the buyer any maintenance records you have, the keys, and the registration card (the white card that came with your registration documents). If the car has a smog certification, provide that as well — the buyer will need it to register the vehicle. Some buyers may ask for the owner's manual or service records; these are not required but are helpful to include if you have them.

Selling to a dealer versus a private buyer

If you sell the car to a licensed dealer, the dealer handles most of the paperwork. You still sign the title over to the dealer, but the dealer files the Notice of Transfer with the DMV on your behalf. You do not need to file Form REG 138 yourself in this case. The dealer will provide you with a receipt showing the sale date and the dealer's name and license number. Keep this receipt as proof that you sold the vehicle.

When you sell to a private buyer, you are responsible for filing the Notice of Transfer within five days. Private sales require more documentation from you because you are the one transferring ownership. Make sure the buyer understands that they must register the vehicle within 10 days of purchase, or they may face late registration fees.

Common mistakes to avoid when selling your car

The most common mistake is failing to file the Notice of Transfer within five days. Many sellers assume the buyer will handle all the paperwork, but that is not how California law works. You remain liable until you file the Notice of Transfer, so do this when ready after the sale closes.

Another mistake is signing the title but not keeping a copy. Always photocopy the signed title before giving it to the buyer. If there is a dispute later about the sale date or the odometer reading, you will have proof of what was agreed to. Do not leave the seller's signature line blank on the title — sign it yourself and have the buyer sign in your presence.

Do not accept a personal check as payment unless you are willing to wait for it to clear. Once you sign the title, the car is legally the buyer's, even if the check bounces. If possible, meet the buyer at their bank and have them withdraw cash or get a cashier's check before you hand over the keys and title.

What happens after you file the Notice of Transfer

Once you file the Notice of Transfer, the DMV removes your name from the vehicle registration. You will no longer receive registration renewal notices or parking violation notices for that car. The buyer then has 10 days to register the vehicle in their name. If the buyer does not register within 10 days, the registration may be suspended and the buyer may face penalties.

Keep the confirmation receipt or email from the DMV showing that you filed the Notice of Transfer. If a violation or ticket is later attributed to you, you can use this receipt to prove that you reported the sale on time. The DMV typically processes the Notice of Transfer within one to two weeks, but your liability ends as soon as you file it.

Frequently Asked Questions

What if I lost the title to my car?

You must request a duplicate title from the DMV before you can sell the car. Go to a DMV office or order a duplicate online through the DMV website. You will need to provide your vehicle identification number and proof of ownership. A duplicate title typically arrives within two to three weeks.

Can I sell a car that still has a loan on it?

Yes, but the lender must release the lien first. Contact your lender and ask for a lien release document. Some lenders will release the lien once you pay off the loan balance; others may require the buyer's lender to pay off the loan directly. Do not sign the title until the lien is released and you have the lien release document in hand.

What if the buyer does not register the car within 10 days?

That is the buyer's responsibility, not yours. Once you file the Notice of Transfer, you are no longer liable for the vehicle. If the buyer fails to register and the car is involved in an accident or receives a ticket, the violation will be traced to the buyer, not to you. Your Notice of Transfer filing protects you.

Do I need a bill of sale to sell my car in California?

California does not require a bill of sale by law, but it is strongly recommended. A bill of sale creates a written record of the transaction and protects both you and the buyer. Include the sale price, date, both parties' names and addresses, the VIN, and the odometer reading. Both you and the buyer should sign and keep a copy.

Can I sell my car online without meeting the buyer in person?

You can list and negotiate the sale online, but you must meet the buyer in person to sign the title and transfer ownership. California law requires your signature on the title, and you should verify the buyer's identity and inspect their payment before handing over the keys and title. Never mail the title to a buyer you have not met.