A release of liability tells the DMV you no longer own a vehicle

A release of liability is a form you file with the California DMV to notify them that you sold, gifted, or otherwise transferred ownership of a vehicle. It protects you from being held responsible for traffic violations, accidents, parking tickets, or registration fees that occur after you no longer own the car. The form is called the Notice of Transfer and Release of Liability, and you submit it to the DMV within a specific window after the sale or transfer happens.

The release does not transfer the title itself — that is a separate step the new owner handles. The release straightforward tells the DMV: "I owned this vehicle until this date, and I am no longer responsible for it." Without filing this form, you remain the registered owner in the DMV's records, which means tickets, tolls, and other violations can still come to you even after you sold the car.

Key Takeaways

  • You must file a release of liability within 5 days of selling or transferring a vehicle, or you may remain liable for violations and fees that occur after the sale.
  • The form is the Notice of Transfer and Release of Liability (REG 138), available from the DMV website or in person at any DMV office.
  • You can file the release by mail, online through the DMV website, or in person, and there is no fee to submit it.
  • If you sell a vehicle to a private buyer, you should also give them a copy of the release so they have proof you notified the DMV.
  • Filing a release does not prevent the new owner from registering the vehicle — it only removes your liability once the transfer is complete.

When you must file a release of liability

You are required to file a release of liability whenever you sell, donate, or transfer ownership of a vehicle to someone else. This includes sales to private individuals, trades to dealerships, gifts to family members, and vehicles you turn over to a junk or salvage yard. The important date is 5 days from the date of sale or transfer. If you miss this window, you remain the registered owner and can be held liable for violations, accidents, and unpaid registration fees.

You do not need to file a release if you keep the vehicle or if it is stolen. If your car is stolen, you should report the theft to the police and the DMV separately — the DMV will handle the liability issue once the theft is documented in their system.

How to file the release of liability form

The form you need is the Notice of Transfer and Release of Liability (Form REG 138). You can obtain it three ways: read it from the California DMV website, pick up a copy at any DMV office, or request it by mail. The form asks for your name and address, the vehicle identification number (VIN), the license plate number, the odometer reading, and the date of sale or transfer. You will also need the name and address of the person or business you sold or transferred the vehicle to.

Once you have completed the form, you can submit it by mail to the DMV address listed on the form, file it online through the DMV website if you have a California driver's license or ID, or bring it in person to any DMV office. There is no fee to file the release. If you file by mail, keep a copy for your records and consider sending it certified mail so you have proof of delivery. The DMV typically processes releases within 2 to 4 weeks.

What happens after you file the release

Once the DMV receives and processes your release, you are no longer the registered owner of that vehicle. Any violations, accidents, or registration issues that occur after your release date become the responsibility of the new owner. However, you should know that the release does not take effect when ready — there is a processing delay, usually 2 to 4 weeks. During that time, if a violation occurs, it may still arrive in your name because the DMV's records have not yet been updated.

If you receive a ticket or notice after you have filed the release, you can respond to it with a copy of your filed release form as proof that you no longer owned the vehicle at the time of the violation. Keep documentation of your sale (a bill of sale, receipt, or written agreement) along with your copy of the release form. This protects you if there is a dispute about when ownership transferred.

Selling to a private buyer versus a dealership

When you sell to a private individual, you should give them a copy of the release form you filed with the DMV. This protects both of you by creating a clear record of when the transfer occurred. The buyer will need to register the vehicle in their name within 10 days of purchase, and having a copy of your release shows the DMV that the previous owner notified them of the transfer.

When you trade a vehicle to a dealership or sell it to a used car lot, the dealership typically handles filing the release on your behalf as part of the sale process. However, you should ask the dealership to confirm they will file it and get a receipt or written confirmation. If you are unsure whether they filed it, you can file the release yourself — filing twice does not cause problems, and it ensures the DMV has the notification.

What to do if you did not file the release in time

If you sold or transferred a vehicle more than 5 days ago and did not file a release, you should file one when ready. There is no penalty for filing late, and the DMV will process it based on the date you submit it. However, any violations that occurred between the sale date and the date you file the release may still be your responsibility, depending on when the violation was reported to the DMV.

If you receive a ticket or violation notice for a vehicle you no longer own, respond to it with a copy of your release form and a bill of sale or other proof of the transfer date. Include a letter explaining that you sold the vehicle on that date and filed the release with the DMV. The citation agency or court can then contact the DMV to verify the transfer and redirect the violation to the new owner if appropriate.

Frequently Asked Questions

Do I need to file a release of liability if I trade my car to a dealership?

Dealerships typically file the release on your behalf as part of the sale, but you should confirm this in writing before you leave. If you are unsure, file the release yourself — it takes a few minutes and costs nothing. Filing twice does not cause problems.

What if the new owner does not register the vehicle in their name?

Filing a release protects you from liability for violations and accidents that occur after you sold the car, regardless of whether the new owner registers it. However, if the new owner never registers it and you receive violations, you can respond with your release form and proof of sale to show the DMV that you no longer owned the vehicle.

Can I file the release online?

Yes, you can file online through the California DMV website if you have a valid California driver's license or ID. You can also mail the form or submit it in person at any DMV office. Online filing is usually the fastest option.

How long does it take for the release to take effect?

The DMV typically processes releases within 2 to 4 weeks. During the processing period, violations may still arrive in your name because the system has not yet been updated. Keep your filed release form to respond to any violations that arrive after you sold the vehicle.

What if I lost the bill of sale or proof of the sale date?

You can still file the release — the form asks for the date of transfer, and you can provide your best estimate. If you later receive a violation and need to prove the transfer date, any written documentation (text messages, emails, a receipt, or a bank record showing the payment) can help establish when the sale occurred.