What the Notice of Transfer and Release of Liability Does

California's Notice of Transfer and Release of Liability (Form REG 138) is the document you file with the DMV to officially remove yourself from responsibility for a vehicle you no longer own. When you sell a car, trade it in, or give it away, filing this form protects you from liability for accidents, parking tickets, and registration violations that happen after the transfer date — even if the new owner never registers it in their name.

The form tells the DMV exactly when your ownership ended and the buyer's began. Without it, you remain the registered owner in the state's system until someone else registers the vehicle, which can take weeks or months. During that gap, tickets and accidents are your legal problem, not theirs.

Key Takeaways

  • You must file the Notice of Transfer and Release of Liability within 5 days of selling or transferring the vehicle, or face potential liability for violations that occur after the sale.
  • The form requires the buyer's name and address, the vehicle identification number (VIN), the odometer reading, and the date of transfer — information you should collect before the buyer leaves.
  • You can file online through the DMV website, by mail, or in person at any DMV office; online filing is the fastest and creates an when ready record.
  • If the buyer does not register the vehicle and commits violations in your name, you can dispute them by showing your filed Notice of Transfer form as proof you no longer owned it.

The 5-Day Filing Window and Why It Matters

California law requires you to file the Notice of Transfer within 5 days of the sale or transfer. This important date is strict, and missing it leaves you exposed. If the new owner gets a parking ticket, causes an accident, or drives without insurance during the gap between your sale and their registration, you are still the registered owner on file — which means the ticket or lawsuit comes to you first.

The 5-day window starts the moment the buyer takes possession and you hand over the keys and title. Even if you file on day 6, you have technically violated the requirement, though the DMV will still accept late filings. The safest approach is to file the same day as the sale or the next business day. If you are selling to a dealer or trading in, they are responsible for filing their own transfer notice, but you should still file yours to create a clear record of when you released liability.

What Information You Need to Collect From the Buyer

Before the buyer leaves with the vehicle, write down their full legal name, current mailing address, and phone number. You will also need the vehicle's VIN (from the title or dashboard), the exact date of transfer, and the odometer reading at the time of sale. If the buyer is a business or dealer, get their business name and address instead. Have the buyer sign the title in your presence so there is no question about when the transfer occurred.

If you are selling to a private party and they refuse to provide an address or seem evasive, do not hand over the keys until you have their information in writing. This is your only protection if they later cause damage or violations. For trade-ins, the dealer will provide their information on the paperwork; you just need to note the date and odometer reading yourself.

How to File Online, by Mail, or In Person

Online filing is the fastest option. Go to the California DMV website, select "Register a Vehicle" or "Title and Registration," and look for the Notice of Transfer option. You will enter the buyer's information, your vehicle details, and the transfer date. The system generates a confirmation number when ready, and the DMV records your filing that same day. This creates the strongest proof that you filed on time.

Mail filing takes longer but works if you prefer paper. Print Form REG 138 from the DMV website, fill it out completely, and mail it to the address listed on the form (usually your local DMV office). Include a copy of the signed title if possible. Mail takes 1 to 2 weeks to arrive and be processed, so file early in the week to avoid weekend delays. Keep a copy for your records and consider using certified mail so you have proof of delivery.

In-person filing at a DMV office is when ready but requires a trip. Bring the completed form, your ID, and the signed title. The clerk will process it on the spot and give you a stamped copy as proof. This is the best option if you are selling the vehicle on a Friday or near a holiday when mail delays are likely.

What Happens If the Buyer Never Registers the Vehicle

If the new owner does not register the car in their name and a parking ticket or accident occurs in your name, you can dispute it by showing your filed Notice of Transfer. The DMV record proves you were no longer the owner on the date the violation occurred. Contact the issuing agency (parking enforcement, police, or insurance company) and provide a copy of your filed notice and the transfer date. Most will dismiss the ticket or claim once they see the evidence.

This is why filing online or in person is better than mailing: you get an when ready confirmation number or stamped copy that proves the exact date you filed. If you mailed the form and it arrived late, you may have a harder time disputing violations that occurred between the sale date and the filing date. Keep your confirmation or stamped copy for at least three years, since violations can surface long after the sale.

Selling to a Dealer or Trading In

When you trade in or sell to a licensed dealer, the dealer is responsible for filing their own Notice of Transfer with the DMV. However, you should still file your own Notice of Transfer on the same day to create a clear record in your name. The dealer's filing protects them; your filing protects you. Both can exist in the DMV system without conflict.

Ask the dealer for a receipt or written confirmation that shows the date of transfer and the vehicle's VIN. This serves as backup documentation if questions arise later. Some dealers provide a form that you both sign; keep a copy. If the dealer goes out of business or fails to file their notice, your filing ensures the DMV knows you released liability on that specific date.

Frequently Asked Questions

What if I sold the car but the buyer has not registered it yet and I got a ticket in my name?

Contact the agency that issued the ticket and provide a copy of your filed Notice of Transfer and the transfer date. The DMV record proves you were no longer the owner when the violation occurred. Most agencies will dismiss the ticket once they verify the filing date. If they do not, you can dispute it in traffic court using the Notice of Transfer as evidence.

Can I file the Notice of Transfer online if I sold the car to someone out of state?

Yes. The form works the same way regardless of where the buyer lives. Enter their out-of-state address on the form. California's DMV will record the transfer, and you are protected from liability in California. The buyer will need to register the vehicle in their own state, but that is their responsibility, not yours.

What if I lost the title and cannot get the buyer to sign it?

Contact the California DMV to request a duplicate title before you sell. If you have already sold the car without the title, file the Notice of Transfer anyway with the buyer's information and the transfer date. The form itself documents the transfer even without a signed title. Follow up with the DMV by phone to explain the situation and ask them to note it in the file.

Do I need to file a Notice of Transfer if I give the car to a family member?

Yes. Gifting a vehicle is still a transfer of ownership, and you must file the Notice of Transfer within 5 days. The process is the same: provide the recipient's name, address, and the transfer date. This protects you if the family member causes violations or accidents before they register the car in their name.

How long does it take for the DMV to process the Notice of Transfer?

Online filings are recorded when ready and you receive a confirmation number the same day. Mail filings take 1 to 2 weeks depending on postal delivery and DMV processing time. In-person filings are processed on the spot. The filing date is what matters legally, not the processing date, so file as soon as possible after the sale.