What California's Transfer and Release of Liability Form Does

California's Transfer and Release of Liability form (REG 138) tells the DMV that you are no longer responsible for a vehicle you once owned. When you sell, donate, or trade in a car, you file this form to protect yourself from traffic tickets, parking violations, and accidents that happen after the new owner takes possession. Without it, the DMV may still send you notices for violations committed by the new owner.

The form works differently depending on whether you sell the vehicle to a private buyer or to a dealer. If you sell privately, you must file it yourself. If you sell to a dealer, the dealer typically handles the filing, but you should still keep a copy for your records. The form is free and takes about five minutes to complete.

Key Takeaways

  • File REG 138 within 5 days of selling your vehicle to stop receiving notices for violations the new owner commits.
  • You can file online through the DMV website, by mail, or in person at a DMV office — online is fastest.
  • If you sell to a private buyer, you are responsible for filing; if you sell to a dealer, ask them to confirm they will file it.
  • Keep proof of filing (a confirmation number or receipt) in case the DMV later sends you a violation notice from the new owner.
  • If you did not file within 5 days, you can still file late, but you may receive notices during the gap period.

When You Must File the Form

You must file REG 138 within 5 days of transferring ownership of the vehicle. This 5-day window is the DMV's grace period — if you file within it, you are protected from most liability that occurs after the sale. If you miss the important date, you can still file, but any violations or accidents that happened between the sale date and your filing date may still be your responsibility.

The clock starts on the date the new owner takes possession, not the date you sign the paperwork. If you sign the bill of sale on a Monday but the buyer does not pick up the car until Wednesday, the 5-day window begins on Wednesday. Write down the exact date the vehicle left your possession so you know your important date.

You do not need to wait for the new owner to register the vehicle or transfer the title. File the form as soon as the handoff happens, even if the buyer has not yet gone to the DMV.

How to File Online, by Mail, or In Person

The fastest way to file is through the DMV's online portal at dmv.ca.gov. You will need the vehicle's VIN, license plate number, and the date you sold it. The online form takes about three minutes and you receive a confirmation number when ready. You can print the confirmation or save it to your phone as proof.

If you prefer to file by mail, print REG 138 from the DMV website, fill it out by hand, and mail it to the address listed on the form. Include a copy of the bill of sale if you have one. Mail typically takes 7 to 10 days to reach the DMV, so your filing date is the postmark date, not the arrival date. Use certified mail if you want proof of delivery.

You can also file in person at any DMV office. Bring your driver's license, the vehicle's registration, and a bill of sale if you have one. There is no fee. The DMV will stamp your form and give you a receipt on the spot. This is the slowest option if your local office has a long wait, but it gives you when ready proof of filing.

What Happens If You Sell to a Dealer

When you sell your vehicle to a car dealer, the dealer is required by California law to file the transfer and release of liability on your behalf. You do not need to file it yourself. However, you should ask the dealer in writing (email is fine) to confirm they will file it and ask for the confirmation number once they do.

Some dealers file when ready; others wait until they resell the vehicle. If the dealer does not file within 5 days and you receive a violation notice, you can file REG 138 yourself as a backup. Keep your bill of sale and any written communication with the dealer showing the sale date, because you may need it to prove you sold the vehicle on that date.

If you are trading in a vehicle as part of a purchase, the dealer handling the trade-in will file the release of liability for the vehicle you are trading in. The dealer buying your vehicle is responsible for filing, not you.

What to Do If You Receive a Violation Notice After Selling

If you receive a traffic ticket, parking citation, or accident notice after you sold the vehicle, the first step is to check whether you filed REG 138 within 5 days. If you did, contact the DMV with your confirmation number and explain that you sold the vehicle. The DMV can usually clear the violation from your record once they verify the filing date.

If you filed late or did not file at all, you have two options. You can file REG 138 now and send a copy to the agency that issued the notice (the police department, parking authority, or insurance company). Include a letter explaining that you sold the vehicle on a specific date and did not file the release within the 5-day window. Many agencies will dismiss the violation once they see proof of the sale and the late filing.

If the violation is a traffic ticket with a court date, you may need to appear in traffic court or respond in writing to contest it. Bring your bill of sale, the REG 138 filing confirmation, and any other proof that you no longer owned the vehicle when the violation occurred. The judge can dismiss the ticket if you show you sold the car before the violation happened.

Protecting Yourself When You Sell Privately

When you sell to a private buyer, take steps to document the sale and protect yourself. Write a bill of sale that includes the vehicle's VIN, license plate, the sale price, the date of sale, and both your name and the buyer's name. Both you and the buyer should sign and date it. Keep a copy for yourself.

Do not hand over the keys or let the buyer take the vehicle until you have filed REG 138 or at least confirmed you will file it within 5 days. If the buyer wants to drive the car away when ready, file the form online before they leave — it takes three minutes and you get a confirmation number right away.

Ask the buyer to bring the vehicle to the DMV within 10 days to transfer the title into their name. If they do not, the vehicle will still be registered to you and you may receive notices. You cannot force them to register it, but filing REG 138 protects you from liability for accidents and violations that occur after the sale date, even if they never register it.

What Happens to Your Registration and Insurance

Filing REG 138 does not automatically cancel your vehicle registration or insurance. You must cancel your insurance separately by calling your insurance company and telling them you sold the vehicle. Provide the sale date and the buyer's name if you have it. Your insurance company will cancel your policy or remove that vehicle from your policy, depending on whether you own other vehicles.

Your vehicle registration remains active until it expires or you formally surrender it. You do not have to surrender it, but if you want to, you can return your license plates to the DMV and request a refund of any remaining registration fees. This is optional — many people keep the registration on file without renewing it.

If you did not cancel your insurance and the new owner gets into an accident, your insurance company may deny the claim because you no longer own the vehicle. This is why canceling insurance is important, even though it is separate from filing REG 138.

Frequently Asked Questions

What if I lost the bill of sale or never got one from the buyer?

You can still file REG 138 without a bill of sale. The form only requires the vehicle's VIN, license plate, and the date you sold it. If you do not have the VIN or plate number, look at your old registration or insurance documents. If you later need to prove the sale date, a bank record showing a deposit from the buyer or text messages about the sale can serve as backup proof.

Can I file REG 138 if I gave the vehicle to someone as a gift?

Yes. A gift is still a transfer of ownership. File REG 138 within 5 days and list the gift recipient's name on the form if there is a space for it. You may also want to create a straightforward written statement saying you gave the vehicle to that person on a specific date, signed by both of you, to have as proof if questions come up later.

What if the new owner never registers the vehicle?

Filing REG 138 protects you from liability even if the new owner never registers the vehicle. The form tells the DMV that you no longer own it as of the sale date. However, if the new owner drives without registering it and gets pulled over, the officer will see the vehicle is still registered to you. The new owner is responsible for registering it, not you, but you may want to follow up with them if weeks pass and they have not done so.

Do I need to file REG 138 if I sell the vehicle out of state?

If you sell a California-registered vehicle to someone who will register it in another state, file REG 138 with California. The form protects you from California liability. The new owner will handle registration in their state. If you sell a vehicle that is already registered in another state, follow that state's process for releasing liability, not California's.

How long does it take for the DMV to process REG 138?

If you file online, the DMV processes it when ready and you get a confirmation number. If you file by mail, processing takes 7 to 10 business days after the DMV receives it. If you file in person, you get a receipt on the spot. The important date is your filing date, not the processing date — you are protected from liability as of the date you file, even if the DMV processes it later.