What the Notice of Transfer and Release of Liability Does

California's Notice of Transfer and Release of Liability is a form you file with the DMV to tell the state you no longer own a vehicle. It protects you from liability for accidents, parking tickets, and toll violations that happen after you sell or give away the car — but only if you file it correctly and on time. The form is also called an REG 138, which is its official DMV name.

When you sell a car in California, you are responsible for anything that happens to it until the new owner registers it in their name. If the buyer gets into an accident and does not have insurance, or racks up parking tickets before transferring the title, those debts can come back to you. Filing the Notice of Transfer and Release of Liability cuts that chain of responsibility.

The state does not automatically know you sold the car just because the buyer registered it. You have to tell them yourself, in writing, within a specific window. If you skip this step, you remain the registered owner in the DMV's system, and you can be held liable for the vehicle's use.

Key Takeaways

  • You must file the Notice of Transfer and Release of Liability within 5 days of selling or giving away your vehicle, or you remain liable for what happens to it.
  • You can file the form online through the California DMV website, by mail, or in person at a DMV office — online is fastest and leaves a time-stamped record.
  • The form requires the buyer's name and address, the vehicle identification number (VIN), the odometer reading, and the sale date.
  • If you sell to a dealer, the dealer files this form for you, so you do not need to do it yourself.
  • If you do not file and the new owner causes damage or debt, you may have to prove the sale in court to remove yourself from liability.

When You Must File and the 5-Day Window

California law requires you to file the Notice of Transfer and Release of Liability within 5 days of the sale. The clock starts the day after you hand over the keys and sign the title. If you sell on a Monday, you have until the following Saturday to file. Weekends and holidays do not extend the important date — the DMV counts calendar days, not business days.

The 5-day window is strict. If you file on day 6, you have already lost the protection the form provides. The DMV will process it, but you will not have the documented proof that you notified the state on time. If something happens to the car on day 6 or later, and the new owner has not yet registered it, you could still be held responsible.

If you miss the 5-day important date, you can still file the form — it is never too late to notify the DMV that you sold the vehicle. But you lose the liability protection that comes with filing on time. The form becomes a record that you eventually told the state, which may help you in a dispute, but it does not erase the gap when you were liable.

How to File Online, by Mail, or In Person

The fastest and safest way to file is online through the California DMV website. You can complete the Notice of Transfer and Release of Liability form on your computer, and the DMV will time-stamp your submission. This creates an official record of when you filed, which protects you if there is ever a dispute about whether you notified the state on time. The online form takes about 5 minutes and costs nothing.

To file online, go to the California DMV website, find the Notice of Transfer and Release of Liability form, and enter the vehicle information and buyer's details. You will need the VIN, the sale date, the odometer reading, and the buyer's name and address. You do not need to print or sign anything — the online submission is legally valid. The DMV will send you a confirmation email with a reference number.

If you cannot file online, you can mail the form to the DMV. read the REG 138 form from the California DMV website, fill it out by hand, sign it, and mail it to the address listed on the form. Mail takes longer — allow 1 to 2 weeks for the DMV to receive and process it. Your filing date is the date the DMV receives the form, not the date you mail it, so do not wait until day 4 to put it in the mail.

You can also file in person at any California DMV office. Bring the completed REG 138 form, your driver's license, and proof of the sale (the bill of sale or signed title). The DMV will stamp it with the date received and give you a copy. This is the slowest option if you have to travel to an office, but it gives you an when ready receipt.

What Information You Need to Provide

The Notice of Transfer and Release of Liability form asks for specific details about the sale. You will need the vehicle's VIN (the 17-character identification number on the title and dashboard), the license plate number, the sale date, and the odometer reading at the time of sale. You will also need the buyer's full name and mailing address.

If you sold the car to a private buyer, use their legal name and the address where they live. If you sold to a business or dealer, use the business name and their official address. The DMV uses this information to cross-reference the sale with the new registration, so accuracy matters — if the name or address does not match what the buyer puts on their registration, the DMV may not connect the two and you could remain liable.

You do not need to provide the purchase price, the buyer's phone number, or a copy of the bill of sale with the form itself. However, keeping your own copy of the bill of sale is important — it is your proof that the sale happened on a specific date, and you may need it if there is a dispute.

When the Dealer Files It for You

If you sold your car to a licensed dealer — a car lot, not a private buyer — the dealer is required by law to file the Notice of Transfer and Release of Liability on your behalf. You do not need to do it yourself. The dealer files the form as part of their normal business process when they resell the vehicle or prepare it for auction.

Because dealers file so many of these forms, they usually do it quickly and correctly. However, you should still ask the dealer for written confirmation that they have filed it, or ask for the reference number. If something goes wrong later and the form was never filed, you need proof that you asked them to do it. Get the dealer's name, the date of the sale, and ideally a receipt or email confirming the transaction.

If you sold to a dealer and want to verify that they filed the form, you can contact the California DMV and provide your vehicle's VIN and the sale date. The DMV can tell you whether a Notice of Transfer and Release of Liability has been filed for that vehicle.

What Happens If You Do Not File

If you do not file the Notice of Transfer and Release of Liability, you remain the registered owner in the DMV's system. This means you can be held liable for anything that happens to the vehicle after the sale. If the new owner gets into an accident and does not have insurance, the injured party can sue you. If they rack up parking tickets or toll violations, those notices will come to your address. If the car is used in a crime, law enforcement may contact you.

You can defend yourself by proving that you sold the car — the bill of sale and the title transfer are evidence — but you will have to go to court or deal with debt collectors to do it. This is expensive and time-consuming. Filing the form takes 5 minutes and prevents the problem entirely.

If you discover that you never filed and the new owner has caused damage or debt, you can file the Notice of Transfer and Release of Liability when ready. It will not erase the liability that already exists, but it will prevent future liability from accruing. You may also need to provide the bill of sale and other proof of the sale date to show that you notified the state as soon as you realized the problem.

Scams and Safety Alerts

Do not pay anyone to file this form for you. The Notice of Transfer and Release of Liability is free to file, and you can do it yourself in minutes online. Scammers sometimes advertise services that claim to handle DMV paperwork for a fee, and they may take your money without actually filing the form. The only exception is if you hire a licensed attorney or a DMV-authorized service to handle your entire vehicle sale, but even then, you should verify that the form was actually filed.

Do not assume the buyer will file their registration quickly. Even if the buyer promises to register the car right away, you cannot rely on that. File your Notice of Transfer and Release of Liability yourself within 5 days, regardless of what the buyer says they will do. The buyer's registration and your notice are two separate transactions, and you are responsible for your part.

Be cautious about sharing your personal information online. The DMV's official website is dmv.ca.gov. If you are filing online, make sure you are on the real DMV site and not a third-party service that charges a fee. Check the URL in your browser — it should start with "dmv.ca.gov", not something like "dmvservices.com" or "californiadmvhelp.com".

Frequently Asked Questions

What if I sold the car but do not have the buyer's address?

You need the buyer's address to file the form. If you have a bill of sale, it should have their address on it. If you do not have it, contact the buyer and ask for it. You cannot file the Notice of Transfer and Release of Liability without it, so do this before the 5-day important date expires. If you cannot reach the buyer, file the form with whatever information you have and include a note explaining the situation.

Can I file the form if the buyer has not registered the car yet?

Yes. In fact, you should file it when ready after the sale, whether or not the buyer has registered it. The form tells the DMV that you sold the vehicle, and it protects you from liability while the buyer is in the process of registering it. You do not have to wait for the buyer to complete their paperwork.

What if I sold the car to someone out of state?

File the Notice of Transfer and Release of Liability with the California DMV anyway. California is your state of registration, so you must notify California that you no longer own the vehicle. The buyer will register it in their own state, but that does not affect your obligation to file in California. Use the buyer's out-of-state address on the form.

Do I need to file if I gave the car away instead of selling it?

Yes. Whether you sold the car, gave it away, or donated it, you must file the Notice of Transfer and Release of Liability within 5 days. The form protects you from liability regardless of whether money changed hands. Use the recipient's name and address on the form.

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

You can still file the Notice of Transfer and Release of Liability. The form does not require the title — it only requires the VIN, sale date, and buyer's information. However, the buyer will have trouble registering the car without a title. You should contact the California DMV to request a duplicate title before you sell the car, or work with the buyer to resolve the title issue. Filing the notice protects you from liability while the title situation is being sorted out.