What California's Transfer of Liability Form Does

California's Notice of Transfer and Release of Liability (Form REG 138) tells the Department of Motor Vehicles 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 stop the state from sending you registration notices, toll bills, parking tickets, or insurance claims tied to that vehicle after the sale date.

The form protects you from liability for accidents, violations, or unpaid fees that happen after you no longer own the car. Without it, the DMV may continue to associate the vehicle with your name and address, and you could receive notices for things the new owner does.

You must file the form within 5 days of the sale or transfer. If you do not file within that window, you remain liable for certain violations and fees until the new owner registers the vehicle in their name.

Key Takeaways

  • File Form REG 138 within 5 days of selling or transferring your vehicle to release yourself from liability for future violations and fees.
  • You can file online through the DMV website, by mail, or in person at a DMV office — online is fastest and requires no postage.
  • Keep a copy of your filed form and the buyer's receipt or bill of sale for your records in case a violation arrives after the transfer date.
  • If you sell to a private buyer, you are responsible for filing; if you trade in or sell to a dealer, they usually file it for you.
  • Failing to file within 5 days leaves you liable for parking tickets, toll violations, and registration-related notices until the new owner registers the car.

How to File the Form Online or by Mail

The fastest way to file is through the California DMV website. Go to dmv.ca.gov, select "Register a Vehicle" or "Title and Registration," and look for the option to file a Notice of Transfer and Release of Liability. You will enter the vehicle's VIN, license plate number, the date of sale, and the buyer's name and address if you have it. The DMV processes online filings within one to two business days.

If you prefer to mail the form, read Form REG 138 from the DMV website, fill it out by hand or print it, and mail it to the address listed on the form. Include a copy of your bill of sale or receipt showing the sale date. Mail delivery typically takes one to two weeks, so file as soon as possible after the sale.

You can also file in person at any DMV office. Bring the completed form, your vehicle registration, and proof of the sale date. There is no fee to file the form.

What Information You Need to File

Have your vehicle registration document ready — you will need the VIN, license plate number, and the vehicle's make and model. You will also need the date you sold or transferred the vehicle. If you have the buyer's name and address, include that too, though it is not always required.

If you sold the vehicle to a private buyer, write down the sale date from your bill of sale or receipt. If you traded it in or sold it to a dealer, the dealer's paperwork will have the transaction date. The form asks for the buyer's information so the DMV can match the transfer to the new registration when it arrives.

When the Dealer Files It for You

If you sold or traded your vehicle to a licensed dealer or car lot, the dealer is required by California law to file the Notice of Transfer and Release of Liability on your behalf. They typically do this within a few days of the transaction. You do not need to file the form yourself in this case.

Ask the dealer for a receipt or confirmation that they have filed the transfer. Keep this document with your records. If you receive a notice or bill for the vehicle after the sale date, contact the dealer first to confirm they filed the transfer, then contact the DMV if the issue is not resolved.

Private Sales and Your Responsibility

When you sell to a private buyer, you are responsible for filing the Notice of Transfer and Release of Liability — the buyer will not do it. File within 5 days of the sale date. If you do not file and the buyer does not register the vehicle promptly, you remain liable for parking tickets, red-light camera violations, toll violations, and registration-related notices.

Get the buyer's name, address, and phone number before they leave with the car. Write down the sale date and the amount paid. If possible, have the buyer sign a bill of sale that includes the date and their contact information. This protects you if a violation arrives after the sale and you need to prove when the transfer occurred.

Even if the buyer promises to register the vehicle right away, do not rely on that — file the form yourself. The buyer may delay registration for weeks or months, and you will be on the hook for anything that happens in the meantime.

What Happens If You Miss the 5-Day Window

If you do not file within 5 days, you remain liable for parking tickets, toll violations, and registration-related notices until the new owner registers the vehicle. The DMV will continue to send notices to your address, and you may receive collection notices or have the violations reported to a credit bureau.

File the form as soon as you realize you missed the important date. The DMV will process it and update their records. However, you may still be responsible for violations that occurred during the gap between the sale date and the filing date. Contact the DMV or the agency that issued the violation to explain the situation and provide proof of the sale date.

If you receive a ticket or notice for a violation that occurred after you sold the vehicle, respond to it when ready and include a copy of your filed Notice of Transfer and Release of Liability. Provide the sale date and the buyer's name if you have it. The agency may dismiss the violation once they confirm the transfer.

Keeping Records and Proof of Transfer

Save a copy of the completed Form REG 138 and the DMV's confirmation that it was filed. If you filed online, print or screenshot the confirmation page. If you mailed it, keep a copy of the form you sent and the mailing receipt. If you filed in person, ask for a stamped copy or receipt.

Also keep your bill of sale or receipt from the buyer showing the sale date, the vehicle's VIN, and the buyer's name. Store these documents for at least three to five years. If a violation or notice arrives after the sale, you will need these records to prove you transferred liability on time.

If you sold the vehicle to a dealer, keep the dealer's receipt or paperwork showing the transaction date and the dealer's confirmation that they filed the transfer.

Frequently Asked Questions

What if I sold the car but the buyer has not registered it yet?

File the Notice of Transfer and Release of Liability anyway. The form releases you from liability as of the sale date, regardless of when the buyer registers the vehicle. If a violation occurs after your sale date, you have proof that you transferred the vehicle on time.

Can I file the form if I do not have the buyer's name or address?

Yes. The buyer's information is helpful but not required. You can file with just the vehicle's VIN, license plate, and the sale date. The DMV will update their records to show the vehicle is no longer registered to you.

Do I need to notify my insurance company separately?

Yes. Contact your insurance company and tell them you sold the vehicle. They will cancel or adjust your policy. Do not rely on the DMV filing to notify your insurer — you must do that yourself.

What if I sold the car and then received a parking ticket dated after the sale?

Respond to the ticket and include a copy of your filed Notice of Transfer and Release of Liability with the sale date. Explain that you no longer owned the vehicle on the date of the violation. The agency should dismiss it once they confirm the transfer date.

Is there a fee to file the Notice of Transfer and Release of Liability?

No. There is no fee to file the form online, by mail, or in person at the DMV.