When you sell or give away a car in California, signing the title over is only half the job. The other half is telling DMV that the car is no longer yours. That notice is the Notice of Transfer and Release of Liability, form REG 138, and California gives you 5 days from the sale to file it.
This guide covers when it applies, what you need, how to file, and what to do if something goes wrong. It is general information, not legal advice.
What the release of liability does
The REG 138 tells DMV the date and time the vehicle left your hands and who took it. DMV adds that to the vehicle record. From then on, the record shows you are no longer responsible for the car.
That matters because California ties a lot of things to the owner on record:
- Parking tickets and toll violations go to the registered owner.
- Towing and storage fees if the car is abandoned or impounded.
- Liability after an accident. The Vehicle Code (sections 5900 and 5602) links your protection to having delivered the car and notified DMV of the transfer.
The release does not transfer ownership. The buyer still has to submit the signed title and pay the transfer fees and use tax. The REG 138 simply puts on record that, from a specific moment, the car was not yours.
When you need to file
File a release of liability whenever the car leaves your ownership, including when you:
- sell it to a private buyer
- sell it or trade it in to a dealer (dealers report the sale too, but filing your own notice costs nothing and gives you your own record)
- sell it to a dismantler or junkyard
- donate it to a charity
- give it to a family member
The deadline: 5 days
California Vehicle Code section 5900 requires you to notify DMV within 5 calendar days of the transfer. The easiest habit is to file it the same day, ideally before the buyer has driven away, while you still have their details in front of you.
What you'll need
Before you start, have these ready:
- the license plate number
- the last 5 digits of the VIN
- the buyer's name and address (copy them from the buyer's driver's license)
- the odometer reading at the time of sale
- the date of sale (and the time, if asked)
- the sale price, if any
Take a photo of the signed title and the bill of sale (REG 135) before the buyer leaves. If anything is disputed later, you'll want those records.
How to file
Online (recommended)
DMV's website has an online Notice of Transfer and Release of Liability. Go to dmv.ca.gov and search "release of liability". You enter the details above and get a confirmation right away. Save the confirmation page as a PDF or screenshot, and keep it with your copy of the bill of sale.
On paper
You can also fill in a paper REG 138 and mail it to DMV at the address printed on the form. Some California titles also include a tear-off release section at the bottom. Paper takes longer to reach the record and gives you no instant proof, so if you use it, keep a copy and note the date you mailed it.
Common mistakes
- Waiting for the buyer to "take care of it". The buyer transfers the title. The release of liability is the seller's job.
- Leaving the buyer section blank. Signing a title and leaving the buyer's name empty (an "open title") makes it hard to show who you sold the car to. Fill it in.
- Typos in the buyer's name or address. Copy them from the buyer's ID, not from a text message.
- Wrong date. Enter the actual date of the sale, not the date you're filing.
- Not keeping proof. The confirmation is your evidence. Save it.
- Leaving your toll tag in the car. Remove the transponder and take the plate off your toll account, or the next owner's trips may be billed to you.
What if I missed the 5-day deadline?
File it now. A late notice is much better than no notice, and it still records the actual date of sale. If you receive a ticket or toll bill from after that date, respond to the agency that issued it with a copy of your release of liability confirmation and your bill of sale.
What if the buyer never transfers the title?
Your release of liability still stands. The car stays registered in your name on paper until the buyer completes the transfer, so you may keep getting registration renewal notices. Don't pay them. If you get tickets or tolls from after the sale, contest them with your release confirmation and bill of sale. If the problem keeps coming back, contact DMV with your records.
Does it matter how the car was sold?
No. The same filing applies whether you sold through an ad, at an auction, to a dealer or to a dismantler. What changes is where you get the buyer's details:
- Private sale: from the buyer's driver's license.
- Dealer or dismantler: from the business's name and address on its paperwork.
- Online auction: from the buyer details on the sale paperwork.
Using the Auction Direct Marketplace
On the Auction Direct Marketplace (open in Los Angeles, Riverside, San Bernardino and San Diego counties), the buyer picks the car up at your home and pays you directly. Hand over the keys and the signed title only after you've been paid. Then file your REG 138 the same day using the buyer's details from the sale paperwork.
Start your listing: it's free through December 31, 2026 (normally $25, no commission). Or read our full guide on how to sell a car in California.
Quick recap
- Get the buyer's name and address from their ID at the sale.
- Write down the odometer reading and the sale date.
- File the release online at dmv.ca.gov within 5 days. Same day is best.
- Save the confirmation with your bill of sale and a photo of the signed title.
- Remove your toll tag, then cancel or move your insurance.