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California

Updated

When you sell a vehicle in California, it is important to properly transfer the title to the new owner to ensure the sale is legal and the car is no longer associated with you. Below is a step-by-step guide to help you understand the process of transferring the title after selling a car in California.

What You Need to Transfer the Title in California

Before you transfer the title, gather the following documents and information:

  1. Vehicle Title (Certificate of Title):

    • The title document must be in your name, and you should have the original title (not a copy).
    • If the title is lost or damaged, you will need to request a duplicate title from the California Department of Motor Vehicles (DMV).

  2. Bill of Sale (Optional but Recommended):

    • A bill of sale is not required by the California DMV but is strongly recommended for both parties for proof of the transaction. The bill of sale should include:
      • The vehicle’s make, model, and VIN (Vehicle Identification Number).
      • The date of sale.
      • The sale price.
      • Both the seller's and buyer's names and addresses.
      • Odometer reading at the time of sale (if the vehicle is less than 10 years old).

  3. Smog Certification (If Applicable):

    • If the vehicle is more than 4 years old, you may need to provide a valid smog certificate, unless the vehicle is exempt (e.g., electric vehicles, hybrids, or certain diesel vehicles).
    • The certificate must be issued within the last 90 days before the sale.

  4. Release of Liability:

    • After you sell the vehicle, you must submit a Notice of Transfer and Release of Liability (NRL) form to the DMV to notify them that you are no longer responsible for the vehicle.
    • This form can be completed online, mailed, or submitted in person at the DMV.

  5. Odometer Disclosure Statement:

    • If the vehicle is less than 10 years old, federal law requires an odometer reading to confirm the mileage at the time of the sale. This is typically done on the title itself.

  6. Proof of Insurance (Optional for the Buyer):

    • The buyer will need to provide proof of insurance when they register the vehicle.

Steps to Transfer the Title After Selling the Vehicle

1. Complete the Title Transfer Section

  • On the back of the title document, you will find a Title Transfer section. As the seller, you must:
    • Sign your name as the seller.
    • Fill in the buyer’s information (name, address, and signature).
    • Include the date of sale and the purchase price.

2. Provide the Odometer Disclosure

  • If the vehicle is under 10 years old, the seller must complete the odometer disclosure section on the title or provide a separate Odometer Disclosure Statement.

3. Submit the Release of Liability

  • As the seller, you are required to submit the Notice of Transfer and Release of Liability (NRL) to the California DMV. This form informs the DMV that you no longer own the vehicle and are not responsible for it.
    • This can be done online, or you can mail in the form within 5 days of the sale.
    • Submitting this form protects you from any future liability associated with the vehicle.

4. Give the Buyer the Required Documents

  • Provide the buyer with the signed title, bill of sale, smog certification (if applicable), and any other necessary documents.

5. Buyer Registers the Vehicle

  • The buyer must take the signed title, smog certificate, and proof of insurance to the DMV to complete the vehicle registration process.
    • The DMV will issue new title and registration in the buyer’s name.

Additional Considerations

  • Smog Exemptions: Some vehicles may not require a smog certificate, such as hybrid vehicles, electric cars, or cars newer than 4 years old. Check the California DMV website or consult with the buyer to determine if a smog certificate is required.

  • Selling to a Dealer: If you are selling your car to a licensed dealer, they will handle the title transfer paperwork and release of liability on your behalf.

  • Title Loan or Lien: If the car has a lien (e.g., if you have a loan on the vehicle), the lien must be satisfied before the title can be transferred. This often involves paying off the remaining loan balance and obtaining a lien release from the lender.

  • No Title?: If the title is lost or damaged, you can apply for a duplicate title from the DMV before proceeding with the sale. If you are unable to obtain the title, you may need to contact the DMV for further instructions.

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