California has three rules that catch sellers out: who pays for the smog certificate, the five-day release of liability, and what happens when the title is missing. Here is how all of it actually works, and how to skip most of it.
Sign the title over to the buyer, hand over a smog certificate if your car needs one, and file a Release of Liability with the DMV within five days. The buyer pays the transfer fees and has ten days to register the car in their name.
That is the whole process in one paragraph. The complications come from three places: whether your car needs a smog check, whether you still have the title, and whether a lender still has an interest in the vehicle. Each is covered below.
If you sell to Vorlex, we prepare the documents, handle the DMV filing and the release of liability, and send you copies for your records. You sign the title and the bill of sale.
Usually yes, and it is the seller's cost — but there is an eight-year exemption that catches people out in both directions.
The California DMV's rule is that when you transfer ownership of a gas-powered vehicle that is 8 or less model years old, a smog certification is not required. A smog transfer fee is collected from the new owner instead. Outside that window, the seller generally has to obtain the certificate, unless a biennial smog certification was obtained within the last 90 days — in which case a Statement of Facts (REG 256) covers the exemption.
A smog certificate is only good for 90 days, so there is no point getting one months before you plan to sell.
The practical read. A 2019 or newer car almost certainly needs nothing from you. A 2015 Honda probably needs a smog certificate you pay for. An EV of any age needs none. If your car would fail a smog test, that is worth telling us up front rather than discovering at the test centre — it changes the route, not the deal.
It is the form that stops the car being legally your problem after it leaves. You have five days.
Within 5 days of releasing ownership, the seller files a Notice of Transfer and Release of Liability (REG 138) with the DMV, online or by post. It relieves you of responsibility for parking and traffic violations, and civil or criminal actions involving the vehicle, after your date of sale.
Here is the part most people miss: filing the REG 138 does not remove your name from DMV records. That only happens when the new owner submits the title, pays the fees and completes the transfer. The REG 138 is what protects you in the gap between those two events — and that gap is where the parking tickets land.
Keep your copy. Do not attach a bill of sale to it; the DMV disregards attachments.
| Form | When you need it |
|---|---|
| Certificate of Title | The normal route. Seller signs, odometer is disclosed on the title itself. |
| REG 227 | Title lost or never received. Replaces and transfers in one step. |
| REG 262 | Required from each seller if the car is sold more than once on the same title, or for odometer disclosure when using a REG 227. Not downloadable — it is a secure form you obtain from the DMV. |
| REG 256 | Statement of Facts. Covers the smog exemption, family transfers and use tax exemptions. |
| REG 138 | Release of liability. Five days, every time. |
| REG 166 | Lienholder release, when the lender is not signing the title directly. |
| REG 5 | Transfer without probate, when the owner has died. |
Odometer disclosure is required on all transfers except vehicles 20 years old or older (for 2011 and newer model years) and commercial vehicles over 16,000 lbs.
Routine, and it does not stop the sale. The lienholder has to release their interest — on the title, or on a REG 166. We contact your lender for the payoff figure, pay them directly at closing, and you receive the difference. If you owe more than the car is worth, you cover the shortfall.
Use a REG 227 and the transfer still goes through. Two things to know: if there is a lienholder, their release on a REG 227 must be notarized. And if the vehicle is 2 model years old or less with a lienholder, a REG 227 cannot be used at all — a replacement title has to come through the lienholder.
If the registered owner has been deceased 40 days or more and their California property does not exceed $150,000 in value, a REG 5 affidavit usually replaces probate. The car must be titled in California and an original death certificate is required, which the DMV returns.
| Route | Typically gets you | The catch |
|---|---|---|
| Dealer trade-in | Least money, most convenience | The discount is buried in the new-car price |
| Private sale | Most money, on paper | You handle smog, strangers, test drives and payment fraud; weeks of it |
| CarMax / Carvana | Fair on clean, late-model cars | Offers soften on high mileage, damage or anything unusual |
| Vorlex Motors | A written number in 24 hours | We will not be the best route for every car, and we will say so |
On the last line: if your car has mechanical or significant cosmetic issues, we route you to a buy partner whose network competes specifically on those vehicles and consistently pays more than we could. You get an instant online offer, free towing and payment on collection.
We are based in San Jose and buy throughout the state. Pickup is arranged with an insured transport carrier that we schedule and pay for — you do not drive anywhere and nothing is deducted from your offer for towing.
Distance affects timing, not the number. A Bay Area pickup is usually same-week; the far end of the Central Valley can add a few days.
One number, in writing, within 24 hours. No fees, no obligation, and it is the same number when the truck arrives.
Get My Offer →The buyer. The DMV is explicit that all transfer fees are the buyer's responsibility. They are due within 10 days of the sale, with penalties if not paid within 30.
Standard plates stay with the car. Disabled person, special interest and personalized plates belong to you, not the vehicle, and you must remove them. A REG 17 releases special interest or personalized plates to the buyer if you would rather they went with the car.
Yes. Names joined by OR mean either owner can sell alone. AND, or a slash, means every named owner has to sign.
Your part is done once the buyer has the documents and the DMV has your REG 138. A new title is issued to the buyer within 10 to 15 calendar days after they complete their side.
Ask your tax advisor — that is the DMV's answer and it is ours too. We are not qualified to advise on your tax position.
Every California requirement on this page comes from the DMV directly. Rules change; check the source before relying on anything here.
Page reviewed 9 October 2026. This is general information about California DMV procedure, not legal or tax advice.