Paperwork
4 min read
California has three seller rules that catch people out. The title has to be signed correctly, most cars need a recent smog certificate, and you must tell the DMV within 5 days that you sold the car. Here is each step, from the California DMV and the Bureau of Automotive Repair.
Step 1: Sign the title
The California Certificate of Title is the document that shows who owns the car. In a private sale, the seller signs the title and the buyer submits it to the DMV. If there is a loan on the car, the lienholder signs as well, and once the loan is paid the lender releases its interest.
Fill in the odometer reading where the title asks for it. Federal rules require a written mileage statement for cars from model year 2011 on until they are 20 years old.
If the title is missing, the DMV lists form REG 227 for the transfer. Sort this out before sale day.
The DMV says any change of ownership must be reported within 10 days. In a private sale, that filing is the buyer’s job, but your own notice in Step 3 is separate and still yours to do.
Step 2: Provide a smog certificate
The DMV is direct about this: if you are selling your car, you need to give the new owner a valid smog certification. The Bureau of Automotive Repair says a Smog Check is required when a vehicle changes ownership, and asks sellers to give the buyer a copy of the inspection report.
How long a certificate lasts
A smog certificate is valid for 90 days after the car passes. A buyer from a private seller needs a pass from within the last 90 days, so time the test close to the sale.
Cars that don’t need one at sale
The Bureau of Automotive Repair lists these as not needing a Smog Check on a change of ownership:
Gasoline, hybrid and alternative-fuel cars four model years old and newer. The new owner pays a smog transfer fee to the DMV instead.
Electric vehicles.
Diesel vehicles from model year 1997 and older, or with a gross vehicle weight rating over 14,000 pounds.
Gasoline, hybrid and alternative-fuel vehicles from model year 1975 and older.
Motorcycles.
A transfer between immediate family members also doesn’t need a Smog Check.
If you sell to a business
The rule puts the certificate on the seller. When you sell to a dealer or to a company that buys cars, ask in writing who arranges the smog check and who pays for it, before you set the pickup date.
Step 3: Report the sale within 5 days
Send the DMV a Notice of Transfer and Release of Liability, often called an NRL, within 5 calendar days of the sale.
What you need
The license plate number
The VIN, or its last five digits
The make and model year
The buyer’s name and address
The odometer reading at the sale
The date of sale
Your name and address
How to send it
Online: use the DMV’s NRL service and save the confirmation. The DMV says the record is updated within 1 business day.
By mail: fill in form REG 138 and mail it to the address on the form. Keep a photocopy.
Why it matters
Once the DMV has your notice, liability for parking violations, traffic violations and civil litigation after the sale date moves to the buyer, and you stop getting renewal notices for the car. The notice does not take your name off the record. Only the buyer’s transfer application does that, which is why both steps matter.
Other forms you may meet
The DMV lists other forms that can come up in a transfer:
Form | What it is |
|---|---|
REG 135 | Bill of Sale |
REG 139 | Vehicle Emission System Statement |
REG 166 | Lien Satisfied/Title Holder Release |
REG 227 | Used when the title is missing |
Trading in versus selling in California
In some states, a trade-in lowers the sales tax on your next car. California is not one of them: the trade-in allowance can’t be deducted from the taxable price. So in California, a trade-in has no sales tax edge over selling the car outright, and the comparison comes down to the price, the time and the effort.
A California seller’s checklist
Title signed in the seller’s section, or your lender’s details if there is a loan
A smog certificate from the last 90 days, unless your car is exempt
The exact odometer reading
A bill of sale if you use one, with a copy for you
Your NRL sent within 5 days, with the confirmation saved
Selling a California car to Auto Exit
We are based in Los Angeles and pick up anywhere in California and the rest of the US. Your offer comes in about two minutes and is held for 7 days. At pickup we collect the signatures we need, pay your lender directly if there is one, and pay you by bank transfer before the car leaves. There are no fees. {{PLACEHOLDER: who arranges and pays for the smog check on California sales}}
