How To Sell a Car in California

Selling a motor vehicle in California requires a properly endorsed certificate of title, any supporting transfer forms required for the transaction, a seller notice to the state, and a buyer submission to the California Department of Motor Vehicles (DMV), which is the agency responsible for vehicle titling and registration.

What You Need To Know Before Selling a Car in California

California Title Law and Ownership Requirements

California transfer law is built around the certificate of ownership. Under Vehicle Code section 5600, a transfer of title or interest in a registered vehicle does not become effective until the transferor properly endorses and delivers the certificate of ownership or the appropriate transfer documents are delivered to DMV. For an ordinary private-party sale, the transaction will be completed on the California title, sometimes called the pink slip.

If more than one owner appears on the title, the signature requirements depend on how ownership is shown on DMV records. The state's replacement or transfer title form requires that co-owners joined by "AND" must each sign, while co-owners joined by "OR" may transfer with a single signature.

Vehicles Exempt from Title Requirements

For routine private-party sales of passenger vehicles, the California DMV does not publish a general age-based exemption from the requirement for ownership documentation. Instead, the transaction proceeds under the California title; if that title is missing, damaged, or unavailable, the transfer ordinarily shifts to the state's replacement-title process through REG 227.

Satisfying an Existing Lien

A recorded lien should be resolved before the vehicle is offered as a clean private-party transfer. California uses an Electronic Lien and Title program for many lienholders, and once the lien is satisfied, the DMV either issues a title to the registered owner or records the new legal owner, depending on the transaction.

In some lien-release situations involving a vehicle that is two model years old or newer, the California certificate of title is the only acceptable release document. That makes payoff timing and title availability important considerations before the sale is finalized.

Inspection, Emissions, or VIN Verification Requirements

California requires a valid smog certification for most vehicle sales. For vehicles less than 4 model years old, a new smog inspection is not required; instead, the buyer pays an $8 smog transfer fee when registering the vehicle. For vehicles four model years or older, the seller should obtain a valid smog inspection to provide to the buyer at the time of transfer.

For a standard California-titled private-party sale, DMV does not require a routine VIN verification step. Instead, private-party transfers focus on the title, odometer mileage, bill of sale (when needed), smog certification, fees, and use tax.

Situations Involving Lost Titles, Duplicate Titles, or Title Correction

If the title has been lost, stolen, mutilated, or never received, the DMV allows a transfer through the Application for Replacement or Transfer of Title. CHP verification is required if a title was replaced within the past 90 days.

If the owner's name on the title is incorrect or has changed, DMV permits correction through the title or REG 227 together with a Statement of Facts. No fee is due solely for the correction itself, although duplicate title fees may still apply if a replacement document is needed.

Documents Required To Sell a Car in California

Certificate of Title

The certificate of title is the primary ownership document in a California private-party sale. The seller completes the assignment section and signs the release line on the title.

The title identifies the vehicle and its recorded owners and serves as the central transfer document. California's standard title assignment does not require notarization for an ordinary seller's signature. If the title is unavailable, transfer can proceed through REG 227, but a legal owner release completed in Section 5 of that form must be notarized.

Bill of Sale

A Bill of Sale (REG 135) records the transfer date, parties, and price. DMV's REG 135 includes the vehicle identification number, model year, make, plate number, seller's name, buyer's name, date of sale, sale price, gift value (if applicable), seller's signature, and address information.

Any bill of sale identifying the vehicle is acceptable, and notarization or witnessing is not required. A separate bill of sale is especially important when the physical seller is not the owner named on the title, because the DMV requires a signed bill of sale from both the seller and the titled owner.

Odometer Disclosure Statement

California requires an odometer mileage record for vehicles less than 10 years old. If the title does not include a place to record mileage, the parties must complete REG 262.

The form is used for odometer disclosure when the title is unavailable, when REG 227 is part of the application, when there are multiple transfers, or when the odometer section on the title contains an error. The odometer disclosure must be completed in ink at the time of sale and signed by both the buyer and the seller.

Smog Certification, Lien Release, and Other State-Specific Forms

A valid smog certification is required for most sales. For vehicles four model years or older, the seller should obtain a current smog inspection before the sale. For vehicles less than four model years old, the seller should provide any available smog certification; the buyer will pay a smog transfer fee instead of obtaining a new inspection.

If a lien remains on the record, the legal owner's interest must be released via the title, the ELT system, or a DMV-accepted lien release such as REG 166, depending on the transaction type and vehicle status. In transactions involving a missing title, corrected owner information, or tax-exemption claims, DMV may also require forms such as REG 227 or REG 256.

How To Transfer a Car Title in California

Step 1: Confirm Title Status and Ownership

Before the sale is completed, confirm that the seller is the owner shown on the title and that all required co-owner signatures are available. If the title has been lost or damaged, the transfer should move to the replacement-title process using REG 227 rather than proceeding on an unavailable original.

Step 2: Complete the Title Assignment

The seller signs the California title and completes the ownership assignment section. California law, through Vehicle Code section 5600, makes proper endorsement and delivery of the ownership document central to an effective transfer.

Step 3: Prepare the Bill of Sale if Needed

A bill of sale should be prepared if the titled owner and the physical seller are not the same person, if the title assignment is incomplete, or if the parties want a separate written record of price and date. DMV accepts REG 135 for that purpose, and the document is not required to be notarized.

Step 4: Complete the Odometer Disclosure

If the vehicle is less than 10 years old, record the mileage on the title when the title has a compliant odometer section. If that section is absent, unavailable, or unusable, the parties should complete REG 262 at the time of sale and sign it in ink.

Step 5: Resolve Any Lien and Obtain Smog Certification

A recorded lien should be released before delivery of the transfer package. For vehicles four model years or older, the seller should have a current smog certification ready. For vehicles less than four model years old, the seller should provide any available smog certification. A smog transfer fee is collected at the time of registration.

Step 6: Deliver the Transfer Documents to the Buyer

The buyer should receive the endorsed title, the bill of sale, if required, the odometer disclosure, if required, the smog certification, if applicable, and any lien release or replacement title documentation needed to complete registration.

Step 7: File the Seller Notice with DMV

California requires the seller to notify DMV within five calendar days after the sale and delivery of possession. That obligation appears in Vehicle Code section 5900, and DMV provides the filing through its Notice of Transfer and Release of Liability system or by mailing REG 138.

Step 8: Buyer Submits the Application Within the Statutory Deadline

California requires the transferee to submit the transfer promptly. Under Vehicle Code section 5902, a person who receives a properly endorsed certificate of ownership must forward it with the proper transfer fee to the DMV within 10 days. The buyer may submit the paperwork by mail or at a DMV field office.

Title Transfer Fee Schedule in California

California collects the following title and transfer fees. County or district fees can vary by location.

Sales Tax on Private Vehicle Sales

California taxes most private-party vehicle purchases through use tax rather than dealer-collected sales tax. Use tax applies when a vehicle is purchased from a private party for use in California, unless an exemption or exclusion applies.

The tax rate is based on the registration address. The statewide base rate is 7.25%, and district taxes may increase the total rate depending on the location.

The buyer pays the tax when the vehicle is registered with the DMV. If the transaction is not registered and taxed through the DMV, the purchaser must report the purchase directly to the California Department of Tax and Fee Administration by the last day of the month following the month of purchase.

What To Do After Selling a Car in California

California handles plates differently from many states. Standard plates generally remain with the vehicle they were issued to, while certain personalized or special plates may be reassigned to another vehicle on request and payment of the required fees.

After the vehicle is delivered, the seller should file the notice of transfer and keep the confirmation. Once the notice is received, liability for violations after the sale date shifts to the subsequent purchaser, and renewal notices should no longer be sent to the seller for that vehicle.

California requires financial responsibility such as insurance for vehicles operated or parked on public roads. After a sale is completed, the policy covering the sold vehicle should be updated with the insurer so that the former owner is not maintaining unnecessary coverage on a vehicle no longer owned.

DMV advises sellers to keep proof of the transfer filing, and the same practice should be followed for the endorsed title copy, bill of sale, odometer disclosure, smog paperwork, and lien release documents.

Contact Information

California Department of Motor Vehicles
2415 1st Ave., Sacramento, CA 95818-2606
Phone: (800) 777-0133
Official Website: California Department of Motor Vehicles