Transferring Vehicle Ownership in California

When you buy or sell a vehicle in California, the ownership must be properly transferred through the California Department of Motor Vehicles (DMV). Whether it's a private party sale, inheritance, or gifting a vehicle, there are specific steps and legal requirements to follow to avoid penalties and ensure the new owner can legally drive the vehicle.

When Is a Title Transfer Required?

You must transfer a vehicle title in California under the following circumstances:

• Selling or buying a vehicle through a private party
• Gifting a vehicle to someone
• Inheriting a vehicle
• Paying off a vehicle loan (change from lienholder to owner)
• Donating a vehicle
• Transferring ownership between family members

Key Steps for a Title Transfer

Both the buyer and seller must participate in the title transfer process. Here's a breakdown of what each party needs to do:

For the Seller

1. Complete the Title Certificate
   Fill out the “Transfer of Title” section on the back of the California Certificate of Title, including the odometer reading if the vehicle is less than 10 years old.

2. Report the Sale
   File a Notice of Transfer and Release of Liability (NRL) with the DMV within 5 days of the sale. This can be done online via the CA DMV NRL portal.

3. Provide the Buyer with Necessary Documents
   This includes the signed title, a bill of sale (if applicable), and a valid smog certification if required.

For the Buyer

1. Obtain the Title from the Seller
   Ensure all information is filled out correctly, including odometer disclosure.

2. Complete Form REG 343
   This is the Application for Title or Registration, available at dmv.ca.gov.

3. Pay Transfer Fees
   Fees may include use tax, title transfer fee, registration fee, and potential penalties for late filing. Refer to the California DMV Fee Schedule Overview.

4. Submit the Paperwork to DMV
   File all documents in person at a DMV office, via mail, or through a licensed DMV business partner.

Timeframe for Completing the Transfer

The buyer must transfer the title within 10 days of acquiring the vehicle. Failing to do so may result in late penalties.

Smog Certification Requirements

A smog certification is generally required if the vehicle is more than 4 model years old. The certificate is valid for 90 days, and must be provided by the seller unless:

• The vehicle is less than 4 years old
• It's being transferred between certain family members
• It's exempt (e.g., diesel-powered, electric, or hybrid vehicles)

Family Transfers and Gifting Vehicles

Transfers between parents, children, grandparents, grandchildren, spouses, or domestic partners are considered “family transfers” and may be exempt from use tax. Still, you must submit the necessary forms and possibly a Statement of Facts (REG 256).

For more details, see How to Register Your Vehicle in California.

Buying from a Dealership

Licensed dealers usually handle the entire title transfer and registration process. They must submit the documents to the DMV within 30 days of the sale. However, it’s still wise to confirm that the vehicle has been properly registered in your name.

Handling a Lost Title

If the original title is lost, you can apply for a duplicate using Form REG 227. This must be completed before transferring ownership.

Common Mistakes to Avoid

• Not reporting the sale promptly, which can result in liability issues
• Submitting incomplete forms or incorrect odometer readings
• Failing to obtain a smog certification when required
• Waiting too long to submit the transfer paperwork

You can also use the Essential Forms for California DMV Transactions resource to find all required documents in one place.

Additional Resources

• California DMV Title Transfers Guide
• California Vehicle Registration Renewal Process
• Changing Your Name on California DMV Records

By following these steps, you can ensure a smooth and legal transfer of vehicle ownership in California without unexpected delays or penalties.