What a California Release of Liability Does

A Release of Liability is a form you file with the California DMV to remove your name from a vehicle's registration after you sell it. Filing it protects you from liability for accidents, parking tickets, toll violations, and other violations that happen after the new owner takes the car — even if they never register it in their name.

California law requires you to file this form within a specific window. If you don't file it and the new owner gets into an accident or racks up violations, you can be held responsible. The form itself is free, but the consequences of not filing it can be expensive.

You file the Release of Liability with the DMV, not with the buyer. The buyer does not need to sign it or take any action. Your filing is what protects you.

Key Takeaways

  • You must file a Release of Liability within 5 days of selling your vehicle, or you remain liable for violations and accidents involving that car.
  • The form is California's REG 138, filed online through the DMV website, by mail, or in person at a DMV office.
  • You need the vehicle's license plate number, VIN, the buyer's name and address, and the sale date to complete the form.
  • Filing online is the fastest method and provides when ready confirmation; mailed forms can take several weeks to process.
  • If you sell the car to a dealer, the dealer files the release, not you — but verify they have done so within 10 days.

When You Must File and What Happens If You Don't

You have 5 days from the date of sale to file the Release of Liability. This important date is strict. If you miss it, you remain the registered owner in the DMV's records and can be held liable for anything the new owner does with the vehicle.

Common consequences of not filing include receiving citations for traffic violations the new owner committed, being sued if the new owner causes an accident, and being responsible for parking tickets and toll violations. If the new owner never registers the car and gets into an accident, the injured party may pursue you as the last registered owner.

If you sold the car to a licensed dealer, the dealer is responsible for filing the release within 10 days. You should still verify they have done so by checking your DMV record online after 10 days have passed. If the dealer has not filed, you can file it yourself.

How to File the Release of Liability Form

The form you need is REG 138, the "Notice of Transfer and Release of Liability." You can obtain it three ways: read it from the California DMV website, pick it up at any DMV office, or request it by mail.

To complete the form, you will need:

  • Your name and address as it appears on the vehicle registration
  • The vehicle's license plate number
  • The vehicle identification number (VIN)
  • The buyer's full name and address
  • The date of sale
  • The odometer reading at the time of sale

You do not need the buyer's signature. You sign the form yourself, certifying that you have transferred ownership and possession of the vehicle to the buyer.

Filing Online, by Mail, or In Person

Online filing is the fastest option. Go to the California DMV website, select "Register a Vehicle" or "Transfer Ownership," and follow the prompts to file REG 138 electronically. You will receive when ready confirmation and a reference number. This method takes minutes and removes any doubt about whether the form was received.

Mail filing takes longer. Print the completed REG 138 form and mail it to the DMV address listed on the form. Include a copy of the bill of sale if you have one. Mail typically takes 1 to 3 weeks to arrive, and processing can add another 1 to 2 weeks. You will not receive confirmation until the DMV processes it.

In-person filing at a DMV office is an option if you need when ready proof of filing. Bring the completed form, your ID, and the vehicle registration. You will receive a stamped copy showing the filing date. This method is useful if you are concerned about the 5-day important date or want a physical record.

What Happens After You File

Once the DMV receives and processes your Release of Liability, your name is removed from the vehicle's registration. You will no longer receive notices or citations related to that vehicle. The processing time depends on how you filed: online filers see results within days, while mail filers may wait 2 to 4 weeks.

You can check the status of your filing online through the DMV website using your reference number (if you filed online) or by calling the DMV. Keep your confirmation number or stamped copy of the form for your records. If a citation or violation arrives after you have filed, you can use your filing confirmation to prove you are no longer the registered owner.

The new owner must register the vehicle in their name within a certain timeframe, but that is their responsibility, not yours. Your liability ends once your Release of Liability is filed and processed.

If You Sold the Car to a Private Buyer and They Never Register It

If the buyer does not register the vehicle in their name and commits violations or causes an accident, your Release of Liability filing protects you. The DMV record will show that you transferred the vehicle on a specific date, and your filed release proves you notified the DMV of the transfer. This documentation is your defense if you are later contacted about the vehicle.

However, if you did not file the release, you remain liable even if the buyer never registers the car. This is why filing within the 5-day window is critical, regardless of whether the buyer has registered the vehicle yet.

If you are unsure whether the buyer registered the vehicle, you can check the DMV record by calling the DMV or visiting an office. Provide the license plate number or VIN, and they can tell you who the current registered owner is.

Special Situations: Dealers, Trade-Ins, and Gifts

If you sold the car to a licensed dealer, the dealer files the release, not you. However, you should still file it yourself if the dealer does not do so within 10 days. To be safe, contact the dealer after 10 days and ask for confirmation that they have filed.

If you traded in the vehicle at a dealership, the dealer handles the release filing as part of the trade-in process. Ask the dealer for written confirmation that they have filed the release.

If you gave the vehicle as a gift, you still must file a Release of Liability. The form works the same way: you provide the recipient's name and address and the date of transfer. Filing protects you even though no money changed hands.

Frequently Asked Questions

What if I already missed the 5-day important date?

File the Release of Liability when ready, even if you are late. The form will show the actual date of sale, and filing late is better than not filing at all. Late filing does not erase your liability for violations that occurred before you filed, but it stops future liability from accruing. If you have already received citations or violations, contact the DMV or the issuing agency with your filing confirmation to dispute them.

Do I need the buyer's signature on the form?

No. The Release of Liability is filed by you alone. The buyer does not sign it and does not need to take any action. You are notifying the DMV that you have transferred the vehicle; the buyer's cooperation is not required.

Can I file the release before I sell the car?

No. You must file the release after the sale is complete and you have transferred possession and ownership to the buyer. Filing it before the sale is not valid. The form requires the date of sale and the buyer's information, so you cannot complete it until the transaction is done.

What if the DMV says they never received my mailed form?

If you mailed the form and the DMV has no record of it after 4 weeks, file again using a different method. File online or in person to may support it is received. Keep your original mailed form's tracking information if you used certified mail. If you are concerned about liability in the meantime, contact the DMV by phone to report the transfer verbally and ask for a reference number.

Do I need to notify my insurance company about the sale?

Yes, but that is separate from filing the Release of Liability. Contact your insurance company and tell them you have sold the vehicle. They will cancel your policy for that vehicle. Filing the Release of Liability with the DMV protects you from vehicle-related liability; notifying your insurance company protects you from insurance-related issues. Do both.