What a Release of Liability Does and Why You Need It

A Release of Liability is a form you file with the California Department of Motor Vehicles to tell them you no longer own a vehicle. It protects you from being held responsible for traffic violations, accidents, parking tickets, or toll violations that happen after you sell the car. Without it, the DMV's records still show you as the registered owner, and citations or bills can arrive at your address months or even years later.

California law does not require you to file this form, but the consequences of not doing so are real. If the new owner gets a speeding ticket, causes an accident, or racks up unpaid tolls, you could be contacted by law enforcement, collection agencies, or the courts. Filing a Release of Liability creates a dated record proving you transferred ownership on a specific day.

The form itself is straightforward and costs nothing. You can file it online, by mail, or in person at a DMV office. The key is doing it quickly after the sale—ideally on the same day or within a few days.

Key Takeaways

  • A Release of Liability protects you from responsibility for violations and accidents that occur after you sell your vehicle by creating a dated record with the DMV.
  • You can file the form online through the DMV website, by mail, or in person at any DMV office, and there is no fee.
  • File as soon as possible after the sale—the sooner your record is updated, the sooner your protection begins.
  • If you sell to a private buyer, you must file the form yourself; if you trade in or sell to a dealer, they usually file it for you, but you should confirm.
  • Keep a copy of your filed Release of Liability and the buyer's contact information in case questions arise later.

The Form You Need: REG 138

The official form is called REG 138, or "Notice of Transfer and Release of Liability." You will find it on the California DMV website under the Forms section. The form has two parts: one section for you (the seller) to complete, and one for the buyer to complete. However, you are only responsible for filing your section.

The form asks for basic information: your name and address, the vehicle identification number (VIN), the license plate number, the date of sale, and the buyer's name and address. You do not need the buyer's signature on your copy—you only need to provide their information so the DMV knows who to contact if there are questions.

If you do not have the buyer's full information at the time of sale, you can still file with what you have. The DMV accepts partial information and will update the record once the new owner registers the vehicle in their name.

Filing Online, by Mail, or In Person

The fastest method is filing online through the California DMV's website. You can upload a completed REG 138 form or fill out the form directly on their portal. Online filing typically takes a few minutes, and you receive confirmation when ready. This is the safest option because you have a timestamped record right away.

If you prefer to mail the form, send it to the DMV address listed on the form itself. Include a copy for your records. Mailed forms take longer to process—usually two to four weeks—so file as soon as you can after the sale. Keep the mailing receipt or a photo of the envelope as proof you sent it.

You can also walk into any DMV office and file the form in person. Bring your driver's license and the completed REG 138. This method gives you a receipt on the spot and takes about 15 minutes. Some offices are less busy than others, so calling ahead to check wait times can save you a trip.

When You Sell to a Dealer or Trade In

If you sell your car to a licensed dealer or trade it in, the dealer is legally required to file the Release of Liability on your behalf. However, you should not assume they will do it when ready. Ask the dealer directly: "Will you file the Release of Liability for me, and when?" Get the answer in writing if possible—on your bill of sale or in an email.

Even if the dealer promises to file, you can file it yourself as well. Filing twice does no harm; the DMV will straightforward update the record. If you are worried the dealer might not follow through, file the form yourself within a few days of the sale. This gives you peace of mind and a backup record.

If you trade in a vehicle as part of buying another one, the same rule applies. The dealer handling the trade-in should file the Release of Liability for the vehicle you are selling. Confirm this before you leave the lot.

What Happens After You File

Once the DMV receives your Release of Liability, they update their records to show you are no longer the registered owner. The protection begins on the date you file, not the date of sale. This is why timing matters: if you file two weeks after selling the car, you are only protected from that filing date forward.

The new owner must register the vehicle in their name within a certain timeframe (usually 10 days of purchase). Once they do, the DMV's records will show them as the owner. Until then, the vehicle may still appear under your name in the system, but your filed Release of Liability proves you transferred it.

If the buyer never registers the vehicle and it gets cited for violations, your Release of Liability protects you because it shows you reported the transfer. Without it, you could be held liable even though you no longer own the car.

Keeping Records and Protecting Yourself

Save a copy of the completed REG 138 form and the DMV's confirmation or receipt. If you filed online, take a screenshot of the confirmation page. If you mailed it, keep the postal receipt. If you filed in person, keep the receipt the DMV gave you. These documents prove you filed and when.

Also keep the buyer's contact information—their name, phone number, and address. If a citation or bill arrives at your address after you filed, you can provide this information to help the DMV or the citing agency contact the current owner instead of you.

If you sold the car privately and the buyer's information is incomplete, write down everything you do have: their first and last name, phone number, or email. Even partial information helps if you need to prove you attempted to transfer ownership.

What to Do If You Receive a Citation After Selling

If a ticket, toll bill, or violation notice arrives after you have filed a Release of Liability, do not ignore it. Contact the issuing agency (the police department, traffic court, or toll authority) and provide them with a copy of your filed Release of Liability and the buyer's information. Explain that you sold the vehicle and filed the transfer with the DMV.

Most agencies will investigate and contact the current owner instead. If the new owner never registered the vehicle, the process may take longer, but your Release of Liability proves you did your part. Keep copies of all correspondence in case you need to dispute the citation later.

If you receive a notice before you have filed the Release of Liability, file it when ready and then contact the agency. The sooner you create that dated record, the stronger your position.

Frequently Asked Questions

Do I have to file a Release of Liability if I sell my car to a private buyer?

California law does not require it, but you should file one anyway. Without it, you remain liable for violations and accidents involving the vehicle after the sale. Filing takes minutes and costs nothing, so the protection is worth the small effort.

What if I sell my car and the buyer never registers it?

Your filed Release of Liability still protects you. It proves you transferred ownership on a specific date. If the vehicle is cited for violations, the DMV and law enforcement can use your filing to determine that you are no longer responsible. The buyer's failure to register does not undo your protection.

Can I file a Release of Liability if I do not have the buyer's full name and address?

Yes. File with whatever information you have. The DMV accepts partial information and will update the record when the new owner registers the vehicle. If you have only a first name or phone number, include it—something is better than nothing.

How long does it take for the DMV to process a Release of Liability?

Online filing is when ready. Mailed forms take two to four weeks. In-person filing at a DMV office gives you a receipt the same day. Your protection begins on the date you file, not the date the DMV processes it.

What if the dealer I sold to says they will file the Release of Liability but I want to file it myself too?

You can file it yourself. Filing twice does no harm—the DMV will straightforward update the record. If you are unsure whether the dealer will follow through, filing yourself ensures you have a dated record of the transfer.