The basic process: what you need to do
To transfer a car title to a family member in California, you fill out the back of the title document (the pink slip), have both the current owner and new owner sign it, and submit it to the California Department of Motor Vehicles (DMV) along with a completed REG 262 form and the required fee. The new owner then becomes the registered and legal owner of the vehicle.
California does not have a separate "family transfer" process—the steps are the same whether you are transferring to a spouse, adult child, parent, or sibling. However, the paperwork and fees differ slightly depending on whether money changes hands, whether there is a lien on the vehicle, and whether the new owner lives in California or out of state.
Key Takeaways
- Both the current owner and new owner must sign the back of the title (pink slip) in the presence of a notary or DMV representative.
- You will need the completed REG 262 form, the signed title, proof of California vehicle registration, and a valid ID for both parties.
- The transfer fee is $15 if no money changes hands; if you are selling the vehicle to a family member, the fee is higher and depends on the sale price.
- If the vehicle has a lien (loan), the lienholder must release it before the title can transfer, which usually takes a few days to a week.
- You can submit documents by mail, in person at a DMV office, or through an authorized third-party service, though mail processing takes longer.
Signing the title correctly
The title document itself is where the legal transfer happens. On the back of the pink slip, you will see a section labeled "Reassignment of Title by Registered Owner." The current owner (you) signs here, and the new owner signs in the "New Owner" section. Both signatures must be notarized or witnessed by a DMV representative.
A notary public can witness both signatures at the same time, which is usually faster than going to the DMV. Many banks, credit unions, and UPS stores offer notary services for a small fee, often $5 to $15. If you go to the DMV in person, a staff member can witness the signatures for free as part of the transfer process.
Do not sign the title before you are ready to transfer it. Once both parties have signed, the document is legally binding. If you make a mistake—a misspelled name, wrong date, or illegible signature—you may need to request a duplicate title from the DMV and start over.
Gathering the required documents
Before you go to the DMV or mail in your paperwork, collect these documents: the signed title (pink slip), the completed REG 262 form (process for Title or Registration), proof of California vehicle registration (your current registration card), a valid ID for both the current owner and new owner, and the transfer fee. If the vehicle has a lien, you will also need written confirmation from the lienholder that the loan has been paid off or that they consent to the transfer.
The REG 262 form is available on the California DMV website or at any DMV office. You can fill it out by hand or print it and complete it on your computer. The form asks for the vehicle identification number (VIN), the current owner's name and address, the new owner's name and address, and the date of transfer. If the new owner is moving to California from another state, they will need to provide their out-of-state driver's license or ID as proof of identity.
If you are transferring the title because the vehicle was inherited, you may need additional documents such as a death certificate or a court order. Contact your local DMV office or check the California DMV website for the specific requirements in your situation.
Understanding the transfer fee and when it applies
The fee for transferring a title depends on whether money changes hands. If you are giving the vehicle to a family member as a gift, the fee is $15. If you are selling the vehicle to a family member, the fee is based on the sale price and is the same as the standard vehicle registration fee, which varies by vehicle weight and type.
California requires you to report the sale price on the REG 262 form, even in a family transfer. If you report a price that is significantly lower than the vehicle's market value, the DMV may assess the transfer based on the actual value rather than the reported price. This is to prevent people from underreporting sales to avoid fees. If you are genuinely giving the vehicle as a gift, you can report the sale price as zero.
You can pay the fee by check, money order, or credit card when you submit your documents. If you are mailing your paperwork, include a check or money order made out to the California DMV. If you are going in person, you can pay at the counter.
Handling a vehicle with an outstanding loan
If the vehicle still has a loan against it, the lender's name appears on the title as the lienholder. You cannot transfer the title to a family member until the lien is removed. This means either paying off the loan in full or getting written permission from the lender to transfer the vehicle while the loan is still active.
Most lenders will not allow a title transfer while the loan is outstanding because they need to protect their interest in the vehicle. Your best option is to pay off the loan before transferring the title. Once you pay it off, contact the lender and ask them to send you a lien release letter or a duplicate title with the lien removed. This usually takes three to seven business days.
If the new owner is taking over the loan as part of the transfer, you will need the lender's written consent and specific instructions on how to proceed. Some lenders have a formal process for this; others will not allow it. Contact your lender directly to find out what is possible in your situation.
Where and how to submit your documents
You have three options for submitting your transfer documents: by mail, in person at a DMV office, or through an authorized third-party service such as AAA or a local auto registration service.
Mailing your documents to the DMV is the slowest option. Processing times vary, but expect four to six weeks. You will mail your signed title, completed REG 262 form, proof of registration, and fee to the address listed on the DMV website for your county. Include a self-addressed stamped envelope if you want the DMV to return your documents. Keep copies of everything you send.
Going in person to a DMV office is faster. You can often complete the transfer on the same day, though you may need to wait in line. Bring all your documents, your ID, and the fee. A DMV representative can witness the signatures on the title if they have not been notarized yet. Find your local DMV office on the California DMV website and check their hours before you go.
Authorized third-party services can handle the paperwork for you, but they charge a service fee on top of the DMV fee. This option is useful if you do not have time to go to the DMV or prefer to have someone else manage the process. Search for "DMV authorized service" or "vehicle registration service" in your area to find local options.
What happens after you submit the transfer
Once the DMV processes your transfer, the new owner will receive a new registration card in the mail. This usually arrives within two to four weeks if you submitted in person, or six to eight weeks if you mailed your documents. The new owner's name will appear on the registration and on the title.
During the processing period, the vehicle is still registered to the current owner in the DMV system, even though you have signed the title over. If there is a traffic ticket or accident during this time, it may be issued to the current owner. For this reason, it is a good idea to notify your insurance company of the transfer right away, even before the new registration arrives.
The new owner should update their auto insurance as soon as the transfer is complete. Most insurance companies will not cover a vehicle that is not registered in the policyholder's name. If the new owner is a young driver or has a poor driving record, the insurance cost may increase.
Frequently Asked Questions
Do I need to notarize the title if I go to the DMV in person?
No. A DMV representative can witness both signatures on the title for free when you go in person. If you prefer to have the signatures notarized before you go, you can do that instead, but it is not required.
What if the new owner does not live in California?
If the new owner lives out of state, they will need to register the vehicle in their home state within a certain time frame (usually 20 to 30 days). California will issue them a title, but they will need to take it to their state's DMV to register it there. The transfer process in California is the same; the difference is what happens after.
Can I transfer the title if the vehicle is financed and I am still making payments?
Not without the lender's permission. The lender has a legal claim to the vehicle until the loan is paid off. Contact your lender to ask if they will allow a transfer; most will not. Your best option is to pay off the loan first.
How long does the transfer take if I go to the DMV in person?
If both signatures are already notarized and all your documents are complete, you can often finish the transfer in one visit. However, you may wait in line for 30 minutes to an hour depending on how busy the office is. If signatures need to be witnessed, add another 10 to 15 minutes.
What if I made a mistake on the title or the REG 262 form?
Minor mistakes such as a crossed-out word or a small spelling error are usually acceptable if they are initialed by the person who made the mistake. If the mistake is significant—such as the wrong VIN or the wrong owner name—you may need to request a duplicate title from the DMV and start the transfer over.