Handing over your car keys to a private buyer is a great feeling, but your responsibilities as a vehicle owner do not end the moment cash changes hands. Under state law, filing a release of liability California notice within five calendar days of the sale is a legal requirement that protects you from serious financial and legal fallout.
Thousands of California vehicle sellers overlook this critical step every year. Weeks or months later, they open their mailboxes to find unpaid parking citations, FasTrak bridge toll violations, red-light camera tickets, or notices from impound lots demanding thousands of dollars in storage fees. Even worse, if the buyer causes a collision before completing the title transfer, the seller can be named in civil lawsuits.
At Arden Auto Reg in Sacramento, we help sellers and buyers manage private party transactions with accurate title transfers and report of sale documentation.
What Is a Notice of Transfer and Release of Liability (NRL)?
A Notice of Transfer and Release of Liability (commonly referred to as an NRL or Form REG 138) is an official document that notifies the California Department of Motor Vehicles that you have sold, gifted, or transferred legal interest in a motor vehicle or vessel.
Under California Vehicle Code Section 5900, the registered owner must submit this notice within five calendar days of the transaction date. Submitting the NRL establishes a formal legal record that you are no longer the operating owner of the vehicle.
While the NRL does not transfer the vehicle title into the buyer’s name (which the buyer must complete within 10 days), it shields you from liability arising from the vehicle’s subsequent operation, abandonment, or traffic violations.
Why Filing Within 5 Days Is Non-Negotiable
In California, license plates stay with the vehicle rather than the owner. When a buyer drives away in your former car, they are driving with your existing license plates attached. If that buyer fails to register the vehicle at the DMV, state databases will continue listing you as the responsible party unless an NRL is on file.
Filing your release of liability California paperwork promptly protects you from several severe risks:
- Parking Citations: Municipalities issue parking tickets to the registered owner on record. If the buyer parks illegally, the citations will be mailed directly to your address.
- Automated Toll Evasion: Bridge toll cameras on Bay Area crossings and automated express lanes bill the license plate holder. Multiple unpaid toll crossings quickly escalate into hundreds of dollars in collection fees.
- Towing and Impound Fees: If the vehicle is involved in a crime, abandoned on a highway, or parked during street sweeping, towing companies can rack up storage charges exceeding $100 per day and pursue the registered owner for payment.
- Civil Accident Liability: If the new owner causes a major crash without active insurance, injured parties and insurance adjusters routinely pull DMV owner records to identify liable defendants.
For more details on transaction hazards, read our analysis on why title transfer delays can lead to legal issues.
Information Required to File Form REG 138
Before handing over the title and keys, make sure you collect all the necessary information from the buyer. You will need exact details to complete the form successfully:
| Required Information | Description & Why It Matters |
|---|---|
| Vehicle Identification Number (VIN) | Exact 17-digit number from title or dashboard to match state records |
| California License Plate Number | The current plate number attached to the vehicle |
| Make, Model, and Year | Standard vehicle descriptive details |
| Exact Date of Sale | The calendar day the vehicle was handed over (starts legal protection) |
| Odometer Mileage Reading | Exact mileage on the odometer at the moment of sale |
| Buyer Full Name and Address | Must include physical street address (P.O. boxes alone are rejected) |
| Selling Price | Total dollar amount received for the vehicle |
Make a habit of taking a photograph of the buyer’s valid California driver license and the completed title before the vehicle leaves your driveway.
How to File Your Release of Liability: Two Methods
Method 1: File Online Through the California DMV Portal
The fastest and most reliable way to submit your notice is through the DMV website. Filing online updates the DMV record almost instantly and generates a printable confirmation receipt with a timestamp. Keep this digital or paper confirmation in your permanent records for at least three years.
Method 2: Mail Form REG 138
If you prefer paper filing, you can tear off the Notice of Transfer stub attached to the top of your California Certificate of Title, or download and print Form REG 138. Complete all fields accurately in blue or black ink and mail it to the DMV headquarters address listed on the form.
If mailing your form, sending it via certified mail with return receipt requested provides undeniable proof of the date you submitted the document to the state.
If your car still had an active loan when you initiated the sale, you should also read our guide on how to get a lien released and the title in your name before signing over ownership.
What to Do If You Forgot to File and Received Tickets
If you sold a vehicle months ago and suddenly receive traffic tickets or toll violations in the mail, do not panic, but take immediate action:
- File the NRL Immediately: Submit Form REG 138 right away. The form allows you to backdate the sale date to the actual day the transaction occurred. While late filing does not erase the five-day requirement, getting the sale on record is vital.
- Contest the Citations in Writing: Contact the issuing agency (such as the city parking authority or FasTrak) immediately before the payment due date. Send a copy of your bill of sale, the buyer’s contact info, and your DMV NRL confirmation receipt. Most agencies will dismiss tickets against the seller once proof of prior sale is submitted.
- Check Vehicle Record Status: Reviewing vehicle history helps confirm whether title transfer occurred. You can learn more about verifying registration history in our guide on why vehicle records are important when buying and selling.
If you are coordinating a private party sale from the buyer’s perspective, check our guide on how the title transfer works.
Common Mistakes Sellers Make in California
Relying on the buyer to handle the DMV. Never assume a buyer will promptly visit the DMV to transfer the title. Many buyers delay transfers for months to avoid paying use tax and registration fees, leaving you exposed.
Writing down an incomplete buyer address. If you write an incomplete street address, missing apartment number, or illegible name on Form REG 138, the DMV system will reject the filing without notifying you.
Failing to provide a smog certificate. In California, the seller is legally responsible for providing a valid smog inspection certificate completed within the last 90 days prior to sale, unless the vehicle is four model years old or newer.
Throwing away sales records too quickly. Keep copies of your signed bill of sale, buyer driver license, and NRL confirmation for at least three to four years after any private vehicle transaction.
How Arden Auto Reg Can Help Sacramento Sellers
Handling private vehicle sales involves detailed legal requirements that can feel overwhelming when managing paperwork on your own. Arden Auto Reg provides Sacramento drivers with professional vehicle registration and transfer support.
As an authorized Business Partner Automation office licensed by the California DMV, our staff helps sellers and buyers finalize transfers, process reports of sale, clear title errors, and verify that paperwork complies with state guidelines. While our private transaction fees are higher than state field office prices, our clients appreciate walking straight to the counter, avoiding lines, and leaving with full confidence that their sale is completed properly. Please remember that Arden Auto Reg manages vehicle documents and titles only; we do not offer driver licensing or testing services.
For an in-depth walkthrough on protecting yourself during a private vehicle sale, read our guide on how vehicle title transfers work when buying or selling.
Frequently Asked Questions
Does filing a release of liability transfer the vehicle title?
No. Filing an NRL notifies the DMV that you sold the vehicle, which protects you from future liability. However, legal ownership does not officially transfer until the buyer submits the Certificate of Title and pays applicable use taxes and transfer fees.
What happens if I make a mistake on the online NRL form?
If you enter incorrect information online, you cannot edit the submission electronically. You must complete a physical Form REG 138 with the correct details and mail it directly to DMV headquarters with an attached explanatory statement.
Do I need to turn in my license plates when I sell a car in California?
No. In California, standard license plates remain on the vehicle when sold. The only exception is personalized or special interest plates, which the seller may choose to retain by filing a plate retention application.
Is there a fee to file a Notice of Release of Liability in California?
No. Submitting a Notice of Transfer and Release of Liability (Form REG 138) directly with the California DMV is completely free of charge.
Can I file an NRL if I traded my car into a dealership?
Yes. Even when trading in a car at a commercial dealership, filing an NRL with the dealer’s business name and acquisition date is recommended to ensure your records are completely protected.
Conclusion
Filing a release of liability California notice within five days of selling your car is the single most effective legal shield you have against unexpected traffic tickets, toll evasion fines, and civil lawsuits. Taking three minutes to record the buyer’s information and submit Form REG 138 guarantees that your ties to the vehicle are legally cut the moment it pulls away.
Make the release of liability an automatic part of every private vehicle sale, and keep your documentation organized for total peace of mind.
Selling or Buying a Vehicle in Sacramento? Visit Arden Auto Reg
Ensure your vehicle sale is processed correctly and legally from start to finish. The experienced team at Arden Auto Reg in Sacramento helps local drivers complete vehicle transfers, title documentation, and registration paperwork quickly and accurately.
Call our office today at (916) 272-3131 or schedule your appointment online. Skip the DMV waiting lines and let Arden Auto Reg take care of your paperwork today.
