Private-party transfer in California: closing the sale without surprises
Steps for buyer and seller, documents, payment and state-specific plate conditions.
A private sale calls for checking the title, payment, plate and applicable state procedures. This guide is written for both sides of the table, with California's rules.
The place and the moment
Ask the titling office (At a DMV field office (by appointment) or by mail to DMV. There are no county offices: in California the state handles the title directly. If the car comes from another state, you must go in person because DMV has to inspect it) in advance about accepted signatures, documents, appointments and payments. Where available, coordinate the handover with that office and verify payment with the issuing bank before releasing the car or documents.
Step by step
| # | Seller | Buyer |
|---|---|---|
| 1 | Confirm the title is in your name and lien-free. If there is a loan, get the bank's release before listing. | Ask for the VIN and check title, recalls and history before seeing the car. |
| 2 | Allow an independent inspection. Agree in writing how and when it will take place. | Pre-purchase inspection with your own mechanic. |
| 3 | Agree the total price in writing on a bill of sale: VIN, year, make, model, price, date, names, signatures. Two copies. | Same. The bill of sale is your proof of price for the tax. |
| 4 | On the title: your signature, the buyer's name and address, price, date and the applicable odometer disclosure, including exemptions and any required mileage-discrepancy indicators. Odometer statement required if the car is less than 10 years old: on the title or on REG 262 (federal law, 49 CFR 580). | Check that the VIN on the title is the car's and that the person signing is the titled owner. |
| 5 | Receive payment: cashier's check verified at the issuing bank, confirmed transfer, or cash inside the bank. | Pay only when the signed title is in your hand. |
| 6 | Confirm the plate that accompanies the vehicle. Check the exceptions and state procedure below. | A plate on the car does not replace the ownership-transfer or registration requirements. |
| 7 | Listed seller-process document: REG 138 (Notice of Transfer and Release of Liability) or online NRL. Follow the timing and conditions in the state process below; keep your copy. | Confirm the required documents, fees, taxes and deadline with the agency, including the event that starts the deadline. Bring the applicable insurance or financial-responsibility documents. |
| 8 | Ask your insurer when to cancel or transfer coverage, and first confirm the registration and plate conditions. | Confirm the coverage or proof of financial responsibility required for your transaction and before driving. |
The plate in California
In California the plates stay with the car: the buyer drives off with the seller's plates and current registration. The seller files the NRL within 5 days (online or REG 138) to stop being liable for tickets and accidents; the buyer transfers the title within 10 days; if the buyer is late, DMV adds a $15 transfer penalty (VC §9553.7), which DMV says is charged after 30 days from the sale even though the deadline is 10 days. The seller must hand over a smog check passed within the last 90 days (except a car 4 model years or newer, electric, gasoline 1975 or older, diesel 1997 or older).
What each one must bring
Seller
- Title (or printout of the electronic one)
- Photo ID
- Lien release, if any
- REG 138 (Notice of Transfer and Release of Liability) or online NRL
- A screwdriver for the plate
Buyer
- State forms (REG 343, REG 227, REG 262)
- Photo ID
- Insurance card
- Payment for fees and tax
- If out of state: whatever VIN verification the state requires
Three special situations
- Lost title. The seller requests a duplicate before selling. Don't accept "I'll send it later."
- Two owners on the title. If the names are joined by "and," both sign. With "or," one is usually enough.
- The seller is an heir or holds a power of attorney. Extra documentation is needed (estate papers or POA). Confirm at the office before paying.
Keep the records; check the official process
Sources
- California DMV — Registration Fees
- California DMV — Private-Party Purchase (buyers have 10 days)
- California DMV — Title Transfers and Changes
- California DMV — Out-of-State Title Transfer Checklist
- California DMV — Insurance Requirements
- California DMV — New resident: register within 20 days
- California Vehicle Code § 5902 — Transferee to apply within 10 days (text via public.law mirror)
- California DMV — Registration for a Vehicle Purchased from a Dealer (transfer fees due within 10 days; late penalty after 30 days; use tax 7.25%–10.25%)
- California DMV — Notice of Transfer and Release of Liability (5 calendar days, CVC §5900; liability release CVC §5602)
- California DMV — Vehicle Industry News VIN 2026–07, Miscellaneous Fee Increase effective January 1, 2027 (PDF)
- CDTFA — Publication 52, Vehicles and Vessels: Use Tax (November 2025): DMV collection, family and gift exemptions, 12-month out-of-state rule (PDF)
- CDTFA — Tax Guide for Motor Vehicle Dealers, Industry Topics: a trade-in allowance cannot be deducted
- Cal. Veh. Code § 5900 — REG 138 (Notice of Transfer and Release of Liability) or online NRL
- 49 CFR Part 580 — Federal odometer disclosure requirements
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.