Free California As-Is Bill of Sale

California As-Is Bill of Sale — What You Need to Know

Sales Tax Details

California's base state sales/use tax is 7.25%. District taxes can push the effective rate to 10.75% in some jurisdictions. The buyer pays use tax to the California DMV at the time of registration.

Exemption: Certain family member transfers (spouse, parent, child, grandparent, grandchild, sibling) may be exempt from use tax — consult the California DMV or CDTFA.

Inspection Requirements

The seller is generally responsible for providing a valid smog certificate (smog check) at the time of sale for most gasoline-powered vehicles 1976 and newer, unless the vehicle is exempt (e.g., diesel under 14,001 lbs manufactured before 1998, electric, or vehicle 4 years old or newer). An as-is sale does NOT relieve the seller of the smog certificate obligation. If the seller is aware of emissions defects, those must be disclosed to the buyer before the smog test is paid for.

California As-Is Sale — Step-by-Step Checklist

1. Print 'THIS VEHICLE IS SOLD AS IS — NO WARRANTIES EXPRESS OR IMPLIED' in bold or all-caps in the bill of sale.
2. Disclose all known material defects in writing — California Civil Code § 1710 makes concealment of known material facts actionable fraud even in as-is sales.
3. Obtain and provide a valid smog certificate (smog check) before the sale if the vehicle is subject to the smog requirement; disclose any known emissions defects beforehand.
4. If the vehicle has a salvage, non-repairable, or rebuilt (Revived Salvage) title, transfer the correct California certificate type and disclose the vehicle history in writing.
5. Complete the federal odometer disclosure on the title for vehicles under 10 years old and under 16,000 lbs GVWR.
6. Sign the back of the California Certificate of Title (pink slip) over to the buyer with sale price, odometer reading, and date.
7. Submit the Notice of Transfer and Release of Liability (REG 138) to the California DMV within 5 days of the sale to release yourself from liability for the vehicle.
8. Advise the buyer that title must be transferred within 10 days of the sale to avoid late fees.

Common Pitfalls

• Failing to provide a smog certificate when required — California law places this obligation on the seller; an as-is clause does not transfer this duty to the buyer unless explicitly negotiated and documented.
• Concealing known defects and relying on 'as is' — California Civil Code § 1710 makes this fraud; courts have voided as-is clauses and awarded damages including attorney fees where sellers concealed known problems.
• Transferring a salvage vehicle on a clean title — California law treats this as fraud and vehicle code violation; penalties include rescission, civil damages, and potential criminal charges.
• Forgetting to file the Notice of Transfer (REG 138) within 5 days — without this filing, the seller remains on the hook for traffic tickets, accidents, and other liability incurred by the new owner.
• Using inconspicuous as-is language in small or buried text — California Commercial Code § 2316 requires conspicuousness; fine print can be challenged and the clause may not hold.

Pro Tip

California imposes more seller obligations in a private as-is sale than most states — smog compliance, strict fraud disclosure duties, and the 5-day notice of transfer filing. Get all disclosures in writing, handle the smog certificate, file the REG 138 promptly, and your as-is sale is well-protected.

California As-Is Bill of Sale — FAQs