Free California Vehicle Bill of Sale
California vehicle transfers run through the CA DMV using REG 135 as the optional Bill of Sale and the signed pink-slip title as the legal transfer document. The single most-missed step is REG 138 (Notice of Transfer and Release of Liability) — the seller must file it with DMV within 5 days of sale, ideally online at dmv.ca.gov, or remain on the hook for parking tickets, tolls, and civil liability the buyer racks up. Buyers then have 10 days to transfer title. For any car older than 4 model years, the seller must also deliver a smog certificate dated within 90 days, and use tax applies at rates of 7.25%–11.75% depending on location.
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California Vehicle Bill of Sale — What You Need to Know
Sales Tax Details
7.25% statewide base; effective rate 7.25%–11.75% with district add-ons. Use tax is collected by DMV at registration — record the true price.
Exemption: Some family transfers and gifts may qualify for a use tax exemption, claimed on REG 256 (Statement of Facts) — confirm with the DMV or CDTFA which relationships qualify.
Inspection Requirements
Smog certification required at transfer for gasoline vehicles more than 4 model years old (seller pays, ~$40–$80, certificate must be less than 90 days old at title transfer). VIN verification (REG 31) required for any vehicle last titled out of state.
Registration
Registration for this vehicle type is handled by California DMV — not the same agency that handles cars in California. Plan for separate filings.
California Vehicle Sale — Step-by-Step Checklist
- Complete REG 135 with full legal names, addresses, VIN, odometer, sale price, and date
- Sign the Certificate of Title on Line 1 (seller) and have the buyer fill in the new registered owner section
- File REG 138 (Release of Liability) online at dmv.ca.gov within 5 days of sale
- Provide a smog certificate dated within 90 days if vehicle is more than 4 model years old
- Complete the federal/state odometer disclosure on the title (required for vehicles of model year 2011 or newer)
- Use REG 262 (not notarized) if the title is damaged, altered, or missing the odometer line
- Buyer transfers title within 10 days at a DMV office or via dmv.ca.gov, as the law requires
- Use REG 256 Statement of Facts for any gift, family, or use-tax-exempt transfer
Common Pitfalls
- Skipping REG 138 — California will keep the seller liable for the buyer's tickets, tolls, and accidents until DMV processes the title transfer, which can take weeks
- Selling an older car without a fresh smog certificate — DMV will reject the buyer's transfer and the seller is legally required to provide it (cost $40–$80)
- Writing a low sale price to "save tax" — misstating the price on DMV paperwork is tax fraud
- Buyer missing the 10-day transfer window — and the DMV adds a late penalty if the transfer fee is not paid within 30 days of the transfer
- Using a photocopied or altered title — when the original title is damaged, DMV uses REG 227, with REG 262 (a controlled secure form from a DMV office or mailed by DMV, signed in ink, not notarized) for the odometer disclosure
Pro Tip
Bottom line: file REG 138 the day of sale, hand over a signed pink slip plus a fresh smog certificate, and have the buyer at a DMV office within 10 days. Skip any of those and California will charge somebody — usually the seller.