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 before late fees stack. For any car older than 4 model years, the seller must also deliver a smog certificate dated within 90 days, and use tax is calculated on sale price or fair market value (whichever is higher) at rates of 7.25%–10.75% depending on county.
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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%–10.75% with district add-ons. Use tax is collected by DMV at registration on the sale price OR current market value, whichever is higher — undervaluing on REG 135 will trigger a CDTFA review.
Exemption: Family transfers (spouse, parent, child, grandparent, grandchild, sibling, domestic partner) are use-tax exempt with REG 256 Statement of Facts. Gifts also exempt with REG 256.
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 buyer sign Line 1A
- 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 under 20 years old)
- Use REG 262 (notary required) 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 to avoid late fees
- 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" — CDTFA cross-checks Kelley Blue Book; a $5,000 understatement can trigger a use-tax bill plus a 10% penalty plus interest
- Buyer missing the 10-day transfer window — late fees start at $15 and registration penalties can exceed $200 within 30 days
- Using a photocopied or altered title — DMV requires REG 262 (a controlled secure form available only at DMV offices) with a notary signature when the original title is damaged
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.