Knowing how to release liability after selling a car in California keeps you safe from tickets, toll bills, and even crashes that happen after the sale. The good news is that it only takes a few minutes. You tell the DMV that the car is no longer yours, and the DMV takes your name off the car’s record.
If you skip this step, the car can still be tied to you. That can turn into a big headache for someone who thought the deal was done. This guide shows you exactly what to do, how fast to do it, and what to keep for your records.
What Is the Release of Liability in California?
The release of liability is a notice you send to the California DMV after you sell your car. It tells the state that you no longer own the vehicle. The official name is the Notice of Transfer and Release of Liability, or NRL.
Why the NRL Protects You
Once the DMV gets your NRL, you are no longer responsible for what happens with the car. That includes:
- Parking tickets and traffic camera tickets
- Toll road and bridge charges
- Accidents involving the car
- Towing and impound fees
- Abandoned vehicle fines
Is It the Same as Signing the Title?
No. Signing the title (the “pink slip”) hands over ownership to the buyer. The NRL is a separate step. Even if you signed the title, you should still file the NRL. Many sellers forget this part.
How Long Do I Have to File the NRL in California?
You have 5 days from the date of sale to file the NRL with the DMV. This is the deadline set by California law.
Why You Should File the Same Day
Do not wait until day 5. The sooner the DMV has your notice, the sooner you are protected. Many sellers file right when the buyer drives away or hands over the money.
What Happens If You File Late?
You can still file after 5 days, but you may have more risk. If the buyer gets a ticket or has a crash before the DMV gets your notice, the DMV record may still show you as the owner. Filing late can lead to more phone calls, letters, and proof you need to provide.
| Step | Deadline |
|---|---|
| Seller files NRL with DMV | Within 5 days of the sale |
| Buyer submits transfer paperwork | Within 10 days of the purchase |
| Late transfer penalties for buyer | Start after 30 days |
How to Release Liability Online
Filing online is the fastest way. It is free, and you get a confirmation right away. Most people finish in about five minutes. You can start on the official California DMV website.
What You Need Before You Start
Have this information ready:
- License plate number
- Vehicle Identification Number (VIN)
- Date of sale
- Odometer reading at the time of sale
- Buyer’s full name and address
- Your own name and address
Steps to File the NRL Online
- Go to the DMV website and find the Notice of Transfer and Release of Liability.
- Enter your plate number and VIN.
- Fill in the sale date and mileage.
- Add the buyer’s name and address.
- Submit the form.
- Save or print your confirmation.
Keep Your Confirmation
Take a screenshot or print the confirmation page. This is your proof that you filed on time. Keep it for at least a few years.
How to Release Liability by Mail
You can also file by mail if you prefer paper. Use DMV form REG 138. You can print it from the DMV website or pick one up at a DMV office.
Filling Out the Paper Form
The paper form asks for the same details as the online form. Write clearly so the DMV can read everything. Double check your VIN and plate number, since a small mistake can slow things down.
Tips for Mailing the Form
- Make a copy of the filled-out form before you send it
- Use a mail service with tracking if you can
- Mail it the same day you sell the car
- Write down the date you mailed it
Mailing is slower than filing online, so online is the better choice if you are close to the 5-day deadline.
What to Do With Your Title (Pink Slip) When You Sell
Your title proves you own the car. When you sell, you sign it over to the buyer. Do this part carefully so there are no problems later.
Sign the Title the Right Way
On the title, you will need to:
- Sign on the line for the seller
- Write the sale date
- Enter the odometer reading
- Add the buyer’s name and address
Do not leave blanks. Do not sign over the title before you have the buyer in front of you and payment in hand.
What If You Lost the Title?
You can ask the DMV for a duplicate title before you sell. This takes extra time, so do it early. If the car has a loan, the lender may hold the title. In that case, pay off the loan first so you can hand over a clean title.
Why You Should Make a Bill of Sale
A bill of sale is a simple paper that shows the details of the deal. California does not always require one, but it is a smart thing to have. It gives you one more piece of proof that the car left your hands.
What to Put on a Bill of Sale
- Date and time of the sale
- Price paid
- Car make, model, year, and VIN
- Odometer reading
- Names and signatures of both people
- A line that says the car is sold “as is”
Keep Your Own Copy
Make a copy for yourself and give one to the buyer. You can also snap a photo of the buyer’s driver’s license and the signed paper. Store these with your NRL confirmation.
What About Smog Checks When You Sell?
In California, the seller is usually the one who must provide a valid smog certificate when selling a gas-powered car. The certificate must be less than 90 days old.
Cars That Do Not Need Smog
Some vehicles are exempt from this rule. These include:
- Electric cars
- Gas cars from 1975 or older
- Diesel cars from 1997 or older
- Newer cars that are four model years old or less
Selling a Junk Car
If you sell a car that does not run or is only good for parts, the rules are often simpler. Cars sold to a licensed dismantler usually do not need a smog check. You still need to sign the title and file the NRL. A trusted junk car buyer can walk you through the paperwork.
What to Do After You File the NRL
Filing the NRL is the biggest step, but a few small tasks remain. Finish these so everything is wrapped up.
Cancel or Change Your Car Insurance
Call your insurance company after the car is sold. Ask them to remove the car from your policy. Do not cancel before the sale is complete, because you are covered until the car is truly gone. If you buy a new car, you can move your policy over.
Remove Your Toll Tag and Parking Permits
Take off any toll tags like FasTrak. Remove any parking permits from your windshield. If you forget, tolls can keep getting charged to your account.
Watch Your Mail
For a few weeks, keep an eye out for mail from the DMV, toll agencies, or parking offices. If something arrives for a car you already sold, you can use your NRL confirmation and bill of sale to show you are not responsible.
Common Mistakes to Avoid
Many sellers run into trouble over small things. Here are the mistakes that cause the most problems.
Waiting Too Long to File
The 5-day clock starts on the sale date. Do not put it off. File the same day if you can.
Giving the Wrong Odometer Reading
Write the true mileage. A wrong number can cause problems with the DMV and the buyer.
Leaving Your License Plates on the Wrong Car
In California, license plates generally stay with the car. You do not remove them when you sell, unless you have special plates and choose to keep them. Check with the DMV if you have personalized plates and want to keep the number.
Skipping the NRL Because You Signed the Title
Signing the title does not release you. The NRL is what tells the DMV that you are done.
Releasing Liability When You Sell to a Junk Car Buyer
Selling a junk car, a wrecked car, or a car that no longer runs? You still need to release liability. Many people think the rules do not apply to old cars. They do.
Steps for a Junk Car Sale
- Sign the title and hand it to the buyer
- Write the sale date and mileage
- Get a receipt or bill of sale
- File the NRL with the DMV the same day
- Cancel your insurance and remove any tags
Why It Matters for Junk Cars
A junk car may get towed away and sit in a yard before it is dismantled. If it is still in your name during that time, any tickets or fees can come back to you. Filing the NRL right away keeps your record clean.
Quick Checklist: Release Liability After Selling a Car
Use this short list as a guide when you sell:
- Sign the title and give it to the buyer
- Write the correct odometer reading
- Make a bill of sale and keep a copy
- File the NRL with the DMV within 5 days
- Save your confirmation page
- Cancel your insurance
- Remove toll tags and permits
- Check your mail for a few weeks
Releasing liability after selling a car in California is quick, free, and one of the best ways to protect yourself after the sale. File the NRL online the same day, keep your proof, and you can move on with peace of mind. If you have a used, damaged, or junk car you are ready to sell, SellMyCarSoCal.com buys cars across Southern California and can help make the paperwork simple.