California Title Transfer

Transferring a California title is structured to protect both buyer and seller — but only if both follow the steps. Sellers must release liability within 5 days; buyers must complete the title transfer within 10. Skip either deadline and the consequences run from late fees to registration suspensions to "title jump" disputes that take years to fix.

The seller's responsibilities

1. Sign the title assignment. Sign exactly as your name appears on the front of the title. If two owners are listed with "and" between them, both must sign; with "or," either can sign alone.
2. Record the odometer reading. Required by federal and state law on vehicles less than 20 model years old.
3. Complete the smog certificate. Provide the buyer with a passing smog certificate dated within the last 90 days, except for transfers exempt under California's family-transfer or four-year-vehicle exemptions.
4. File the Notice of Transfer (REG 138). Submit through MyDMV within 5 days of the sale date. This is the seller's "release of liability" — without it, parking tickets and accidents involving the car can come back to the seller.
5. Hand the title and a bill of sale to the buyer. Use the REG 262 secure transfer form for additional disclosure if your title is paperless.

The buyer's responsibilities

1. Take the signed title to a DMV office. Within 10 days of the purchase date.
2. Bring all required documents. Signed title or REG 262, bill of sale, smog certificate (where required), proof of insurance meeting California's 15/30/5 minimums, photo ID, and payment for transfer fees and use tax.
3. Pay use tax. Calculated at the buyer's local sales-tax rate on the purchase price (or California Vehicle Value Guide, whichever is higher).
4. Pay the title transfer fee. $15 for the title transfer and a separate VLF prorated for the remainder of the registration cycle.
5. Receive the new title. Mailed in 4-8 weeks. The temporary registration card from the field office covers the gap.

The REG 262 secure transfer form

California issues some titles as "paperless" or "Electronic Lien and Title" (ELT). When the title isn't a paper document the seller can hand over, both parties complete a REG 262 at the time of sale. The form must be filled out by hand (carbon-paper original) and includes the odometer disclosure, the assignment, and a power of attorney section that lets the buyer's DMV process the transfer when the lender's electronic title is later released.

Late penalties for the buyer

Beyond 10 days from purchase, California assesses transfer-late penalties on a sliding scale starting at $15 and climbing for longer delays. After 1 year, the buyer may be required to provide additional documentation (statement of facts, court order if the title is contested) before the DMV will complete the transfer.

Family transfers and gifts

California waives use tax on transfers between immediate family members (parent-to-child, child-to-parent, between spouses, between domestic partners, and grandparent-to-grandchild). The transfer is documented with a Statement of Facts (REG 256) marking the family-transfer exemption. The transfer fee still applies; smog certification is also waived for most family transfers.

Inherited vehicles

California processes inherited vehicle title transfers based on the size of the estate. For estates valued under $184,500 (the 2025 small-estate threshold), an Affidavit for Transfer Without Probate (REG 5) lets the heir transfer the title without going through formal probate. Larger estates require a probate court document.