Bill of Sale & Release of Liability
Two documents that protect both sides of a private car sale in California, and take a few minutes each to get right.
The bill of sale
A bill of sale is not legally required for a private-party vehicle sale in California, but it is the only record you have if a dispute comes up later about the price, the sale date, or the vehicle's condition at the time of sale. The DMV's own REG 135 form works as a ready-made template if you would rather not write one from scratch.
A bill of sale should include:
- Buyer and seller full names and signatures
- Sale date and sale price
- Vehicle year, make, model, and VIN
- Odometer reading at time of sale
- Whether the vehicle is sold "as is" or with any stated warranty
The Release of Liability
This one matters more than most sellers realize. Until you file a Release of Liability, the vehicle stays registered to you in the DMV's system, which means parking tickets, toll violations, or civil liability the new owner incurs after the sale can still land on your record.
California Vehicle Code §5900 requires you to notify the DMV within 5 calendar days of selling or transferring a vehicle, using the Notice of Transfer and Release of Liability (REG 138). File it online using the vehicle's license plate or VIN and the sale date, your record updates within 1 business day. It only needs your information, the buyer does not need to do anything for you to file it.
→ File your Release of Liability on the official DMV siteWhat the buyer needs to do next
The buyer has 10 days to submit the title transfer to the DMV: the signed title, a completed Application for Title or Registration (REG 343), proof of insurance, a smog certificate if required, and payment for registration fees and use tax. See our vehicle registration guide for the full process and current fees.
Bill of sale & release of liability — FAQ
Do I need a bill of sale to sell a car in California?▾
California does not require a standardized bill of sale form for private-party sales, but having one protects both sides: it documents the sale price, date, odometer reading, and that the vehicle changed hands "as is" if that was the agreement. The DMV's REG 135 form works as a bill of sale if you want an official template.
What is a Release of Liability and why does it matter?▾
A Release of Liability tells the DMV you are no longer the registered owner as of the sale date. Filing it protects you from parking tickets, toll violations, or liability the new owner incurs after the sale, since the vehicle stays under your name until you file it.
How do I file a Release of Liability?▾
California law requires you to notify the DMV within 5 calendar days of the sale, using the Notice of Transfer and Release of Liability (REG 138). File it online through the DMV website using the vehicle's license plate or VIN and the sale date, your record updates within 1 business day, and it does not require the buyer's cooperation.
What should a California bill of sale include?▾
Buyer and seller names and signatures, the sale date, sale price, vehicle description (year, make, model, VIN), and the odometer reading. Note clearly whether the vehicle is sold "as is" or with any warranty.
Does the buyer or seller submit the title transfer paperwork?▾
The buyer submits it to the DMV, since they are the one registering the vehicle. The seller's job is to sign the title, hand over a bill of sale if used, and file the Release of Liability, that last step is on the seller regardless of what the buyer does.