California DMV Release of Liability: Complete Guide

If you just sold, gifted, or otherwise transferred a vehicle in California, you have 5 calendar days to file a Notice of Transfer and Release of Liability (NRL) with the DMV. Filing the NRL helps establish that parking violations, traffic violations, and civil liability arising after the sale are the responsibility of the new owner, provided the legal requirements for the transfer and release are met. It does not transfer the title itself; only the buyer's completed registration paperwork does that.

What is a Release of Liability?

A Notice of Transfer and Release of Liability (NRL) tells the California DMV that you sold, gifted, or otherwise transferred your interest in a vehicle and identifies the person who received it. Under California Vehicle Code § 5602, once you've made a genuine sale or transfer, delivered the vehicle, and either signed over the title or filed the NRL, you're no longer the legal owner for purposes of civil or criminal liability — even if the buyer never gets around to registering the car in their own name.

When do you need to file?

You're required to notify DMV within 5 calendar days of the date you sold or transferred the vehicle and handed over possession. This deadline comes directly from California Vehicle Code § 5900, and it's calendar days, not business days — weekends count.

What information you'll need

Before you start, have the following ready:

• The new owner's name and address
• The vehicle's license plate number and the last five digits of the VIN
• The odometer reading at the time of sale
• The exact date of sale or transfer
• Your own name and address as the seller

If any of this is missing or illegible, DMV may not be able to update the vehicle record — which can disqualify your liability release entirely. If you cannot remember the buyer's name or address, DMV allows you to enter "unknown." However, DMV warns that incomplete information may prevent the vehicle record from being updated, which could affect your liability exemption.

How to file

Online is the faster option: DMV's online NRL system lets you file immediately. DMV says the vehicle record will be updated within one business day after an electronic NRL is filed, and you'll get a confirmation you can print right away — that confirmation is your proof of filing, so hold onto it.

You can also mail a paper REG 138 form to the address printed on it. Mail takes longer, and DMV won't notify you when it's received, so photocopy the completed form before you send it.

What an NRL does — and doesn't — do

Filing an NRL releases your liability. It does not remove your name from the vehicle record or transfer the title — that only happens when the buyer completes their own registration paperwork and pays the applicable fees. You can have filed a perfectly valid NRL and still technically show up as the last registered owner until the buyer does their part.

What happens if you don't file

If DMV does not receive a valid NRL, its records may continue to associate you with the vehicle. That can lead to registration renewal notices and problems involving parking or toll violations after the sale. Filing the NRL promptly creates an official record of the transfer and helps establish when your responsibility for the vehicle ended. If you keep getting renewal notices for a car you no longer own, it usually means DMV never received your NRL, or received one that was incomplete — the fix is simply filing again.

Ready to file? File your Release of Liability directly through USACarTags and skip the DMV paperwork — we'll take care of submitting it for you.