Selling a vehicle in the Golden State involves more than just a handshake and a "for sale" sign. To ensure a legal and smooth transaction, sellers must navigate specific California Department of Motor Vehicles (DMV) requirements.
Whether you are looking to sell a car in California for cash or simply upgrade your ride, this 2026 guide breaks down the essential paperwork and procedures to keep you protected.
What You’ll Learn
In this guide, we will answer:
What documents are required to legally sell a car in California in 2026?
When is a smog certification required, and who is exempt?
How do you fully release yourself from liability after the sale?
Overview
Step 1: Secure the California Certificate of Title
The most critical document is the California Certificate of Title, also known as the certificate of ownership. This proves you are the legal owner. If you have a lienholder (like a bank), you must obtain an electronic lien release before transferring ownership.
If your title is missing, you must file an Application for Replacement or Transfer of Title (REG 227). This form allows you to request a replacement or complete the transfer without waiting for a new paper title.
Step 2: The Smog Inspection Requirement
California is known for its strict emissions standards. Most gasoline-powered, hybrid, and alternative-fuel vehicles from model years 1976 and newer require a valid smog certification to change ownership.
Important Exemptions for 2026:
The 4-Year Rule: If your vehicle is four model years old or newer, a smog inspection is generally not required for a change of ownership. Instead, the new owner will pay a smog transfer fee to the DMV.
Electric Vehicles: Fully electric vehicles are exempt from smog checks.
Family Transfers: Selling or gifting a vehicle to an immediate family member (spouse, child, parent, etc.) usually does not require a smog check.
Note that a smog certificate is only valid for 90 days from the date of issuance.
Step 3: Record the Odometer Reading
Accuracy is key for the odometer reading at the time of sale. You must record the mileage on the title or use the Vehicle/Vessel Transfer and Reassignment (REG 262) form. Because REG 262 is a secure document, it cannot be downloaded; it must be obtained from a DMV office or by mail.
Step 4: Completing the Bill of Sale and Transfer
Finalize the sale by signing the title and providing a bill of sale. If there is no space on the title, use the Bill of Sale (REG 135). In specific cases, like tax-exempt family gifts, you will need a Statement of Facts (REG 256).
When a vehicle owner has passed away, the Affidavit for Transfer without Probate (REG 5) may be required to transfer the vehicle to a legal heir.
Step 5: Submit the Notice of Transfer and Release of Liability
The most vital step for your protection is the Notice of Transfer and Release of Liability (NRL/REG 138). California law requires you to notify the DMV within five calendar days of the sale. This ensures you are no longer responsible for future parking tickets, traffic violations, or civil actions.
Filing this form ensures you are no longer responsible for future parking tickets, traffic violations, or civil and criminal actions involving the vehicle after the sale date. You can submit the NRL online through the official California DMV Portal for immediate processing.
Consideration: Vehicle Retirement
If your car is older and struggles with emissions, consider vehicle retirement through the Bureau of Automotive Repair. In 2026, income-eligible owners can receive $2,000 to retire their vehicle, while others receive $1,350. This is often a better route than selling a non-compliant vehicle.
Final Thoughts: Close the Sale With Confidence
A successful car sale in California depends on accuracy, timing, and proper documentation. When each step is handled correctly, you avoid stress and long-term risk. A careful approach ensures the sale ends cleanly, securely, and on your terms.
Need to Move the Car After the Sale?
Once the paperwork is complete, the final step is getting the vehicle to its destination. AmeriFreight Auto Transport helps make car shipping simple, safe, and stress-free. We carefully vet carriers for FMCSA records before they handle your vehicle.
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Frequently Asked Questions (FAQs)
Are there any exemptions for the smog certification requirement when selling an older car in California?
Gasoline vehicles manufactured before 1975 and diesel vehicles manufactured before 1997 are exempt from smog requirements.
Do I need to get a new title for my car if the previous owner never transferred it out of their name?
Yes. To sell a car legally, the title must be in your name. You will need to complete the chain of ownership using bills of sale and, if applicable, a Statement of Facts (REG 256) to explain the situation to the DMV.
How long do I have to submit the Release of Liability form?
You must submit the Notice of Transfer and Release of Liability within five calendar days of the sale.
Do I need a bill of sale to sell a used car to a private party in California?
While the signed title can sometimes act as a transfer document, a separate bill of sale (REG 135) is highly recommended for record-keeping and is required if the title lacks space for sale details.
Disclaimer
This content is for general information only and is not legal or tax advice. California DMV rules may change. Always confirm current requirements with the California DMV or a qualified professional.
