When you sell a car in California, you have 5 calendar days to tell the DMV, using a Notice of Transfer and Release of Liability (NRL, form REG 138). The DMV says it is what makes later parking tickets, traffic violations and civil claims the new owner's responsibility. It is filed online on the DMV's NRL page or by mail, and it does not transfer the title. Via Rapida Services is a licensed registration service and insurance agency, not the DMV.
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The seller (not the buyer) files the NRL. The DMV's NRL page says you must notify it within 5 calendar days from the date you sell or transfer the title or interest in the vehicle and deliver possession to the new owner, citing Vehicle Code §5900. The DMV's registration procedures manual, section 11.125 says the same, and adds that the DMV cannot update the vehicle record if the transfer date is missing. You can file online or mail a completed REG 138.
| The NRL does | The NRL does not |
|---|---|
| Tells the DMV the date you sold the vehicle and who you sold it to | Transfer the title. The DMV says an NRL "does not qualify as a transfer of ownership" |
| Makes liability for parking violations, traffic violations and civil litigation after the date of sale the responsibility of the new owner, once the DMV receives it (the DMV cites Vehicle Code §5602) | Remove your name from the vehicle record. Only the buyer's transfer application, using the endorsed title you gave them, does that |
| Stops registration renewal notices being mailed to you for that vehicle once the record is marked | Cancel your insurance. The DMV is not your insurer, so you do that separately |
The DMV also notes that a court decides whether you complied with the law if there is ever a suit or complaint. The notice is protection, not a guarantee, which is why the details on it matter.
The DMV is required to collect the vehicle description, the VIN, the new owner's name and address, the odometer reading, the date of sale and your name and address under §5900. If any of it is missing, it says, the DMV "may be unable to update the vehicle record," which "may disqualify your liability exemption." If you cannot remember the buyer's name, the DMV says you may enter "unknown" in the buyer fields, but it repeats the warning that missing information can cost you the exemption. Write the buyer's name and address on the bill of sale at the time of the sale, and check their ID if you can.
A business can be the seller or the buyer. The DMV says to put the business name in the last-name field, continuing into the first-name field if needed.
The NRL asks for the odometer reading and which of three statements applies. The DMV defines them this way: actual mileage means the odometer shows the actual mileage; exceeds mechanical limits means it has rolled over; not actual mileage means the odometer is broken or has been replaced, or the owner is unsure of the true mileage. Pick the one that is true. The title transfer has its own odometer disclosure rules, covered in the DMV's odometer disclosure section.
The NRL tells the DMV about the sale. It does not tell your insurance company, and your policy is a contract with its own cancellation and refund rules. Contact your insurer or agent to end coverage on the sold car or move the policy to your next vehicle, and ask for the effective date in writing. Do not cancel before the buyer has the car and you have filed, because until the DMV record is updated the car can still be registered in your name. California tracks insurance on registered vehicles and can suspend a registration when coverage ends and nothing replaces it. Our insurance lapse glossary entry cites the statutes, and the DMV explains its process on the suspensions page.
Buying your next car? Insurance has to be in place before you drive it. See just bought a car.
5 calendar days from the date you sell or transfer the vehicle and deliver possession, according to the DMV's NRL page, which cites Vehicle Code §5900.
No. The DMV says submitting an NRL does not qualify as a transfer of ownership. The buyer has to apply for the transfer using the endorsed title you gave them. Only that application removes your name from the vehicle record.
Yes, from the DMV's NRL page. The DMV says the vehicle record is updated within 1 business day of an electronic filing. Print the confirmation page and keep it as proof. You can also mail a completed REG 138.
The DMV says you may enter "unknown" in the buyer's name and address fields, but it warns that missing information can mean it cannot update the record, which may disqualify your liability exemption. Get the buyer's details at the sale.
Not once the DMV has the NRL and the record is marked. If a renewal notice arrives, the DMV says either it did not receive the NRL or the NRL was incomplete or illegible, and you must submit another.
The NRL does not do that. Your policy is a separate contract, so contact your insurer or agent about ending coverage or moving it to a new vehicle, and do it after the buyer has the car and the NRL is filed.
Reviewed by Santo Militello, California-licensed Property & Casualty agent (CA License #1737723) and owner of Via Rapida Services. Insurance City Agency, LLC · CA License #6003045. Our licensed team brings more than 70 years of combined insurance experience. Call (209) 670-1556. Last reviewed 2026-10-09.
Talk with a licensed agent about ending or moving coverage. The DMV decides what it requires for the NRL and the title.