California Release of Liability: How to File REG 138
File your Notice of Transfer and Release of Liability within 5 days of selling. Online in minutes, free, and protects you from the buyer’s tickets and tolls.
TL;DR
- What it is: A Notice of Transfer and Release of Liability (NRL) tells DMV you’ve sold your car. File within 5 calendar days (CVC §5900).
- Why it matters: After DMV receives it, you’re no longer liable for the buyer’s parking tickets, traffic violations, or civil lawsuits (CVC §5602).
- How to file: Online at dmv.ca.gov/nrl (fastest, 1 business day) or mail REG 138 to PO Box 942859, Sacramento, CA 94259-0001. It’s free.
- What you need: License plate number + last 5 digits of VIN, buyer’s name/address, odometer reading, date of sale.
- Does NOT: Remove your name from DMV records (only the buyer’s title transfer does that) or transfer ownership.
Last verified against dmv.ca.gov: October 2026
What Is a Release of Liability?
A Notice of Transfer and Release of Liability (NRL) is the form you file with California DMV when you sell, gift, trade, or otherwise transfer a vehicle. It notifies DMV that you are no longer the owner.
The official form is REG 138 (current revision: REV. 3/2024). Filing is free — there is no DMV fee.
The 5-Day Rule (CVC §5900)
California Vehicle Code §5900 requires you to notify DMV within 5 calendar days of:
- Selling or transferring title/interest, AND
- Delivering possession of the vehicle
The REG 138 form itself prints in bold: “Protect Yourself – Submit this form within FIVE days!”
Calendar days, not business days. Weekends and holidays count. If you sell on a Saturday, day 5 is Thursday.
Missing this window leaves you exposed: if the buyer racks up parking tickets, toll violations, or gets in an accident before you file, those can come back to you.
How to File: 3 Methods
Department of Motor Vehicles
Notice of Transfer and Release of Liability
PO Box 942859, Sacramento, CA 94259-0001
No confirmation is sent for mailed forms — make a photocopy for your records before mailing.
What You Need to File
Per CVC §5900, DMV must collect:
- Vehicle description: license plate number + last 5 digits of VIN (online) or full details (paper)
- New owner’s name and address — you may write “unknown” if you don’t know, but DMV warns this may disqualify your liability protection
- Odometer reading at time of sale — choose: Actual mileage / Exceeds mechanical limits / Not actual mileage
- Date of sale
- Your name and address (seller)
- Selling price — enter 0 for gifts
One form per vehicle. Selling two cars? File two separate NRLs.
What the NRL Protects You From
After DMV receives your NRL (CVC §5602):
- Parking violations the buyer gets after the sale date
- Traffic violations (red-light cameras, toll evasion)
- Civil litigation from accidents after the sale date
- Registration renewal notices — DMV stops mailing them to you for that vehicle
Important: In a lawsuit, the court determines whether you complied with the law. Filing the NRL is your best protection, but it’s not an absolute shield — keep your bill of sale too.
Special Scenarios
Gifts ($0 sale)
Enter 0 for the selling price. You still must file within 5 days. The recipient’s name goes in the buyer fields. On the buying side, the cost is the buyer’s bill too: see what a title transfer costs in California — the $15 fee plus use tax, and the family-gift $0-tax case.
Junked, salvaged, or gave away
File the NRL even if you junked the car or gave it away for free. If DMV still shows you as the owner and the car is involved in an incident, you’ll get the notices. If the car was junked, the plates must also go back to the DMV — see our license plate surrender guide.
If you are on the buying side of a salvaged car instead, read our salvage title guide before you pay: a car holding only a Salvage Certificate cannot be driven or registered until it is repaired, inspected, and re-titled as revived salvage.
Owner died?
If the registered owner has died, there is no living seller to file an NRL — the heir, beneficiary, or personal representative handles the title instead, and the 5-day seller rule does not bind the estate. See Transferring a Car Title After Death in California for the TOD, joint-survivor, REG 5, trust, and probate paths.
Lease returns
The REG 138 covers “seller’s or lessee’s” — if you’re returning a leased vehicle, file the NRL to protect yourself.
Vessels (boats)
The NRL also applies to vessels. Use the CF number + hull identification number instead of plate/VIN.
Business buyer
Enter the business name in the last name field, continuing into the first-name field if needed.
Buyer is “unknown”
You may write “unknown” for the buyer’s name/address, but DMV warns: “If any of this information is missing, we may be unable to update the vehicle record, which may disqualify your liability exemption.” Always try to get the buyer’s real info.
Selling your car to buy another from a dealer?
If you’re selling your old car so you can buy a replacement at a dealership, know this before you sign: since October 1, 2026, the California CARS Act gives used-car buyers a 3-day right to cancel a dealer purchase or lease of $50,000 or less — as long as the car has been driven 400 miles or fewer since signing (a restocking fee applies). Our California CARS Act guide covers the cancellation steps, the exact fee math, and what to do if the dealer refuses.
What If the Buyer Never Registers?
This is the nightmare scenario: you sold the car, filed the NRL, but the buyer never transfers the title. DMV still shows you as the owner of record.
Your protection:
- Your filed NRL (with confirmation if online) proves you notified DMV
- Keep your bill of sale with the buyer’s signature, date, and amount
- If you get tickets or notices, respond with copies of your NRL confirmation + bill of sale
- Do NOT give the REG 138 form to the buyer to file — “they may never file it on your behalf.” File it yourself.
After You File
- Online: Print your confirmation page. Record updated within 1 business day.
- Mail: No confirmation sent. Your photocopy is your proof.
- Renewal notice arrives anyway? Either DMV didn’t receive your NRL or it was incomplete → file another one. (Notices are generated 60+ days before expiration and can cross in the mail.)
- “No match” error online? Double-check your entries. If still failing, call 1-800-777-0133.
Frequently Asked Questions
How many days do I have to file a Release of Liability in California?
5 calendar days from the date of sale (CVC §5900). Calendar days — weekends and holidays count. The REG 138 form says “Submit this form within FIVE days!”
Is there a fee to file a Release of Liability?
No, it’s free. DMV charges no fee for filing the NRL, online or by mail.
Can I file a Release of Liability online?
Yes. Go to dmv.ca.gov/nrl. You’ll need the license plate number + last 5 digits of the VIN. The record updates within 1 business day, and you get a confirmation page to print.
Where do I mail the REG 138 form?
Department of Motor Vehicles, Notice of Transfer and Release of Liability, PO Box 942859, Sacramento, CA 94259-0001. Make a photocopy before mailing — no confirmation is sent.
What happens if I don’t file a Release of Liability?
DMV still shows you as the owner. You could receive the buyer’s parking tickets, toll violations, and even be named in lawsuits from accidents. Always file within 5 days.
Does the Release of Liability remove my name from DMV records?
No. Only the buyer’s title transfer application (using the endorsed title you give them) removes your name. The NRL protects you from liability — it doesn’t transfer ownership.
Can I file if I don’t know the buyer’s information?
You may write “unknown,” but DMV warns this may disqualify your liability protection. Always try to get the buyer’s real name and address.
Do I need to file for a gifted car?
Yes. Enter 0 for the selling price. The 5-day rule still applies.
What if I junked or gave away my car?
File the NRL anyway. If DMV still lists you as owner and the vehicle is involved in an incident, you’ll get the notices.
Should I give the REG 138 to the buyer to file?
No. The form warns: “they may never file it on your behalf.” Always file it yourself.
I got a renewal notice after filing. What do I do?
File another NRL. Either DMV didn’t receive the first one, or it was incomplete. (If you filed online, do NOT resend — your confirmation is proof.)
Does the NRL cover boats?
Yes. The NRL applies to vehicles, trailers, and vessels. For boats, use the CF number + hull ID.
Related Guides
Sold Your Car? File Your Release of Liability Now
File your Notice of Transfer and Release of Liability within 5 days. It’s free, takes minutes online, and protects you from the buyer’s violations.
File NRL on dmv.ca.gov →Last verified against bar.ca.gov and dmv.ca.gov: October 15, 2026. Requirements change — confirm current rules with BAR or the DMV before your visit.