Notice of Transfer and Release of Liability

What is a Notice of Transfer and Release of Liability?

The Notice of Transfer and Release of Liability (NRL) is the form used to notify the Department of Motor Vehicles (DMV) that you have sold or transferred your vehicle or vessel to another party. It is used only when the registered ownership of the vehicle or vessel has changed. Legal owner transfers (transfers between lenders or removal of a lienholder from the title) do not require an NRL.

How Does the Notice of Transfer and Release of Liability Protect Me?

When this form is properly completed and the information is recorded by DMV, liability for parking and/or traffic violations and civil litigation resulting from operation after the date of sale becomes the responsibility of the subsequent purchaser.

When Does the Law Require Me to Notify DMV?

Whenever you sell or transfer your vehicle or vessel, Vehicle Code §5900 states that you must notify DMV within five calendar days following the sale or transfer.

Does the NRL Remove My Name from DMV's Records?

No. Only the buyer's application for transfer, using the endorsed title received from you, can do that. However, when the information required on the NRL is received by DMV, you are no longer responsible for civil or criminal actions arising with the vehicle after the date of sale.

For example, you will not be liable for:

• parking or traffic violations resulting from operation of the vehicle after the sale or transfer date, or
• civil litigation resulting from use of the vehicle after the date of sale.

NOTE: In the case of a suit or complaint, the court is responsible for determining if you have complied with the law and are exempt from civil and/or criminal liability.

Additionally, when the NRL information is received by DMV and the vehicle record is marked, no further renewal billing notices will be mailed to you for the reported vehicle.

What Information is Needed on the NRL?

The Vehicle Code requires you to provide DMV with the following information:

• Date of sale
• Owner of record's name and address
• Buyer or transferee's name and address
• Description of the vehicle or vessel including the
  • vehicle (or vessel hull) identification number
  • year model
  • vehicle make or vessel builder
  • vehicle license plate or vessel CF number
• Vehicle odometer reading as of the sale or transfer date

If any of this information is missing, erroneous, or illegible, the department may be unable to update the computer record and/or these conditions may disqualify your liability exemption.

Must I Complete the NRL Myself?

No. However, completing and mailing the NRL personally is the best way to ensure that DMV gets all the information in a timely manner. You may have someone else complete and file the NRL on your behalf if they are in possession of the vehicle at the time of sale. For example, if your brother sells your car for you while you are away on vacation, he can complete and file the NRL with the department.

NOTE: For your protection it is strongly suggested that you make a photo copy of the completed REG 138 form for your file.

Should I Mail the NRL?

Yes! This is the best way to notify DMV. Mail the completed form to:

Department of Motor Vehicles
P.O. Box 942859
Sacramento, CA 94259-0001

FFVR - 9/LU 03-18-02