11.145 Repossessions–New Vehicles (California Commercial Code §9503)
For new unregistered vehicles repossessed from a dealer, the following must be submitted:
- An Application for Title or Registration (REG 343) (PDF) form completed by the buyer.
- If the REG 343 does not indicate the vehicle was not registered previously, a Statement of Facts (REG 256) (PDF) form completed by the finance company or the buyer stating the vehicle was not previously registered.
- A Verification of Vehicle (REG 31) (PDF) form.
- A certified copy of the trust receipt or flooring note agreement between the finance company and the dealer.
- A Certificate of Repossession (REG 119) form executed by the finance company.
- Bills of sale, as needed, to complete the chain of ownership.
- A smog certification, if appropriate.
- Registration fees based on the original (first buyer’s) purchase price and date of sale and a transfer fee for the transfer to the second buyer. A smog certification is not required provided the original REG 397 is submitted.
Note If registration fees are paid within 20 days from date of sale to the first buyer, the dealer will not be charged an ASF for an over 20-day violation, regardless of the length of time the report of deposit of fees (RDF) is held pending sale to a second buyer. The dealer has 30 days to submit the transfer application without penalty.
When a repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction, the renewal penalties due may be waived if all fees due are paid within 60 days of the last auction date.
In the case of multiple wholesale motor vehicle auctions, a subsequent auction restarts the 60 days, as long as the repossessed vehicle stays within a legal owner/dealer/wholesale motor vehicle auction cycle (even if one of the dealers is out of state). The penalty waiver may be applied through the final wholesale auction date if paid within 60 days of the last auction.
If the vehicle is sold to a retail customer during the legal owner/dealer/wholesale motor vehicle auction cycle and the vehicle goes back to a wholesale motor vehicle auction (such as, due to an unwind), the renewal fees must be paid within 60 days of the last auction date before that retail sale to avoid penalties.
The dealer requesting a renewal penalty waiver must submit a Statement of Facts (REG 256) (PDF)form which states the following:
- The dealer is requesting a renewal fee penalty waiver.
- The vehicle is a repossessed vehicle.
- The repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction.
- The date of the last wholesale motor vehicle auction and that all renewal fees due have been paid within 60 days of the last wholesale motor vehicle auction date.
11.140 Repossessions—Legal Owner not on Record (VC §5909)
In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, and in Chapter 12 for nonresident vehicles, the following must be submitted:
- The original or certified copy of the Conditional Sales Contract or Security Interest Agreement.
- A Certificate of Repossession Security Interest (REG 119) form.
- A bill of sale from the repossessor to the purchaser if the vehicle is not being registered to the repossessor.
- A repossession fee for the unrecorded transfer to the repossessor if the vehicle is registered in California. If the vehicle is registered to other than the repossessor, a transfer fee is also due.
11.135 Repossessions—California—Registered Vehicles (VC §5909)
When a repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction, the renewal penalties due may be waived if all fees due are paid within 60 days of the last auction date.
In case of multiple wholesale motor vehicle auctions, a subsequent auction restarts the 60 days, as long as the repossessed vehicle stays within a legal owner/dealer/wholesale motor vehicle auction cycle (even if one of the dealers is out of state). The penalty waiver may be applied through the final wholesale auction date, if paid within 60 days of the last auction.
If the vehicle is sold to a retail customer during the legal owner/dealer/wholesale motor vehicle auction cycle, and the vehicle goes back to a wholesale motor vehicle auction (such as, due to an unwind), the renewal fees must be paid within 60 days of the last auction date before that retail sale to avoid penalties.
In addition to the procedures listed in Basic Transfer Requirements section in this chapter, the following must be submitted:
- A Certificate of Repossession (REG 119) form.
- Repossession and transfer fees, if the repossessor is not the registered owner.
- The dealer requesting a renewal penalty waiver must submit a Statement of Facts (REG 256) (PDF) form which states the following:
- The dealer is requesting a renewal fee penalty waiver.
- The vehicle is a repossessed vehicle.
- The repossessed vehicle is sold through a dealer conducting a wholesale motor vehicle auction.
- The date of the last wholesale motor vehicle auction and that all renewal fees due have been paid with within 60 days of the last wholesale motor vehicle auction date.
Note On leased vehicles, the lessor is the registered owner so the vehicle returns to the lessor if the lessee default on payments. The lessor’s release is required on the title to transfer ownership. A repossession fee is not due if the repossessed leased vehicle is subsequently leased to another lessee by the lessor.
11.130 Parking or Toll Violations (VC §§4760, 4764, and 22651.7)
Parking or toll violations on file prior to the transfer date are removed from the vehicle record when a registered owner transfer occurs.
Note DMV must issue a receipt for the parking fees when the application contains parking violation fees. The parking fees are transmitted to the courts and the receipt is issued to the applicant to be used as proof of payment to reduce possibility of vehicle impoundment or immobilization (VC §4760).
Family/Trust Transfer With Parking/Toll Violations
Transfers of vehicle ownership from the registered owner to their revocable trust or specific family members cannot be completed when unpaid parking and/or toll violations are on the vehicle record. Transfers out of a revocable trust are not impacted. All violations shown on the record must be cleared by the issuing parking/toll agency or paid to the DMV and all other required fees and documents submitted to complete the transfer of ownership.
Note Affected family members are the registered owner’s natural or legally-adopted parent, grandparent, child, grandchild, spouse, domestic partner, and siblings.
When the application contains a Statement of Facts (REG 256) (PDF) form declaring a family transfer exemption from use tax and/or smog inspection, or the transfer is to the revocable trust of the current registered owner, submit the application to DMV for processing.
11.125 Notice of Transfer and Release of Liability (NRL/IRL) (REG 138) (VC §§5602 and 5900)
The registered owner or the person in physical possession of a vehicle being sold/transferred must submit a completed REG 138 (PDF) to DMV within five calendar days of the sale (transfer). This can be done using a printed REG 138 (PDF)or online, using the Internet Notice of Release of Liability (IRL) on the DMV Internet website. DMV cannot update the vehicle record if the transfer date is missing.
The Notice of Transfer and Release of Liability (REG 138, Rev. 1/2024) form has been revised with DMV’s webpage addresses and a QR code. Other changes include updated verbiage throughout the form, the addition of a privacy statement on the collection of personal data, and the removal of pictures.
Note Continue to accept REG 138 (Rev. 2/2012) until depleted.
Owners who transfer and deliver possession of a vehicle and a properly endorsed Certificate of Title to the purchaser are not subject to civil or criminal liability for the parking, abandonment, or operation of the vehicle by another, provided the owner has delivered or mailed a REG 138 (PDF)to DMV or has submitted to DMV an IRL or the documents and fees required to transfer ownership of the vehicle to the new owner.
When a REG 138 (PDF) is received, date stamp the upper-left corner above any printing and forward it to:
Department of Motor Vehicles
Incoming Mail Unit, MS A235
PO Box 942859
Sacramento, CA 94259-0001
IRL—Sellers may submit an IRL on the DMV website.
Expedite Update of NRL/IRL Procedure—Use this procedure when a customer submitted an NRL or IRL, but the vehicle record was not updated, and as a result, the customer is receiving parking or toll violations and/or delinquent registration notices.
The following must be submitted:
- A copy of the original REG 138 (PDF).
- A complete IRL transaction receipt.
- A new REG 138 (PDF).
11.120 Nonresident Military (NRM) Vehicle Owners
Transfer from a NRM servicemember or their nonresident spouse to another NRM owner, in addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:
- A Nonresident Military Exemption Statement (REG 5045) (PDF) form.
- Verify the new NRM owner or nonresident spouse’s military ID.
11.115 Multiple Transfers (VC §5750)
A multiple transfer is when a vehicle is sold more than once (other than dealer to dealer) without a new title being issued.
In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:
• The name, address, and signature for all buyers on the California Certificate of Title. However, a signed Vehicle/Vessel Transfer and Reassignment Form (REG 262) and the printed name of all buyers on the Certificate of Title may be accepted in lieu of the written signature of previous buyers on the title.
Important The current buyer(s) to whom ownership of the vehicle is being transferred must sign the Certificate of Title.
• The fees due. A transfer fee is due for each buyer. However, only the last transfer is subject to a transfer penalty. Use tax paid by a previous buyer cannot be used for any fees due for a subsequent buyer.
• Identify the chain of ownership by writing “I,” “II,” etc., in front of each buyer’s name on the title and the REG 262.
11.100 Legal Owner Is a Dealer Out of Business (as determined by DMV’s records)
When a dealer is shown as the legal owner/lienholder of record and cannot be located, the owner must contact the local DMV field office to:
- Determine if the dealer is out of business (DOB)
- Obtain the DOB owner’s name and telephone number shown on DMV records.
If the input document does not have a designated space for the lessee address, the lessor must provide the lessee’s address on a Statement to Record Ownership (REG 101) form whenever it differs from the registered owner address shown on the application documents.
The owner must contact the local DMV field office:
DOB Contact Chart
| If | Then |
|---|---|
| IfThe DOB owner can be located | ThenObtain a release on the original title or Application for Replacement or Transfer of Title (REG 227) or a Lien Satisfied/Title Holder Release (REG 166). |
| IfThe DOB owner cannot be located | ThenEvidence of the applicant’s attempt to obtain the owner’s release or lien satisfied in the form of a certified letter returned to the sender, unclaimed and unopened, must be submitted. |
| IfThe letter was delivered, but a response was not received | ThenThe postal receipt acknowledging receipt of the letter by the addressee must be submitted. Sufficient time (at least 30 days) must have elapsed to give the recipient time to respond. |
- Statement of Facts (REG 256) (PDF) form stating the current retail value of the vehicle and what efforts were made to obtain the release.
- A Motor Vehicle Bond for the value of the vehicle must be submitted.
- Any fees due.
- If you have difficulty locating the legal owner/lienholder to obtain a release, the Financial Institution Listing on the DMV website dmv.ca.gov is an alphabetized listing of banks, credit unions and financial/lending institutions, developed to help locate the legal owner/lienholder shown on the vehicle record.
- This information can also be obtained on the FDIC website, fdic.gov and search for Bank/Institution Directory.
- When the legal owner/lienholder cannot be located for a release or lien satisfied, in addition to all transfer or nonresident requirements, the following are required:
- Statement of Facts (REG 256) (PDF) form stating the current retail value of the vehicle and what efforts were made to obtain the release.
- Evidence of the applicant’s attempt to obtain the legal owner’s release or lien satisfied in the form of a certified letter returned to the sender, unclaimed and unopened.
11.095 Legal Owner Is an Individual Company (not a lending institution or dealer)
When an individual or a company that is not a lending institution or dealer is shown as the legal owner of record and that individual cannot be located for a release or lien satisfied, in addition to all transfer or nonresident requirements, the following are required:
- A Statement of Facts (REG 256) (PDF) form completed by the applicant stating the current retail value of the vehicle and what efforts were made to obtain the release.
- Evidence of the applicant’s attempt to obtain the legal owner’s release in the form of a certified letter returned to the sender, unclaimed and unopened.
Note If the letter was delivered, but a response was not received, the postal receipt acknowledging receipt of the letter by the addressee is acceptable. Sufficient time (at least 30 days) must have elapsed to give the recipient time to respond.
- A Motor Vehicle Bond for the value of the vehicle.
- All fees due.
11.090 Legal Owner (Lienholder) Transfers (VC §5603)
The following must be submitted:
- The Certificate of Title endorsed as follows:
| If the Transaction Is a | The Certificate of Title Must Be Completed as Follows |
|---|---|
| If the Transaction Is aChange of lienholder and the registered owner(s) remains the same | The Certificate of Title Must Be Completed as Follows Note If a vehicle is two model years old or newer, the California Certificate of Title is the only document that can be used to release the lien. Note The registered owner’s signature is not required on the title. For change of lienholder in conjunction with a goldenrod conversion. |
| If the Transaction Is aSole owner(s) adding a lienholder | The Certificate of Title Must Be Completed as Follows |
- Other documentation, as required.
- A transfer fee and any other fees due.