{"id":13966,"date":"2020-04-15T15:26:54","date_gmt":"2020-04-15T22:26:54","guid":{"rendered":"https:\/\/www.dmv.ca.gov\/portal\/handbook\/vehicle-industry-registration-procedures-manual-2\/transfers\/leased-vehicles\/"},"modified":"2024-03-08T14:20:40","modified_gmt":"2024-03-08T22:20:40","slug":"leased-vehicles","status":"publish","type":"dmv_handbook","link":"https:\/\/www.dmv.ca.gov\/portal\/handbook\/vehicle-industry-registration-procedures-manual-2\/transfers\/leased-vehicles\/","title":{"rendered":"11.085 Leased Vehicles (VC \u00a74453.5)"},"content":{"rendered":"\n<p>Leased vehicles <strong>must <\/strong>be registered in the names of both the lessor and the lessee.<\/p>\n\n\n\n<p>The lessor is designated as LSR; the lessee is designated as LSE. Certificates issued in 1985 or prior may show the lessee as \u201ccare of (c\/o)\u201d (the \u201cc\/o\u201d was part of the address field).<\/p>\n\n\n\n<p>If the input document does not have a designated space for the lessee address, the lessor <strong>must<\/strong> provide the lessee\u2019s address on a <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/statement-to-record-ownership-reg-101-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Statement to Record Ownership (REG 101) (PDF)<\/a> form whenever it differs from the registered owner address shown on the application documents. If a <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/statement-to-record-ownership-reg-101-pdf\/\">REG 101 (PDF)<\/a> is completed, it <strong>must<\/strong> be the top document.<\/p>\n\n\n\n<p><span role=\"region\" class=\"format-label--note\"><span class=\"format-label__text\">Note<\/span> An application on a report of deposit of fees (RDF) solely because the lessee address space on the title or <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/statement-to-record-ownership-reg-101-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">REG 101 (PDF)<\/a> is blank must not be returned. Assume the registered owner address shown is the lessee\u2019s.<\/span><\/p>\n\n\n\n<p><strong>To Change The Legal Owner (Lienholder ) Only<\/strong>\u2014The properly endorsed title or an <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/application-for-duplicate-or-transfer-of-title-reg-227-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Application for Replacement or Transfer of Title (REG 227) (PDF)<\/a> form and the appropriate fees are required. If a California-titled vehicle is two model years old or newer, a lien release on a <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/application-for-duplicate-or-transfer-of-title-reg-227-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">REG 227 (PDF)<\/a>, <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/lien-satisfied-title-holder-release-reg-166-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lien Satisfied\/Legal Owner\/Title Holder Release (REG 166) (PDF)<\/a> form, or any other type of lien release are no longer acceptable. The lienholder of record must apply for a replacement title prior to changing to a new lienholder.<\/p>\n\n\n\n<p><strong>Lessor-Retailer (VC \u00a7373) Sales<\/strong>\u2014A Report of Sale-Used Vehicle (REG 51) form is not required for the sale of a previously leased or rented vehicle if sold to one of the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The lessee of the vehicle, or the person who, for a period of at least one year, has been designated by the lessee as the driver of the vehicle covered by a written lease agreement.<\/li>\n\n\n\n<li>A transfer smog is not due, unless the biennial smog is due.<\/li>\n\n\n\n<li>If the lessor collects use tax when the lease is terminated, a <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/statement-of-facts-reg-256-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Statement of Facts (REG 256) (PDF)<\/a> form completed and signed by the lessor stating the payoff amount, amount of tax collected, and the Board of Equalization tax identification number is required.<\/li>\n\n\n\n<li>A buyer for agricultural, business, or commercial purposes.<\/li>\n\n\n\n<li>A government, governmental agency, or instrumentality.<\/li>\n<\/ul>\n\n\n\n<p>A REG 51 <strong>is <\/strong>required if the vehicle is sold by a dealer or sold to anyone other than those listed above.<\/p>\n\n\n\n<p><strong>Change of Lessee Only\u2014 In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The California Certificate of Title with the signature of the <strong>lessor<\/strong> on the appropriate lines of the front and back.<\/li>\n\n\n\n<li>The California Certificate of Title new owner section on the back of the title completed to show the names of both the lessor and new lessee.<\/li>\n\n\n\n<li>A <a href=\"https:\/\/www.dmv.ca.gov\/portal\/file\/statement-to-record-ownership-reg-101-pdf\/\" target=\"_blank\" rel=\"noreferrer noopener\">Statement to Record Ownership (REG 101) (PDF)<\/a> form, as explained above.<\/li>\n\n\n\n<li>A smog certification, because the person in possession of the vehicle has changed.<\/li>\n\n\n\n<li>A transfer fee, in addition to any other fees due. Use tax is <strong>not<\/strong> due.<\/li>\n\n\n\n<li>Odometer mileage disclosure, if appropriate. The same employee cannot sign for both the lessor, as seller, and the lessor, as buyer.<\/li>\n\n\n\n<li>A Report of Sale\u2013Used Vehicle (REG 51), if applicable.<\/li>\n\n\n\n<li>A transfer fee in addition to any other fees to change the lessee. Use tax is <strong>not<\/strong> due.<\/li>\n<\/ul>\n\n\n\n<p><span role=\"region\" class=\"format-label--note\"><span class=\"format-label__text\">Note<\/span> The lessee\u2019s signature alone will not be accepted for release of ownership. <strong>All <\/strong>leased vehicle transfers <strong>require <\/strong>the lessor\u2019s release on line 1 on the California Certificate of Title.<br><\/span><\/p>\n\n\n\n<p><strong>Change from Lessor to new buyer:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A smog certification, if applicable. A Smog Certification may not be required:\n<ul class=\"wp-block-list\">\n<li>When the vehicle is transferred between the lessor and the lessee, or<\/li>\n\n\n\n<li>The person who has been the lessee\u2019s operator for at least one year unless a biennial smog certification is due.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><span role=\"region\" class=\"format-label--note\"><span class=\"format-label__text\">Note<\/span> See Section 11.010 for additional information<\/span>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Report of Sale\u2013Used Vehicle (REG 51), if applicable.<\/li>\n\n\n\n<li>A transfer fee in addition to any other fees.<\/li>\n\n\n\n<li>If the lessee sold the vehicle to a third party, two transfer fees are due in addition to any other fees due.<\/li>\n<\/ul>\n\n\n\n<p>Use tax is due. If the lessee:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buys the vehicle at the end of the lease, use tax is based on the balance owed at the time of lease pay-off.<\/li>\n\n\n\n<li>Sells the vehicle within 10 days, use tax is due only from the third party.<\/li>\n\n\n\n<li>Sells the vehicle after 10 days, use tax will be due from the lessee and the third party.<\/li>\n<\/ul>\n","protected":false},"featured_media":0,"parent":13912,"menu_order":18,"template":"","dmv_task":[11],"dmv_functional_page_type":[64],"dmv_handbook_category":[910,595],"class_list":["post-13966","dmv_handbook","type-dmv_handbook","status-publish","hentry","dmv_task-educational","dmv_functional_page_type-informational","dmv_handbook_category-transfers","dmv_handbook_category-vehicle-industry-reg-procedures-manual"],"featured_image_src":null,"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>11.085 Leased Vehicles (VC \u00a74453.5) - California DMV<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dmv.ca.gov\/portal\/handbook\/vehicle-industry-registration-procedures-manual-2\/transfers\/leased-vehicles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"11.085 Leased Vehicles (VC \u00a74453.5) - California DMV\" \/>\n<meta property=\"og:description\" content=\"Leased vehicles must be registered in the names of both the lessor and the lessee. The lessor is designated as LSR; the lessee is designated as LSE. Certificates issued in 1985 or prior may show the lessee as \u201ccare of (c\/o)\u201d (the \u201cc\/o\u201d was part of the address field). 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