You sold your car, received payment and watched the buyer drive away.
You’re finished, right?
Not quite.
One of the most important things a California seller should do after a vehicle sale is notify the DMV that the vehicle has been sold.
That’s where the Notice of Transfer and Release of Liability comes in.
What Is a Notice of Transfer and Release of Liability?
The Notice of Transfer and Release of Liability—often called an NRL—is the notice used to tell California DMV that you sold, transferred or otherwise disposed of a vehicle.
According to California DMV, sellers must submit the NRL within five calendar days of the sale or transfer.
Why Is the Release of Liability So Important?
Imagine selling your vehicle and the buyer doesn’t immediately complete the title transfer.
Later, the vehicle receives parking tickets or becomes involved in another issue.
You don’t want the first record of the sale to be your explanation months later.
DMV states that after it receives the NRL information, liability for certain parking violations, traffic violations or civil litigation occurring after the reported date of sale becomes the responsibility of the subsequent purchaser.
That’s why this small step can be extremely important.
What Information Do You Need?
Before the buyer leaves, make sure you have the information necessary to complete your NRL.
DMV requires information that includes:
- Vehicle license plate number
- Vehicle identification number (VIN)
- Vehicle make and model year
- New owner’s name and address
- Odometer reading
- Date of sale
- Seller information
Incomplete information can create problems with updating the DMV vehicle record.
Keep Proof That You Submitted It
If you submit the NRL electronically, DMV provides a confirmation.
Keep that confirmation with your records along with copies of your sale documents.
Good recordkeeping can be extremely valuable if a question about the vehicle comes up later.
Does the Release of Liability Transfer the Title?
No.
This is an important distinction.
Submitting the NRL notifies DMV about the sale, but DMV specifically states that the NRL itself does not constitute a transfer of ownership.
The buyer must still complete the applicable transfer requirements.
Already Sold Your Car and Need Help With the DMV Paperwork?
Don’t leave an unfinished vehicle transaction hanging over your head.
If you’ve sold a vehicle or you’re preparing to sell one and need help understanding the DMV paperwork, visit Get Tags and Smog.
We’re located at 6784 El Cajon Blvd, Suite H, San Diego, CA 92115.
Call (619) 777-9452 and let our team help you with your DMV service needs.
