California Release of Liability (NRL): File Within 5 Days

The California release of liability is the seller's way of telling the DMV, "I no longer own this car, and here is the exact moment I stopped owning it." Its official name is the Notice of Transfer and Release of Liability (NRL), also known by its form number, REG 138. The seller has 5 days from the sale to submit it, and the fastest way is online at the DMV website.

Filing it doesn't transfer the title. The buyer still has to do that, within 10 days. What the NRL does is give the DMV a dated record that puts parking tickets, toll violations, impound bills and even crash liability on the new owner from that date on. In Orange County, where many trips go through cashless toll roads and parking enforcement, skipping it can come back to bite you weeks after the car is gone.

What the NRL actually protects you from

Until the DMV has a new owner on file, its records still show your name. If the buyer is slow to transfer the title, or never does, anything tied to that license plate can find its way to you. The NRL closes that gap. Common examples:

• Toll road notices. The 73, 133, 241 and 261 toll roads near Irvine are cashless. If the buyer drives them without a FasTrak account and doesn't pay online, the violation notice goes to the registered owner on file.
• Parking citations from cities, campuses and airports.
• Abandoned vehicle and towing charges if the buyer leaves the car somewhere and it ends up impounded.
• Civil liability after a crash. A filed release creates a record that you weren't the owner when it happened.

The NRL doesn't make these problems disappear on its own. It gives you a dated record to point to when you dispute a notice that arrives after the sale.

What you need before you file

Gather this information while the buyer is still in front of you. Trying to reach a buyer days later to ask for an address is how sellers end up filing late or filing incomplete.

How to file the release of liability

1. Go to the DMV website at https://www.dmv.ca.gov/portal/ and look for the Notice of Transfer and Release of Liability under vehicle online services.
2. Enter the plate number, the last digits of the VIN, and the buyer's information exactly as shown on their ID.
3. Enter the date of sale and odometer reading. Match what you wrote on the title.
4. Submit, then save or print the confirmation page. That confirmation is your proof.

If you'd rather not file online, you can use the paper REG 138 form or the tear-off release section that comes with some California titles. Online is faster and gives you an instant record, so it's the best choice for most sellers. If you mail it, keep a copy and note the date you sent it.

What the NRL is not

• It's not a title transfer. The buyer still submits the signed title, pays use tax and fees, and gets registration in their own name.
• It's not a bill of sale. It's a good idea to sign a California bill of sale (REG 135) as well, especially if the title doesn't have room for the sale price.
• It doesn't cancel insurance or a toll account. Those are separate calls you make yourself.

A seller's after-sale checklist

The NRL is the most important step, but a few small tasks finish the job:

• Remove your FasTrak transponder from the windshield and update your FasTrak account so the plate is no longer linked to you. A transponder left in the car will keep charging your account.
• Call your insurer to take the car off your policy after the sale date, not before. You want coverage until the keys leave your hands.
• Keep the plates with the car. In California, license plates normally stay with the vehicle when it's sold. Personalized plates are an exception; check the DMV's rules if you have them.
• Cancel any connected-car or app subscriptions and delete your phone from the car's Bluetooth and navigation memory.
• Keep your paperwork (title photo, bill of sale, NRL confirmation) for at least a few years.

When the buyer is a dealer or the sale is to family

Dealers that buy your car usually handle the transfer paperwork themselves, but the release of liability is still your protection, so it's worth filing anyway or getting written confirmation that it was filed. If you're gifting a car to a family member, the NRL still applies. Family transfers change the smog and use tax rules, not the seller's duty to report the change of ownership.

If the car still has a loan on it, the sale has more steps because the lender is the legal owner on the title. Our guide on buying a car with a lien in California covers how payoff and title release usually work.

What buyers should know about the NRL

If you're on the buying side, the seller's release of liability doesn't register the car for you. You still have 10 days to report the transfer, and late penalties can apply. The California DMV guide for used car buyers walks through the whole sequence, and the Orange County used car sales tax guide explains what you'll pay at the DMV based on your home address.

When you buy from Irvine Used Cars, you receive the signed title, a smog certificate and a bill of sale, and you handle registration and pay tax and fees at the DMV. That makes it easy to see each step of the transfer. If you're shopping now, you can browse our current inventory.

Frequently asked questions

What happens if I sell my car and forget to file the release of liability?

The DMV will keep showing you as the owner until the buyer transfers the title. Tickets, toll notices or tow charges can be mailed to you in the meantime. File the NRL as soon as you notice, keep your bill of sale as proof of the sale date, and dispute any notice dated after the sale.

Can I file the California release of liability after 5 days?

The law asks you to file within 5 days, but filing late is still much better than never filing. The late record still shows the date of sale you enter. Back it up with a signed bill of sale that shows the same date.

Does the buyer need to be present to file the NRL?

No. You can file it online on your own. You just need the buyer's name and address, the plate number, part of the VIN, the date of sale and the odometer reading, so collect those before the buyer drives away.

Is there a fee to file the release of liability?

Filing the NRL with the DMV is generally free. Confirm current details on dmv.ca.gov. The buyer pays the transfer fee, use tax and any other fees when they register the car.

Do I file a release of liability if I donate or junk my car?

Yes. Any change of ownership should be reported, including to a charity or dismantler. Ask the organization for a receipt with the date, and file the NRL with their name and address as the new owner.

Next steps

Collect the buyer's details at the handoff, file online the same day, and save the confirmation. If you have questions about the paperwork that comes with one of our cars, call or text (516) 835-6141.