A bill of sale records who sold a vehicle to whom, for how much and when. In California the paperwork that protects the seller is not the bill of sale but a separate notice to the DMV, due in five days. The buyer, meanwhile, has ten days, a smog certificate to collect and use tax to pay on the price.
Everything below is quoted from the California Department of Motor Vehicles (DMV), its form REG 135 and the California Department of Tax and Fee Administration (CDTFA). You can also download a free California bill of sale template in PDF and Word.
The short answer
California has an official bill of sale, form REG 135, but the DMV says “any bill of sale that identifies the vehicle/vessel is acceptable”, and it does not need a notary. The seller must file a Notice of Transfer and Release of Liability (NRL) “within 5 calendar days” and give the buyer a valid smog certification. The DMV says “Any change in ownership or lienholder must be reported to DMV within 10 days”; in practice the buyer does this by submitting the signed title, and pays use tax at the rate for the address where the vehicle is registered.
When California needs a bill of sale
On its title transfer page the DMV lists the Bill of Sale (REG 135) among the forms that “may be required”. Its registration manual says what a bill of sale does in practice: it “must accurately establish the chain of ownership” and is:
| Rule | What it means for you |
|---|---|
| “Not required to be notarized or witnessed” | Seller and buyer sign; no notary. |
| “Acceptable in lieu of the registered owner’s release signature on the title” | If the seller’s release signature is missing from the title, a bill of sale can stand in for it (“B/S” is printed on the release line). |
| “Acceptable on multiple transfers in lieu of an in-between buyer’s signature” | When a car changed hands more than once without a new title, bills of sale bridge the gap, but the in-between buyer’s printed name must appear on the title. |
| Any form is fine | REG 135 is the DMV’s form; the bill of sale section on form REG 262 and your own bill of sale are also accepted if they identify the vehicle. |
REG 135 is signed under penalty of perjury: “I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.” If the vehicle is a gift, the form asks you to state the relationship (“e.g., parents, spouse, friend, etc.”).
California deadlines at a glance
| When | Who | What |
|---|---|---|
| At the sale | Seller | Sign the title and give the buyer a valid smog certification (unless the vehicle is exempt). |
| Within 5 calendar days | Seller | File the NRL: “You are required by law to notify DMV within 5 calendar days from the date you sell or transfer the title” (Vehicle Code section 5900). |
| Within 10 days | Buyer | “Any change in ownership or lienholder must be reported to DMV within 10 days, and the title must be updated.” |
| By the end of the following month | Buyer | Only if the use tax was not paid at the DMV: it is due to the CDTFA “on or before the last day of the month following the month of purchase”. |
What the seller has to do
- Sign the title (the California Certificate of Title). If it is lost, the DMV says to complete an Application for Replacement or Transfer of Title (REG 227) first.
- Hand over a smog certification. “If you are selling your car, you need to give the new owner a valid smog certification when you sell the car.” See the exemptions below.
- Disclose the mileage. Under federal rules (49 CFR 580.17), model year 2010 and older vehicles are exempt from odometer disclosure, and model year 2011 and newer vehicles are exempt once they are 20 model years old.
- File the NRL within 5 calendar days. Online or on paper with form REG 138, with the new owner’s name and address, the license plate number, the last five digits of the VIN and the odometer reading at the time of sale. Save the confirmation.
What the NRL does, and what it does not. Once the DMV records it, “any liability for parking violations, traffic violations, or civil litigation after the date of sale becomes the responsibility of the subsequent purchaser” (Vehicle Code section 5602). But it does not take your name off the vehicle record: “Only the buyer’s application for transfer, using the endorsed title received from you, can remove your name.” If you have forgotten who bought the car, the DMV lets you enter “unknown” for the buyer’s name and address, but warns that missing information “may disqualify your liability exemption”.
What the buyer has to do
Ten days to report the change of ownership. Submit the signed title to the DMV and pay the transfer fee, at a DMV office or by mail. Depending on the case, the DMV may also ask for:
- Vehicle/Vessel Transfer and Reassignment (REG 262).
- Bill of Sale (REG 135) or another bill of sale that identifies the vehicle.
- The smog certification from the seller, or the smog transfer fee if the car is under four years old.
- Use tax on the purchase price, collected at registration.
Smog certification: whose job it is and who is exempt
California puts the smog certification on the seller. The DMV’s rule for cars under four years old, plus its general list of vehicles that do not need a smog inspection:
| Vehicle | Smog inspection |
|---|---|
| Less than four years old | No inspection. “Instead, the new owner of the car will need to pay a smog transfer fee.” |
| Gasoline-powered, model year 1975 or older | Does not need a smog inspection (includes motorcycles and trailers). |
| Diesel, model year 1997 or older, or over 14,000 pounds gross vehicle weight | Does not need a smog inspection. |
| Natural gas over 14,000 pounds, or electric | Does not need a smog inspection. |
| Gift from a family member (spouse, domestic partner, sibling, child, parent, grandparent or grandchild) | No smog inspection, unless the family member “bought it for you” without first titling the car in their name. |
| Everything else | The seller gives the buyer a valid smog certification. |
Use tax on a private sale in California
A private seller does not collect sales tax, so the buyer owes use tax instead. The CDTFA says use tax applies “when an amount for sales tax is not paid to a California dealer”, which “includes purchases from out-of-state sellers, private parties”. You normally pay it when you register the vehicle at the DMV.
- The rate. “The use tax rate is the same as the sales tax rate and is based on the address where you register your vehicle.”
- The amount. Tax is on the full purchase price, including the value of anything traded. The CDTFA’s examples: a straight swap of cars worth $5,000 is taxed on $5,000, and so is a car paid for with $5,000 of painting work.
- Gifts. Not taxed, if given “freely, without any payment”. Keep “A signed statement from the former owner indicating the property was given to you as a gift” with the VIN or plate number, and a copy of the title. A vehicle from your employer as compensation is not a gift. If the DMV does not collect use tax because you state the vehicle was a gift or a family transaction, the CDTFA may contact you later “to provide supporting documentation”, so keep the paperwork.
- Family. Not taxed when bought from a qualifying family member “who is not engaged in the business of selling vehicles”: a parent, grandparent, child, grandchild, spouse or registered domestic partner, or a brother or sister “related to you by blood or adoption” if the sale occurs when both are minors. Stepparents and stepchildren generally do not qualify without a legal adoption, and neither do ex-spouses after a divorce decree. Keep documentation of the relationship, such as birth certificates, a marriage license or adoption papers, and a copy of the title.
- Overpaid or underpaid. If the DMV charged the wrong amount, contact the CDTFA; refunds go on form CDTFA-101-DMV.
What to put in a California bill of sale
Form REG 135 asks for the items below. A bill of sale you write yourself should cover them too, so the DMV can see the chain of ownership.
- Vehicle identification number (VIN), year, model and make; license plate number (and engine number for a motorcycle).
- Names of every seller and buyer, with mailing address; for the seller also driver’s license or ID number and daytime phone.
- Date of sale and the price, or the gift relationship.
- The odometer reading at the sale; the DMV asks for it on the NRL too.
- Signatures and dates, with the penalty-of-perjury statement.
Common mistakes
- Skipping the NRL. It is what moves liability for parking and traffic violations after the sale to the buyer.
- Thinking the NRL finishes the transfer. “Submitting an NRL to DMV does not qualify as a transfer of ownership.” The buyer still has to transfer the title.
- Asking the buyer to get the smog check. The DMV puts it on the seller.
- Writing a lower price. Use tax is due on the full price, and REG 135 is signed under penalty of perjury. If a lower price was reported to the DMV by mistake, the CDTFA says you can make an additional payment through its online services.
- Calling a sale a gift. If anything is given in exchange, including a service or taking over a loan, it is not a gift for use tax.
Free California bill of sale template
Fill it in online below, or download the 2026 California version in PDF or Word. It has the main REG 135 fields, the perjury statement, the odometer reading and a checklist of the DMV steps after the sale. Nothing is uploaded and there is no signup.
California bill of sale: common questions
Does California require a bill of sale to sell a car?
The DMV lists the bill of sale among the forms that “may be required” for a title transfer. When it is, “any bill of sale that identifies the vehicle/vessel is acceptable”, including form REG 135 or the bill of sale section of REG 262.
Does a California bill of sale need to be notarized?
No. The DMV says a bill of sale is “Not required to be notarized or witnessed.”
How many days do I have to transfer a title in California?
The buyer has 10 days to report the change of ownership. The seller has 5 calendar days to file the Notice of Transfer and Release of Liability.
Who pays for the smog check when selling a car in California?
The DMV puts it on the seller: “If you are selling your car, you need to give the new owner a valid smog certification when you sell the car.” For a car less than four years old there is no inspection, and the new owner pays a smog transfer fee instead.
Where do I get a California bill of sale form?
Form REG 135 is on the DMV website; the DMV notes it is “available on DMV website only and not from the supply warehouse”. You can also use the template on this page or any bill of sale that identifies the vehicle.
Do I pay tax on a car bought from a private seller in California?
Yes, use tax, at the sales tax rate for the address where you register the vehicle, usually paid to the DMV at registration. Gifts and purchases from qualifying family members are exempt.
Related
- Bill of sale rules for all 50 states + DC
- Vehicle bill of sale template
- Oregon bill of sale: the 10-day seller notice
- Washington bill of sale: the 5-day Report of Sale
How this page was checked
Every requirement and quotation comes from the California DMV and CDTFA: “Title Transfers and Changes”, “Notice of Transfer and Release of Liability”, Registration Procedures Manual 1.020, Bill of Sale, “Smog Inspections”, form REG 135 (Rev. 2/2007) and the CDTFA’s Tax Guide for Purchasers of Vehicles, all read in full. The odometer exemption follows the federal rule in 49 CFR 580.17.
Last verified: October 2026. We do not advance this date without re-checking the sources. Fees and forms are set by the DMV and the CDTFA and can change: confirm with the DMV before you go.
LegalTemplateVault is not a law firm and does not provide legal advice. Compiled and edited by Daniel Mercer, editor of LegalTemplateVault. He is not an attorney, and neither is anyone else on this site: we compile primary sources and cite them so you can check them yourself.