I get calls every week from folks across LA County — Long Beach, Compton, Pasadena, Burbank, Glendale — who sold a car months ago and are now getting toll violations or tickets in the mail. So what went wrong? They never filed a REG 138. Or they filed it wrong. And now the DMV still shows them as the registered owner while someone else is racking up problems in their name.
This guide walks you through what REG 138 is, how to fill it out, and the critical mistakes that can leave you liable. I’m Sonny Miller with GoCarBuyer.com, and I’ve handled thousands of California DMV transactions. So call (714) 900-3723 if you have questions after reading. For the bigger picture on selling a car in California, also check my California car title guide.
What Is REG 138?
REG 138 is the California DMV’s Notice of Transfer and Release of Liability form (also called the NRL). Basically, it’s how you officially tell the DMV that you sold, gifted, donated, or transferred a vehicle. And once filed, it releases you from liability for anything that happens with the car after the sale date.
Now, without filing REG 138, the DMV still considers you the registered owner. So tickets, tolls, parking citations, red light camera fines, and even civil liability for accidents can come back to you. This is why filing it IMMEDIATELY after the sale matters — not next week, not next month. Instead, the same day.
When You Must File REG 138
First of all, California law requires you to file within 5 days of selling, gifting, donating, trading in, or transferring your vehicle to a junkyard or cash-for-cars buyer. Also file if the vehicle was repossessed or sold to your insurance company after a total loss or theft payout. Basically, anytime ownership officially changes to a known party, this form needs to be filed.
How to File REG 138
You have three options, but one is far better than the others.
File online (strongly recommended). First, go to the California DMV Release of Liability portal. It takes 5 minutes and clears within 24 hours. Also, you’ll need your license plate, last 5 digits of the VIN, sale date, selling price (or “GIFT”), odometer, and the buyer’s full name and address. Finally, save the confirmation number — that’s your proof.
File by mail. Alternatively, download the REG 138 PDF, complete in ink, and mail to: Department of Motor Vehicles, PO Box 942859, Sacramento, CA 94259-0001. However, mail processing takes 2–3 weeks, so you’re still on the hook during that window.
File in person. Or bring a completed REG 138 to any DMV or to AAA if you’re a member. Usually faster than mail but slower than online. Also, most DMVs require an appointment.
How to Fill Out REG 138 — Line by Line
Before you start, know that there are two versions of this form with different layouts:
- Tear-off strip at the top of your pink slip — uses lettered Boxes A through J. This is what most sellers use.
- Standalone REG 138 PDF from the DMV website — uses numbered Sections 1 through 5.
The information is the same, just labeled differently.
Tear-Off Strip on Your Title (Boxes A–J)
- Box A: Last name of the buyer (or company name if selling to a business)
- Box B: First name and middle initial of the buyer
- Box C: Full physical address where the new owner lives — city, state, ZIP
- Box D: Signature line for the buyer (optional for NRL purposes)
- Box E: Actual selling price in dollars (or write “GIFT”)
- Box F: Odometer reading on the day of sale
- Box G: Date of sale
- Box H: Seller’s last name as shown on the title
- Box I: First name and middle initial of the seller
- Box J: Critical signature line — this is yours, under penalty of perjury
Then tear the strip off the top of the title. After that, keep it or file online using the info you just recorded.
Standalone REG 138 PDF (Sections 1–5)
- Section 1 — Vehicle Info: License plate, last 5 digits of VIN, year, make, body model
- Section 2 — Transfer Info: Date of sale, selling price (or “GIFT”), odometer reading
- Section 3 — New Owner Info: Buyer’s full legal name and full mailing address (required — the DMV will reject without this)
- Section 4 — Seller Info: Your name, CA driver’s license number, current address
- Section 5 — Signature: Your signature and date, under penalty of perjury
Critical Warning — Filing REG 138 Is Not Enough
Now here’s what most people don’t understand. Filing REG 138 tells the DMV “I sold this car” — but it does NOT actually transfer the title out of your name. Instead, the title only transfers when the buyer goes to the DMV and completes THEIR paperwork.
So what happens if the buyer never transfers it? Well, you’re still the registered owner on paper. The REG 138 protects you from civil liability going forward, but you can still get DMV notices, renewal fees, and tolls that slip through the cracks.
Sonny’s Strong Recommendation — Go With the Buyer
So if you’re doing a private party sale, the safest move is to go with the buyer to AAA, the DMV, or a registration service at the time of sale. Then complete everything together. After that, walk out with a printout of the new registration in the buyer’s name. That printout is instant proof the title is no longer in your name. Because if you trust the buyer to “handle it later,” a lot of them never do.
Honestly, this is why sellers prefer dealing with a professional buyer. When you sell to me, I file the REG 138 and handle the title transfer on the spot. So no waiting, no guessing.
Common Mistakes That Void Your Filing
- Missing buyer info — No buyer name or address means the DMV won’t process it. Get their driver’s license before the sale.
- Wrong VIN or plate — One wrong digit and the filing fails. Double-check against the title.
- Filing too late — The 5-day window matters. Every day past it is a day you’re still legally on the hook.
- Illegible handwriting — If the DMV can’t read it, they can’t process it. File online instead.
- No proof of filing — Save your online confirmation or send paper forms with tracking.
What If You Never Filed REG 138?
Say you sold a car 6 months ago and just realized you never filed. First, don’t panic — you can still file it now using the original sale date. Then the release becomes effective once processed and protects you going forward.
However, any tickets or incidents that happened BEFORE you filed may still be your legal responsibility. So you may need to contest those individually with your bill of sale or other evidence. Ultimately, this is a mess you don’t want to be in — so file immediately when you sell.
Frequently Asked Questions
Is REG 138 the same as a Release of Liability?
Yes. Basically, REG 138 is the form number, and “Release of Liability” (or NRL) is the name of what the form accomplishes. So they’re used interchangeably.
How long does REG 138 take to process?
Online filings clear within 24 hours. But mail filings take 2–3 weeks. Meanwhile, in-person filings at DMV or AAA are usually processed same day. So always file online if possible.
Does filing REG 138 cost anything?
No. Actually, filing is free — online, by mail, or in person. Therefore, anyone charging you to file this is running a scam.
What if I don’t have the buyer’s address?
Unfortunately, you’re stuck. Because the DMV requires it to process REG 138. So if the buyer already drove off without providing their info, track them down through text messages, bill of sale records, or anyone who knows them. Otherwise, the filing will be rejected.
What if I sold to a dealer or junkyard?
Generally, most dealers and licensed junkyards file REG 138 for you as part of their process. But always ask for confirmation. And if they don’t file it, you should — because you’re the one liable if something goes wrong.
My car was stolen. Do I file REG 138?
No. Because the DMV system requires a buyer’s name and address — which you don’t have for a thief. Instead, file a police report immediately. Then the police flag the VIN in the national database, which automatically updates the DMV and protects you from liability. However, if your insurance company pays you out for the stolen car, you DO file a REG 138 at that point — listing your insurance company as the buyer.
Skip the Paperwork — We Handle It All
Honestly, if all this sounds like too much, here’s the easy route. Sell your car to me. Then I bring the paperwork, file REG 138 on the spot, and handle the title transfer. So you sign, I pay, the car is legally off your plate before I drive it away. Best of all, no worrying about toll notices in 6 months.
I cover all of Southern California — LA, Orange County, San Fernando Valley, Inland Empire, Ventura, and San Diego. Also, if you’re dealing with a lost title or a REG 227 situation, I handle those too. Call (714) 900-3723 and we’ll make it simple.
Sonny Miller — (714) 900-3723
GoCarBuyer.com
Cypress Office: 10601 Walker St Suite 102, Cypress, CA 90630
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