California Title Transfer: Step-by-Step Guide for Buyers & Sellers
Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
The state legally requires a California title transfer when there's a change in vehicle ownership, whether you are buying, selling, or inheriting a vehicle. To make this process as easy as possible, learn the necessary steps, the required documents, and the common mistakes to avoid.
The California Title Transfer Process
Whenever you sell or donate a car, truck, motorcycle, or boat, you must properly transfer it to the new owner. The title transfer divests you of vehicle ownership and places it in the hands of the buyer.
New owners need a clear title to register the vehicle in their name. Without the title, they can't prove they're the owner, and the California Department of Motor Vehicles (DMV) won't allow registration. If you're the seller, you want to remove yourself as an owner so you're no longer legally liable for the vehicle.
Key Documents Needed for a California DMV Title Transfer
A California application for title is fairly straightforward. To start, sellers sign the front of the existing title in the designated spaces. The new owner completes the back of the title before registering the vehicle at the DMV.
It's good practice for all parties to share proof of identity before the title transfer process begins. That way, you can verify each person is who they say they are and confirm their contact details.
Title Transfers in Private Sales, Gifts, and Inherited Vehicles
The process for transferring a title is the same for private sales, California car donations, and inherited vehicles. The title holder fills out the applicable areas on the front of the title, and the buyer completes the back. The state requires new owners to complete a title transfer within 10 days of a change in vehicle ownership.
If the vehicle's legal owner lost the title, they can still do a transfer using the DMV's Application for Replacement or Transfer of Title form. The form includes a section for a California notary to validate both parties' identities and act as a witness to the transaction.
Out-of-State Vehicle Title Transfers to California
Did you buy a vehicle from outside California? If so, ask the seller to sign over the out-of-state title to you. This is required to title and register the car in California. You may also want to complete a Bill of Sale form outlining the purchase terms and tax paid.
California requires owners to take their vehicle for a smog inspection before registration unless it qualifies for an exception. You can disregard the smog inspection if your car is:
- A 1975 model or older
- Electric
- Gasoline-powered and fewer than eight model years old
Certain natural-gas-powered vehicles and heavy-duty trucks may not require a smog inspection, either.
Fees, Taxes, and Smog Checks Required for Title Transfers
California sellers must take a car for a smog inspection before selling it if it is older than four years old. They can't legally transfer the title until they have a valid smog certification. If the vehicle is less than four years old, the new owner simply pays a smog transfer fee. The seller doesn't need to get it inspected.
Buyers may owe use tax on vehicle purchases. The use tax rate depends on the vehicle's purchase price and your address. You'll pay it at the time of the California car registration.
If you purchased the vehicle outside California and paid a sales tax, you may credit it toward any use tax owed at registration time. For instance, if you paid $1,000 in Oregon sales tax and owe $1,200 in California use tax, you'd pay the difference of $200. Hold on to your receipt so you don't have any problems claiming the credit!
Handling Title Transfers With a Lienholder
Occasionally, a vehicle's original title may include a lienholder. The lienholder has a financial interest in the car. If you're the seller of a vehicle with a lien, get the lienholder's written approval before transferring it to the buyer.
The lienholder must sign the California title on its front. If another lienholder assumes the remaining balance on the loan, they may complete the back of the title along with the new buyer.
What To Do If You Lose Your California Title
A vehicle certificate of title is a document you don't want to lose. However, if you've misplaced your title, you can request a duplicate title using the Application for Replacement or Transfer of Title form.
Fill out the first three sections and take the form to a nearby California DMV. There may be a small fee for the service.
Common Mistakes To Avoid During a Title Transfer
An error in the title transfer process may cost you time and money. Blunders to look out for include:
- Forgetting to sign the title
- Listing an incorrect vehicle identification number (VIN)
- Noting the wrong mileage
- Ignoring smog check responsibilities
To avoid issues, prepare for the title transfer ahead of time. Understand your responsibilities as a buyer or seller, and carefully review all documents before finalizing the transactions.
Need To Update Your Car Insurance After a Title Transfer?
A title transfer often means other changes, too — such as car insurance updates. While your vehicle is on your mind, take a few minutes to compare California car insurance rates through EverQuote. Our free service can help you find an affordable policy so you can start saving today!