California Vehicle Bill of Sale

Introduction

Key Things to Know

1. 1

   California has an official form, the Bill of Sale (REG 135), available on the DMV website only and not from the supply warehouse. Using it is optional, because any bill of sale that identifies the vehicle or vessel is acceptable to the DMV.

2. 2

   A California bill of sale is not required to be notarized or witnessed. It must, however, accurately establish the chain of ownership from seller to buyer.

3. 3

   Odometer disclosure follows the federal 49 CFR 580 rule. For a transfer on or after January 1, 2021 of a vehicle less than 20 model years old, disclosure is required, made on a complying title or on the REG 262, with original signatures by the seller and buyer (signatures by power of attorney are not accepted).

4. 4

   Use tax is computed on the stated purchase price, ranging from 7.25% to 10.25% depending on the buyer's city and county. Each application subject to use tax must show the purchase price on the back of the Certificate of Title or include a bill of sale.

5. 5

   You title and register at the California DMV. The transfer fee is due within 30 days of the transfer to avoid penalty, and the seller must file the Notice of Transfer and Release of Liability within 5 days.

6. 6

   A bill of sale is optional and supplementary. The Certificate of Title signed by the buyer and seller, plus the transfer fee, is what transfers ownership; a bill of sale is used as needed to establish chain of ownership and to show the purchase price for use tax.

7. 7

   If the stated purchase price looks low or there is a discrepancy, the buyer must complete a Statement of Facts (REG 256) explaining it, or the DMV will base use tax on the higher amount.

California Requirements for Bill of Sale

• Form REG 135 (Optional Official Form)

  California publishes the Bill of Sale (REG 135), available on the DMV website only and not from the supply warehouse. Using it is optional, because any bill of sale that identifies the vehicle or vessel is acceptable to the DMV. The multipurpose REG 262 doubles as a bill of sale and an odometer disclosure.

• No Notarization Required

  A California bill of sale is not required to be notarized or witnessed. It must accurately establish the chain of ownership from seller to buyer. Identify the seller and buyer by name and address so the chain of ownership is clear.

• Vehicle Description and VIN

  Identify the vehicle or vessel so the bill of sale is acceptable to the DMV. Include the VIN or hull ID, year, make, model, body type, and color. Any bill of sale that identifies the vehicle or vessel is accepted.

• Odometer Disclosure

  For a transfer on or after January 1, 2021 of a vehicle less than 20 model years old, federal 49 CFR 580 requires odometer disclosure, made on a complying title or on the REG 262, with original signatures by the seller and buyer. Signatures by power of attorney are not acceptable for the odometer disclosure.

• Stated Purchase Price Drives Use Tax

  Use tax is computed on the stated purchase price, ranging from 7.25% to 10.25% by the buyer's city and county. Each application subject to use tax must show the purchase price on the back of the Certificate of Title or include a bill of sale, so the stated price on this document is the price proof for the DMV.

• Statement of Facts (REG 256) for Discrepancies

  If there is a purchase price discrepancy in the application, the buyer must complete a Statement of Facts (REG 256) explaining it, or the DMV will base use tax on the higher amount. Keep the stated price on the bill of sale consistent with what is shown on the title.

• Title and Register at the California DMV

  Title and register the vehicle at the California DMV. The Certificate of Title signed by the buyer and seller, plus the transfer fee, is what transfers ownership; the transfer fee is due within 30 days of the transfer to avoid penalty.

• Seller's Notice of Transfer and Release of Liability

  The seller must file the Notice of Transfer and Release of Liability with the DMV within 5 days of the sale. This is separate from the buyer's title and registration and protects the seller from liability after the sale.