Why Filing a Release of Liability is Critical After Selling a Vehicle
When you sell your car, your legal responsibility for that vehicle doesn’t end the moment the buyer drives away. If you don’t file a Release of Liability with your state’s Department of Motor Vehicles (DMV), any future parking tickets, toll violations, accidents, or crimes involving that vehicle could come back to you.
🔥 Real Risk: “I sold my car, but it’s still in my name”
This is one of the most common legal nightmares sellers face. A buyer might delay registration, drive recklessly, or accumulate tickets — and guess who the DMV thinks owns the car? You.
✅ The Solution: File a DMV Release of Liability Immediately
The Vehicle Transfer and Release of Liability form protects you legally by notifying your state’s DMV that you sold the vehicle, and that you are no longer responsible for it.
🛠️ Step-by-Step Guide: How to Submit a DMV Release of Liability
While the exact process varies by state, here’s a general step-by-step guide that applies to most U.S. DMVs:
Step 1: Gather Necessary Information
Before you start, you’ll need:
- Vehicle license plate number
- Vehicle Identification Number (VIN)
- Buyer’s full name and address
- Date of sale
- Sale price (optional, depending on state)
Step 2: Complete the Release of Liability Form
There are two ways to file:
💻 Option 1: File Online (Most Efficient)
- Go to your state’s DMV website.
For example, in California: https://www.dmv.ca.gov - Look for: “Report of Sale / Notice of Transfer and Release of Liability”
- Complete the online form
- You will receive a confirmation or reference number — save this for your records
📝 Option 2: File by Mail
- Download the Release of Liability form (e.g., REG 138 in California)
- Fill it out completely
- Mail it to your local DMV address listed on the form
Step 3: Notify the Buyer (Optional, but Recommended)
While it’s not required, informing the buyer that you’ve filed the release helps maintain transparency. It also encourages them to register the car quickly, which helps finalize the ownership transfer.
Step 4: Keep a Copy for Your Records
Keep a copy of:
- The Release of Liability submission or confirmation
- The Bill of Sale
- Any correspondence with the buyer
This documentation will protect you in case of any future disputes or legal notices.
🚫 What Happens If You Don’t File a Release of Liability?
If you skip this step, here’s what could happen:
- Traffic Tickets in Your Name: Any violations after the sale can be mailed to you.
- Vehicle-Related Crimes: You may get pulled into investigations or legal battles.
- Toll Violations: Toll agencies will charge you unless the new owner updates the records.
- Lawsuits: In worst-case scenarios, you could face lawsuits or debt collections.
🔐 Protect Yourself with These Bonus Tips
✅ 1. Always Use a Bill of Sale
Create a simple Bill of Sale that includes:
- Date of sale
- Vehicle details
- Buyer and seller signatures
- Sale amount
✅ 2. Remove License Plates (if your state requires it)
Some states require the seller to remove the license plate at the time of sale.
✅ 3. Cancel Insurance Promptly
Once you’ve filed the release and confirmed ownership transfer, call your insurance company and cancel the policy.
🚗 What Buyers Should Do After a Vehicle Purchase
If you’re the buyer, you should:
- Register the vehicle in your name ASAP
- Pay any taxes or fees due
- Get insurance coverage before driving
If you’re wondering “how to submit a release of liability to the DMV after selling a car”, this step-by-step guide walks you through everything you need to know to legally and safely protect yourself after a car sale. Avoid tickets, tolls, and legal issues — file your DMV release of liability today.
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