How To Transfer A Car Title To A Family Member In California

Understanding Car Title Transfers to Family Members in California

There are three major differences between a regular title transfer and a family transfer:

• Family transfers are tax-exempt unless they’re between adult siblings.
• Family transfers don’t require a new smog certification if the car has a current one.
• Family transfers don’t require the Department of Motor Vehicles (DMV) to reassess the car’s value.

Understanding how to transfer a car title to a family member in California can save you both time and money.

Who Qualifies as a Family Member for Title Transfer in California?

You’ll want to first see if the recipient qualifies as a family member for the purposes of the transfer. A family transfer happens when you transfer a car to one of the following:

• Spouse
• Child
• Parent
• Sibling
• Grandparent
• Grandchild

Transfers between more distant relatives, like cousins, don’t qualify as “family transfers” under the law.

Documents Required for a Family Car Title Transfer

Before completing your transfer, gather the following:

• Signed-over title
• Statement of Facts (REG 256) form
• Smog certification, if applicable
• Odometer disclosure statement, if needed

Both the person transferring the car and the person receiving it should also bring IDs.

Within five days of transferring the car, you also must submit a Notice of Transfer and Release of Liability (NRL). This is a document that releases you from liability for traffic violations after you sell or transfer the car. California requires you to complete and submit an NRL for every vehicle sale or transfer you make.

Here’s an example of why having an NRL is so important: Imagine you transfer a car to your grandchild, who promptly gets several traffic camera tickets. Traffic camera tickets generally are sent to the owner of the vehicle, so you could be held liable if you haven’t submitted an NRL.

The NRL records the date of the transfer and the vehicle mileage at the time of the transfer, ensuring law enforcement can pinpoint the exact time you stopped being responsible for tickets.

How to Complete the Title Transfer Process Step by Step

Here’s how to transfer a car title to a family member in California:

• Gather required documents
• Fill out the title transfer information on the back of the title
• Fill out REG 256
• Pay any required fees

It usually takes a few weeks for the DMV to generate and mail a new title.

Fees and Exemptions for Family Title Transfers in California

Ordinarily, when you transfer a vehicle in California, you have to pay something called “use tax.” Use tax is based on sales tax rates and the value of the vehicle. Depending on where you are in the state, the use tax could be greater than 10% of the value of the vehicle.

Most family transfers are exempt from use tax as long as you complete and file REG 256. However, you will probably have to pay a small title transfer fee. You can find out what you owe with the California DMV’s online fee calculator.

Smog Certification Requirements for Family Transfers

Most cars won’t need a new smog check to be transferred, but check with the DMV to make sure.

Common Mistakes to Avoid When Transferring a Car Title

In most cases, the process of transferring a car title to a family member is relatively straightforward. However, to avoid unnecessary delays and complications, you should be mindful of these common errors:

• Forgetting to sign the car title or any required forms
• Not submitting REG 256
• Misspelling names or making other errors when signing the title
• Submitting a title with a vehicle identification number (VIN) that doesn’t match the car
• Signing documents with an ink color other than blue or black

Keep in mind that if two owners are listed on the title of a vehicle, both owners must sign for that vehicle to be transferred to a new owner. Many people mistakenly believe that one owner’s signature is enough to authorize a transfer.

The good news is that if you make a mistake, you should be able to correct it relatively easily. It might just cause a delay in the processing of your transfer.

Need Legal Help?

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