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Key Facts
- California state level: California DMV Form REG 135 records the vehicle or vessel, seller, buyer, transfer date, selling price or gift value, and the seller’s signed declaration.
- California state level: A vehicle bill of sale generally does not need notarization or a witness for California DMV purposes.
- California state level: A bill of sale can document a transaction, but it does not replace every title-transfer, notice, tax, odometer, or emissions requirement.
In California, the significance of a bill of sale depends on what was sold and why the document is being used. This guide focuses on California DMV treatment of bills of sale for vehicles and vessels.
What a California bill of sale records
California DMV’s REG 135 form identifies a vehicle or vessel by identification number, year, make, license or vessel number, and, for a motorcycle, engine number. It also provides spaces for the seller and buyer, the transfer date, the selling price, and gift information. The seller signs a declaration under penalty of perjury, while the buyer information section does not include a buyer-signature line.
The DMV manual also accepts another bill of sale if it identifies the vehicle or vessel. For related terminology, see the guide to a purchase agreement.
When REG 135 matters in a vehicle or vessel transfer
The California Certificate of Title is the official ownership document for a registered vehicle. In a routine private sale, both sides generally use the properly endorsed title to transfer ownership, and REG 135 can separately preserve the price and date. DMV guidance says a bill of sale is acceptable in place of the registered owner’s release signature on the title in specified circumstances, and it can help establish a chain of ownership through intermediate transfers.
That flexibility does not turn a bill of sale into a complete transfer package. California requires a seller who transfers a registered vehicle and delivers possession to notify DMV within five calendar days. DMV identifies that filing as the Notice of Transfer and Release of Liability. The buyer must report the ownership change and update the title, generally within 10 days.
Other records may also be necessary. Depending on the transaction, DMV may require the endorsed title or a replacement-title application, an odometer disclosure, a smog certification, lienholder documentation, or vessel-specific ownership papers. Readers comparing narrower vehicle forms can also review the planned guides to a bill of sale for a car and an auto bill of sale.
Notarization, witnesses, and copies
California DMV’s registration manual states that a vehicle or vessel bill of sale does not need to be notarized or witnessed. REG 135 includes a detachable copy section.
Price, gifts, and California use tax
The price written on a bill of sale can affect more than the parties’ records. California generally imposes use tax on a vehicle bought from a private party for use in the state, and the buyer ordinarily pays it when registering the vehicle with DMV. The taxable purchase price can include cash, assumed debt, exchanged property, or services rather than only money handed to the seller.
A genuine gift is treated differently, but calling a transfer a gift does not control if the recipient gave cash, property, services, or assumed a liability in return. CDTFA also recognizes specified family transactions and other exclusions or exemptions, each with its own conditions and documentation. REG 135 asks for both the relationship and gift value when the transfer is reported as a gift.
What a bill of sale does not prove by itself
California vehicle ownership records separately identify the registered owner, lienholder information, title brands, and odometer information. DMV transfer guidance also lists title documents and disclosures that may be required in addition to REG 135.
Sources
- California DMV, Bill of Sale (REG 135)
- California DMV Registration Manual, Bill of Sale
- California DMV, Title Transfers and Changes
- California Vehicle Code section 5900
- California DMV, Vehicle Titles
- California Department of Tax and Fee Administration, Tax Guide for Purchasers of Vehicles
- California Vehicle Code section 5902
- California Revenue and Taxation Code section 6201
