Is There a Difference Between Release of Liability and Notice of Transfer?
When you sell your car in a private-party sale, you may be required by your state to submit a release of liability form to the DMV (or equivalent agency). Depending on your state, you may also need to submit a notice of transfer form.
Some states require one, some require the other, some require both forms, and some require neither.
Let’s look deeper into the differences and similarities between these two forms and their purposes.
Let’s look deeper into the differences and similarities between these two forms and their purposes.
What is a release of liability?
A release of liability serves to free a vehicle seller from future liabilities related to the actions of the buyer, who will be the new owner. Some states require a vehicle seller to submit a release of liability, while others don’t.
Regardless of whether your state requires it or not, it’s a good idea to complete a release of liability form with your DMV anyway, to protect yourself against criminal actions, negligence, or other unforeseen events.
Regardless of whether your state requires it or not, it’s a good idea to complete a release of liability form with your DMV anyway, to protect yourself against criminal actions, negligence, or other unforeseen events.
What is a notice of transfer?
A notice of transfer notifies the state government that the vehicle has a new owner.This form includes details such as:
Unlike a release of liability, which protects the seller from future liabilities, a notice of transfer's primary purpose is to update the state's records to reflect the current ownership of the vehicle.
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Make and model of the car
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Date of sale
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Names and addresses of both the seller and buyer
Unlike a release of liability, which protects the seller from future liabilities, a notice of transfer's primary purpose is to update the state's records to reflect the current ownership of the vehicle.
Which states require a release of liability?
Many states now require sellers to file a release of liability when selling a car privately. These include the following:
1. Arizona
2. California
3. Colorado
4. Texas
5. Washington
6. Florida
7. Oregon
State laws change, and many states don’t explicitly state whether a release of liability is required. To be on the safe side, check with your local DMV.
1. Arizona
2. California
3. Colorado
4. Texas
5. Washington
6. Florida
7. Oregon
State laws change, and many states don’t explicitly state whether a release of liability is required. To be on the safe side, check with your local DMV.
Which states require a notice of transfer?
Hawaii requires residents to file a notice of transfer after they sell a vehicle. The notice of transfer also serves as a release of liability, even though Hawaii explicitly calls it “Notice of Transfer.”
What Should I Do Before Filing a Release of Liability?
Before filing a release of liability, you should first ensure that your registration is up-to-date if your state requires annual vehicle inspections. You can find a detailed list of inspection procedures and the states that conduct them here. Before the vehicle sale, you should also:
Note that the buyer will need to register the car under their name and address, and may be required to pay sales taxes on the sale of the vehicle, depending on the state.
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Check with your DMV to see if you need liability insurance at the time of sale. In many states, selling a car without an auto insurance policy may result in you having to pay hefty penalties for lapsed insurance.
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Draw up the bill of sale. You can find free printable templates for this here; just select your state from the list and you’ll be directed to the file. Or, sell your car on PrivateAuto. We make the bill of sale easy with official forms for your state. You and the buyer sign the bill of sale from your PrivateAuto mobile app.
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You may need to fill out a separate Odometer Disclosure form stating the odometer reading at the time of sale. Like all official forms, you'll need to write down the vehicle identification number (VIN) to identify your car.
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You may also need to fill out a separator Damage Disclosure form, according to your state’s regulations. New York State requires private sellers to complete both an Odometer and Damage Disclosure form before vehicle transfer. Failure to provide this document can result in fines and/or imprisonment, according to the NY DMV website.
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Sign the vehicle title over to its new owner.
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Unless you live in California or Minnesota, you’ll remove the vehicle license plates; the buyer is responsible for getting new plates.
Note that the buyer will need to register the car under their name and address, and may be required to pay sales taxes on the sale of the vehicle, depending on the state.
How to Fill Out a DMV Release of Liability
Fill out your DMV release of liability promptly and correctly to avoid delays and legal issues as you safely and securely sell a used vehicle from a private party. The information you need to fill out this form can vary by state.
For example, the California release of liability form requires the following information:
Always check state-specific requirements before filling out this form.
For example, the California release of liability form requires the following information:
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New owner’s name
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New owner’s address
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License plate number
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Vehicle odometer reading at the time of the sale
Always check state-specific requirements before filling out this form.
What Happens If You Don’t File a DMV Release of Liability?
Depending on your state, failure to file a release of liability may land you into one or more of the following types of trouble:
In many states, a release of liability form is also used to update local tax databases. Failure to submit this form to the county tax collector could cause you to be taxed for personal property that you no longer own.
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Delinquent notice fines: in many states, private sellers are required by law to submit a release of liability within a certain number of days after the car is sold. Typically, sellers have 30 days to file with their state DMV before they face fines or other repercussions.
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Unjustly charged for violations: legality aside, failure to submit a release of liability document on time can result in the seller being held accountable for traffic violations, parking tickets, and unpaid toll fees accumulated by the new owner. When you file a release of liability, the DMV updates their records with the new owner’s info and releases you from responsibility if an incident arises. California’s DMV website states that, when filled out correctly, “liability for parking and/or traffic violations and civil litigation, resulting from operation after the date of sale, becomes the responsibility of the subsequent purchaser.”
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Tax and registration renewal notices for the car: when the NRL information is received by DMV, and the vehicle record is marked, no further vehicle registration renewal notices will be mailed to you for the reported vehicle.
In many states, a release of liability form is also used to update local tax databases. Failure to submit this form to the county tax collector could cause you to be taxed for personal property that you no longer own.
Additional Requirements When Buying or Selling a Car
Whether you’re the buyer or seller, here are some details that need to be handled for the entire transaction to complete smoothly:
Most states require the buyer to pay title transfer fees, registration fees, and other fees, as well as sales taxes.
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Proof of identification for buyer and seller
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Signatures for buyer and seller
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Valid emissions test or vehicle present to perform a test at the time of transfer, if required by your state
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Signed and dated bill of sale, if required in your state
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Signed application for transfer of ownership
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Proof of valid insurance in the name of the new owner
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Payment transfer through a secure process
Most states require the buyer to pay title transfer fees, registration fees, and other fees, as well as sales taxes.
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Paperwork FAQ
What information is required to complete an NRL?
Release of liability form requirements differ from state to state. Generally, you’ll be required to input the following information:
- Your name AND the new owner’s name. Both should be entered according to what their driver's licenses state (i.e., "William" instead of "Will").
- Contact information for the previous owner AND new owner. This would include an address and phone number, at minimum.
- License plate number currently assigned to the vehicle. In most states, you'll want to remove and keep the license plates.
- Vehicle description. In addition to make, model, and year, the form may ask for body style and color.
- Vehicle Identification Number (VIN). This can typically be found on the dashboard through the windshield, in the inner door jamb, and elsewhere on the vehicle.
- Exact mileage at the time of sale. Remember, you may also need to fill out a separate form confirming the odometer reading. It is illegal in every state to lie about a car's mileage.
- Date of title transfer, which is the date you both sign the vehicle title and other forms and the new owner leaves with the vehicle.
If you have any questions regarding the sale or your responsibilities, you should get in touch with your local DMV far in advance. Here's a tip: If you can't get a hold of your own county's DMV, you can contact a smaller county's DMV in your state. Since DMVs are managed at the state level, they all must follow the same rules and regulations so they'll all be able to answer your questions.
- Your name AND the new owner’s name. Both should be entered according to what their driver's licenses state (i.e., "William" instead of "Will").
- Contact information for the previous owner AND new owner. This would include an address and phone number, at minimum.
- License plate number currently assigned to the vehicle. In most states, you'll want to remove and keep the license plates.
- Vehicle description. In addition to make, model, and year, the form may ask for body style and color.
- Vehicle Identification Number (VIN). This can typically be found on the dashboard through the windshield, in the inner door jamb, and elsewhere on the vehicle.
- Exact mileage at the time of sale. Remember, you may also need to fill out a separate form confirming the odometer reading. It is illegal in every state to lie about a car's mileage.
- Date of title transfer, which is the date you both sign the vehicle title and other forms and the new owner leaves with the vehicle.
If you have any questions regarding the sale or your responsibilities, you should get in touch with your local DMV far in advance. Here's a tip: If you can't get a hold of your own county's DMV, you can contact a smaller county's DMV in your state. Since DMVs are managed at the state level, they all must follow the same rules and regulations so they'll all be able to answer your questions.