When your dealership buys a car from a private seller, most of the paperwork that makes the purchase work has to come from the seller. If a signature is missing or a lien hasn’t been released, the deal stalls at the handover, with the car and the seller in front of you.

No DMV consumer page covers a licensed dealer buying from a private party. The DMV’s procedures for this kind of transfer are in its Vehicle Industry Registration Procedures Manual, which the DMV designed for dealers and others in the vehicle industry (DMV manual §11.015). So this article sets out what California’s rules ask of the seller, and what that means for your intake. It also covers, from the DMV’s manual, the dealer-side steps that follow. It isn’t legal advice. Confirm current requirements in your DMV dealer resources. We checked the official pages linked here in October 2026.

The title: who signs, and where

Start with the California Certificate of Title, sometimes called the pink slip.

  • The seller’s signature. In a private sale, the seller signs the title on Line 1 (DMV private-party page).
  • Co-owners. If the owners’ names are joined by “and” or “/”, both must sign. If they’re joined by “or”, one can (DMV dealer-purchase page).
  • A seller who isn’t on the title. If the person selling isn’t the owner named on the title, the DMV says a bill of sale signed by both of them is needed (DMV private-party page). The DMV’s manual accepts any bill of sale that identifies the vehicle, and it doesn’t need to be notarized (DMV manual §1.020).
  • A missing title. If the title is lost, stolen or damaged, the DMV says an Application for Replacement or Transfer of Title (REG 227) comes first. If the vehicle has a lienholder, section 5 of the REG 227 must be notarized (DMV title page).
  • Mistakes. The DMV’s form for correcting mistakes on a title is the Statement to Record Ownership (REG 101) (DMV title page).

The title you take in is also the one you’ll use when you resell the car. The DMV’s manual has the dealer endorse the title’s dealer reassignment section, using a REG 262 when that section runs out of room. It gives dealers 30 days from the date of that sale to submit the transfer application and fees on a Report of Sale (REG 51) without penalties (DMV manual §11.040). A complete title at intake keeps that step simple.

If there’s a loan on the car

When money is still owed on the car, the title lists the lienholder (DMV titles page). Here’s what the DMV says about releasing that interest:

  • The lienholder releases it on Line 2 of the title, or with a Lien Satisfied/Legal Owner/Title Holder Release (REG 166) (DMV manual §11.015).
  • For a vehicle two model years old or newer, only the Certificate of Title can release the lien (REG 166).
  • A REG 166 must be notarized, and it can’t be used for a vehicle with a paperless title (REG 166).
  • Where a lender holds an electronic title, the DMV lists release of the paper title to a dealer among the options (DMV electronic lien and title page).
  • If the seller’s lender has closed or changed hands, the DMV’s Financial Institution Locator lists lenders that have gone out of business, merged, changed their name or been acquired.

The DMV pages we checked don’t describe how to get a payoff amount, how long a lender takes to release a lien, or how a sale closes with a loan outstanding. The lender is the party to ask, so get the seller’s lender details well before the visit.

Odometer disclosure

For model year 2011 and newer, an odometer disclosure is required until the vehicle is 20 model years old (DMV memo VIN 2021-10). Older vehicles follow the earlier 10-year rule (49 CFR 580.17). The DMV’s manual adds three points that matter at your desk:

  • In dealer sales, the registered owner discloses the mileage on the front of the title, and each buying dealer completes the “Dealer Transactions Only” section on the back (DMV manual §5.070).
  • The disclosure needs original signatures from the seller and the buyer. Signatures by power of attorney aren’t accepted (DMV manual §5.025).
  • The manual describes a workaround when the seller’s disclosure is missing on a private-party sale, but says it doesn’t apply to dealer transactions (DMV manual §5.025). Get the seller’s disclosure at the handover.

If the title has no line for the mileage, the DMV says to complete a Vehicle/Vessel Transfer and Reassignment form (REG 262), signed by both the buyer and the seller. It’s printed on security paper, so it isn’t available online (DMV private-party page).

Smog: what’s published, and what isn’t

The DMV’s manual lists “a smog certification, if appropriate, or evidence of exemption” among the basic requirements for a transfer (DMV manual §11.015).

For newer cars, BAR says a gasoline vehicle four model years old or newer doesn’t need a smog certificate at transfer (BAR: Smog Check), and the DMV says the new owner pays a smog transfer fee instead (DMV smog page). Confirm with the DMV for your vehicle. Some vehicles are exempt depending on fuel type, weight and age, so check the DMV smog page for the car in front of you.

What the official sources we checked don’t say is whether a private seller must provide a smog certificate when the buyer is a licensed dealer. Confirm the smog step in your DMV dealer resources before the visit, and tell the seller what to bring.

Release of liability: the seller’s step

The seller must notify the DMV within 5 calendar days of the sale with a Notice of Transfer and Release of Liability (DMV NRL page). The DMV describes this as the seller’s duty. It can be filed online, and the DMV says the record is updated within 1 business day of an online filing.

To file, the seller needs the new owner’s name and address, the plate number and the last five digits of the VIN, and the odometer reading at the time of sale (DMV NRL page). As a courtesy, you might give the seller your dealership’s name and address in writing at the handover, which may help them file it. An NRL isn’t a transfer of ownership, so it doesn’t replace a complete title.

Match the VIN to the paperwork

The title and the registration card both contain the VIN, which is stamped into the frame or on a plate attached to the body (DMV manual §1.115). On cars and light trucks it must also be readable through the windshield from outside, next to the driver’s side windshield pillar (49 CFR 565.13). The VIN on the car and the VIN on the title should match, character for character.

The free VIN decoder shows the year, make, model and trim the manufacturer reported for a VIN, so you can confirm the car is the one that was described. It doesn’t show title status or ownership, which is why the paperwork still matters. Our guide to VIN barcodes on the lot covers capturing the VIN without retyping it, and our checklist of what to check before you commit to a private-party car covers the rest of the visit.

An intake checklist

  • The title, or a REG 227 if it was lost, stolen or damaged.
  • The seller’s signature on Line 1, and every owner’s signature when the names are joined by “and” or “/”.
  • A bill of sale signed by both the seller and the titled owner, if someone else is selling.
  • Any lien released on Line 2 or with a notarized REG 166. For a car two model years old or newer, the release must be on the title.
  • The odometer disclosure where it’s required, with the seller’s original signature.
  • A smog certification or evidence of exemption where it applies, confirmed in your DMV dealer resources.
  • The VIN matched on the car, the title and the registration card.
  • A reminder to the seller to file the NRL within 5 calendar days.

With CarLinks, the visit is arranged after a price is agreed, and your team inspects the car and decides whether to buy. If a CarLinks agent is arranging the visit, tell them which documents the seller should bring. From private seller to dealership explains each step.

To see how the visit and the paperwork fit into your process, see how it would work for your dealership, or read how CarLinks works.