The importance of notifying the DMV after selling your vehicle

Notifying the Department of Motor Vehicles (DMV) after selling your vehicle is crucial for protecting yourself from potential liability and legal issues that may arise after the sale.

By filing a release of liability or notice of transfer, you officially transfer ownership and responsibility for the vehicle to the new owner, preventing you from being held accountable for any issues that occur after the sale.

• Protection from Liability:
  If you don’t notify the DMV, you remain the registered owner and could be held responsible for:
  • Parking tickets, fines, and tolls: These will be sent to you, and you’ll be responsible for paying them.
  • Accidents and damages: If the vehicle is involved in an accident or causes damage after you sell it, you could be liable for legal action.
  • Abandoned vehicle fees: If the vehicle is abandoned, you could be responsible for towing, storage, and other fees.
  • Crimes: If the vehicle is used in a crime, you could be called into court to explain the situation, even if you had nothing to do with it.
• Legal Requirements:

  Most states require you to notify the DMV within a specific timeframe (e.g., 5 days in California) after selling your vehicle. Failure to do so could result in fines.
• Transfer of Ownership:

  The DMV needs to update its records to reflect the new owner of the vehicle. This ensures accurate records for registration, title, and other purposes.
• Protecting the New Owner:

  Notifying the DMV also helps protect the new owner by ensuring that they can register the vehicle and obtain a new title in their name.
• Clear Record:

  A release of liability or notice of transfer creates a clear record of the sale, protecting both you and the new owner from potential disputes.