Transferring a car title to a family member in California is a common occurrence, whether it’s gifting a vehicle, passing it down to the next generation, or formalizing ownership within the family. The process involves some paperwork and a visit to the DMV, but with the right preparation, it can be a smooth and straightforward experience. In this guide, we’ll walk you through everything you need to know to successfully transfer a car title between family members in the Golden State.
Who Qualifies as a Family Member?
In California, certain close relatives are eligible for simplified title transfers with some nice perks like tax and smog check exemptions. Here’s who the DMV considers “family” for vehicle transfers:
Spouses and Domestic Partners
Married couples and registered domestic partners can transfer car ownership between each other without having to pay use tax or get a smog certification in most cases. This makes it easy to add or remove a spouse from the title.
Parents and Grandparents
Transfers from parents or grandparents to their children or grandchildren (and vice versa) also qualify for the tax and smog exemptions in many situations. This is great for families passing down vehicles to younger generations.
Children and Grandchildren
As mentioned above, title transfers from children to parents/grandparents or between siblings typically meet the requirements for skipping use tax and smog certification. It’s a convenient way to keep a vehicle in the family.
Siblings
While transfers between siblings don’t require a smog check if the vehicle is currently registered, there is one notable exception to the use tax exemption – it doesn’t apply if the siblings involved are not minors. So transfers between adult siblings may require paying use tax.
Required Documents
Before heading to the DMV to process your family title transfer, make sure you have all the necessary paperwork in order. Requirements may vary slightly based on your situation, but in general, be prepared with the following documents:
California Vehicle Title
The title, also known as the “pink slip”, is the most important document. It must be signed by both the current owner and the new owner to legally release interest in the vehicle. If the title is missing, you’ll need to complete an Application for Replacement or Transfer of Title (REG 227).
Odometer Disclosure
For vehicles less than 10 years old, you’re required to document the current mileage on the title or a separate Odometer Disclosure Statement. This helps ensure accurate recordkeeping and consumer protection.
ID Proof
The new owner needs to bring a valid form of identification, typically a driver’s license or ID card. This allows the DMV to verify identity for the new title.
Registration Card
If possible, provide the current vehicle registration card. This helps the DMV confirm current registration status and ownership.
Bill of Sale (Optional)
While not always required, it’s a good idea to draft a simple Bill of Sale documenting the transfer terms between family members. This provides a clear record of the agreement.
Smog Certificate (Optional)
Many family transfers are exempt from smog requirements if the vehicle is currently registered. However, if the registration is expired or it’s otherwise required in your case, you’ll need to provide a valid smog certificate.
REG Forms (Optional)
Depending on your specific situation, you may need to complete additional forms like a Statement of Facts (REG 256) to claim tax/fee exemptions or an Affidavit for Transfer Without Probate (REG 5) if the title is in the name of a deceased family member. The DMV can help determine which forms are needed.
Steps to Transfer Car Title Between Family
With your documents gathered, it’s time to complete the California title transfer process. Here’s a step-by-step overview:
Complete Vehicle Title Transfer Paperwork
Fill out the title transfer section on the back of the current title certificate. Include the new owner’s information, purchase price (if any), and odometer reading. Both the current owner and new owner need to sign and date the title. Complete any necessary REG forms for your situation.
Submit Completed Documents to Local CA DMV
Bring your completed title and additional documents to your local DMV office for processing. You can also mail them in, but in-person submission allows you to ask questions and confirm everything is in order. Pay the applicable $15 transfer fee and any other registration fees due.
DMV Processes Transfer to Update Records
The DMV agent will review your paperwork and, if everything meets requirements, will update the vehicle record to reflect the ownership change. They’ll typically issue the new owner an updated registration card on the spot, with the official new title arriving by mail within a few weeks.
Wrap Up Remaining Transfer Tasks
After leaving the DMV, tie up any loose ends like ensuring the vehicle is properly insured in the new owner’s name and that any necessary loan/financing changes have been made. The former owner should also file a Notice of Transfer and Release of Liability with the DMV within 5 days to avoid future liability for the vehicle.
Transferring from a Deceased Family Member
If you’ve inherited a vehicle from a deceased relative, the process is a bit more involved but still manageable with the right paperwork. Here are the key steps:
Obtain the California Certificate of Title
Locate the current vehicle title in the name of the deceased. If it’s missing, you’ll need to file for a duplicate using the REG 227 form.
Sign the Title
As the heir handling the transfer, you’ll need to sign the title on behalf of the deceased, then sign again as the new owner. Signatures should be in the form of “Your Name, heir” and “Name of Deceased, deceased”.
Complete Affidavit for Transfer without Probate (REG 5)
Fill out the REG 5 form to facilitate the transfer and attest that the estate’s value is under the limit to avoid probate. As of 2024, estates under $166,250 can use this simplified process.
Provide a Death Certificate
Include a copy of the official death certificate for the deceased vehicle owner. This helps legally document the transfer circumstances.
Complete Statement of Facts (REG 256)
The REG 256 form allows you to provide facts about the transfer and claim any relevant tax exemptions. Be thorough and honest in your responses.
Odometer Disclosure (for vehicles under 10 years old)
If the inherited vehicle is less than 10 years old, you’ll need to disclose the current mileage on the title or a separate odometer disclosure form.
Pay the Transfer Fee
Submit payment for the $15 title transfer fee and any other registration fees due. These can typically be paid by cash, check, or credit card at the DMV office.
Submit Documents to DMV
Bring your completed title, REG forms, death certificate, and payment to your local DMV for processing. They’ll review the paperwork and issue a new title in your name, usually within a few weeks.
Note that inherited vehicles can only be transferred 40 days after the owner’s death and are subject to some additional requirements if the estate’s value exceeds $166,250. Consult with a probate attorney or the DMV for guidance in more complex situations.
Mistakes to Avoid
To ensure a smooth and successful family title transfer, keep these common pitfalls in mind:
Failing Smog When Required
While many family transfers are exempt from smog certification, there are some exceptions like when the registration is expired or not current. Double check whether smog is required in your case and, if so, get the vehicle tested before attempting the transfer.
Late Registration Leading to Penalties
In California, you have 10 days from the transfer date to complete the title transfer and registration process. After that, late fees start accruing at a rate of $15 for 10 days, $30 for 20 days, and $60 for 30 days. Avoid these penalties by submitting your paperwork promptly.
Errors or Typos on Forms
Title transfers require accurate information and attention to detail. Carefully review all your documents for completeness and correctness before submitting them. Even minor errors can cause delays or rejections. It’s wise to get a second pair of eyes to double check everything.
By understanding the requirements, gathering the right documents, and following the DMV’s procedures, you can confidently transfer a vehicle title to a family member in California. While the process does take some time and effort, it’s a worthwhile step to legally document ownership changes and keep your family’s vehicles properly registered. Drive safely!
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