The California Department of Motor Vehicles (DMV) classifies a transfer of a vehicle as a "family transfer" when you transfer the registration or ownership of the vehicle to a child, partner, grandchild, grandparent, parent, sibling or spouse. In the state of California, a family transfer of a vehicle differs from a regular transfer in that it is exempt from smog certification (given that the biennial inspection is not outstanding); use tax (except in the case of transfer between siblings); and the vehicle reclassification fee.
Sign or endorse the Certificate of Title on Line 1. Have the buyer fill out and sign the back of the form. In case the title has been lost, you must use the Application for Duplicate Title instead.
Fill out the disclosure of odometer reading section in the Certificate of Title. Filling out this section is not mandatory if the vehicle is more than 10 years old, although you are still encouraged to do so.
Fill out the Statement of Facts form. This form is required to exempt you from the smog certification and use tax.
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Notify the DMV within five days of the transfer. To do this, fill out the Notice of Transfer and Release of Liability form. You can use California DMV's online NRL filing service (dmv.ca.gov/online/nrl/welcome.htm) or download the form (REG 138) and send it to:
Department of Motor Vehicles P.O. Box 942859 Sacramento, CA 94259
It is a good idea to keep a copy of these forms for future reference.
Hand over the aforementioned documents to the buyer. Once you do this, your part of the deal is complete. It is then the responsibility of the buyer to submit these documents along with the transfer fee ($15) to the California DMV. The DMV will issue the new owner a registration card and a new title within 60 days of submission.