11.085 Leased Vehicles (VC §4453.5)

Leased vehicles must be registered in the names of both the lessor and the lessee.

The lessor is designated as LSR; the lessee is designated as LSE. Certificates issued in 1985 or prior may show the lessee as “care of (c/o)” (the “c/o” was part of the address field).

If the input document does not have a designated space for the lessee address, the lessor must provide the lessee’s address on a Statement to Record Ownership (REG 101) (PDF) form whenever it differs from the registered owner address shown on the application documents. If a REG 101 (PDF) is completed, it must be the top document.

Note An application on a report of deposit of fees (RDF) solely because the lessee address space on the title or REG 101 (PDF) is blank must not be returned. Assume the registered owner address shown is the lessee’s.

To Change The Legal Owner (Lienholder ) Only—The properly endorsed title or an Application for Replacement or Transfer of Title (REG 227) (PDF) form and the appropriate fees are required. If a California-titled vehicle is two model years old or newer, a lien release on a REG 227 (PDF), Lien Satisfied/Legal Owner/Title Holder Release (REG 166) (PDF) form, or any other type of lien release are no longer acceptable. The lienholder of record must apply for a replacement title prior to changing to a new lienholder.

Lessor-Retailer (VC §373) Sales—A Report of Sale-Used Vehicle (REG 51) form is not required for the sale of a previously leased or rented vehicle if sold to one of the following:

• The lessee of the vehicle, or the person who, for a period of at least one year, has been designated by the lessee as the driver of the vehicle covered by a written lease agreement.
• A transfer smog is not due, unless the biennial smog is due.
• If the lessor collects use tax when the lease is terminated, a Statement of Facts (REG 256) (PDF) form completed and signed by the lessor stating the payoff amount, amount of tax collected, and the Board of Equalization tax identification number is required.
• A buyer for agricultural, business, or commercial purposes.
• A government, governmental agency, or instrumentality.

A REG 51 is required if the vehicle is sold by a dealer or sold to anyone other than those listed above.

Change of Lessee Only— In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

• The California Certificate of Title with the signature of the lessor on the appropriate lines of the front and back.
• The California Certificate of Title new owner section on the back of the title completed to show the names of both the lessor and new lessee.
• A Statement to Record Ownership (REG 101) (PDF) form, as explained above.
• A smog certification, because the person in possession of the vehicle has changed.
• A transfer fee, in addition to any other fees due. Use tax is not due.
• Odometer mileage disclosure, if appropriate. The same employee cannot sign for both the lessor, as seller, and the lessor, as buyer.
• A Report of Sale–Used Vehicle (REG 51), if applicable.
• A transfer fee in addition to any other fees to change the lessee. Use tax is not due.

Note The lessee’s signature alone will not be accepted for release of ownership. All leased vehicle transfers require the lessor’s release on line 1 on the California Certificate of Title.

Change from Lessor to new buyer:

• A smog certification, if applicable. A Smog Certification may not be required:
  • When the vehicle is transferred between the lessor and the lessee, or
  • The person who has been the lessee’s operator for at least one year unless a biennial smog certification is due.

Note See Section 11.010 for additional information.

• A Report of Sale–Used Vehicle (REG 51), if applicable.
• A transfer fee in addition to any other fees.
• If the lessee sold the vehicle to a third party, two transfer fees are due in addition to any other fees due.

Use tax is due. If the lessee:

• Buys the vehicle at the end of the lease, use tax is based on the balance owed at the time of lease pay-off.
• Sells the vehicle within 10 days, use tax is due only from the third party.
• Sells the vehicle after 10 days, use tax will be due from the lessee and the third party.

11.080 California Native American-Owned Vehicles

California Native American Tribes and/or Tribal Members (U.S. Code, Title 28, §1360(b)) Vehicles owned or leased by the California Native American tribe and/or tribal member living on a federal Native American reservation or rancheria located in California and operated on public roads on or off the reservation or rancheria are exempt from the VLF portion only of California registration fees. The exemption must be established annually upon renewal.

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

A California Native American Certification on the Miscellaneous Certifications (REG 256A) (PDF) form completed and signed by a representative of the tribe or an official of the U.S. Bureau of Indian Affairs. A new REG 256A form is required annually upon renewal.

Federally-Recognized Native American Tribes (VC §9104.5 and CR&TC §10781.1) Vehicles registered to a federally-recognized Native American tribal name and used exclusively within the boundaries and jurisdiction of the tribe are exempt from all fees, other than the registration fee (without the miscellaneous city/county fees). The fee exemption must be established annually upon renewal.

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

• A letter written on Native American tribal letterhead and signed by an authorized tribal counsil member, such as the tribal chief or secretary, which identifies the vehicle and states it is owned by and being registered in the federally-recognized Native American tribal name and will be used exclusively within the boundaries of Native American tribal land, including any incidental operation on highways within those boundaries.
• The registration fee, if registration renewal is required at the time of transfer. The application is exempt from all other fees.

Transfer from California Native American-Owned to Someone Else—In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

VLF from the month of transfer or date of first operation by the buyer, the transfer fee, and any other fees due.

11.075 Foreclosure or State Controller Sales (VC §5909)

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

• A Verification of Vehicle (REG 31) (PDF) form if there is no prior California vehicle record.
• A Certification of Foreclosure or a Certificate of Sale from the Controller which:
  • Describes the vehicle by make and VIN.
  • Includes a statement that the requirements of the contract and of law (notification, posting, and advertising) have been met.
• Do not require the registered owner’s release on the title. In lieu of the registered owner’s signature, write “Clearing VC §5909”.

Note If the foreclosure was made by other than the legal owner (lienholder), the Certificate of Title must contain the lienholder’s release or a Lien Satisfied/Titleholder Release (REG 166) (PDF) form must be submitted.

11.070 Exempt Vehicles (VC §5600)

To transfer an exempt agency vehicle, the following must be submitted:

• The Certificate of Title properly endorsed for transfer.
• A Verification of Vehicle (REG 31) (PDF) form, if the number of axles does not show on the title of a commercial vehicle.
• A weight certificate, if the weight code is missing on the title of a commercial vehicle.
• A Statement of Facts (REG 256) (PDF) form stating the motive power, if the title does not show the motive power.
• An Exempt License Plate Request (REG 5050) form if the vehicle is being transferred to another exempt agency.
• A permit to transfer issued by the Department of General Services, the Department of Transportation, or the California State University and Colleges, as appropriate for state-owned vehicles.

Note Accept the release by Department of Transportation for vehicles registered to the Department of Public Works, Division of Highways or Equipment.

• The exempt license plates, unless the vehicle is being transferred to another exempt agency.
• Fees as follows:
  • Exempt Agency: Waive fees and penalties due prior to purchase by the exempt agency. Collect fees for replacements and use tax, if due.
  • Exempt to Fee Paid: Collect full-year fees and use tax, if due. A Certificate of Non-Operation (REG 102) (PDF) form is not required if fees are paid within 20 days of purchase.
• The odometer mileage disclosure on a complying title or on the Vehicle/Vessel Transfer and Reassignment Form (REG 262), as appropriate.
• A smog certification, if appropriate.
• Assign a vehicle license fee (VLF) class based on the applicant’s purchase price.
• Assign a registration expiration date 12 months from date fees became due, if not transferring to another exempt agency.
• Issue license plates and stickers, as required.

Transfer Only (VC §4452)—In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

• Statement of Facts (REG 256) (PDF) form for transfer only.
• Planned Non-Operation (REG 102) (PDF) form.

Note A smog certification is not required.

Transfer from Exempt to Exempt—Follow the Basic Transfer Requirements listed in this section to process a transfer from one exempt agency to another. A new REG 5050 is required from the purchasing exempt agency.

Civil Air Patrol Vehicles—Refer to Chapter 14.

Transfer of California Registered Vehicle to an Exempt Agency:

• In addition to the basic transfer requirements, a transfer to an exempt agency requires a completed and signed Exempt License Plate Request (REG 5050) form.
• Any license plates on the vehicle must also be surrendered since exempt plates will be issued.

Transfer of Exempt Vehicle to a Non-Exempt Buyer:

In addition to the basic transfer requirements:

• State-owned vehicles require a permit to transfer issued by the Department of General Services or the Department of Transportation or the California State Universities and Colleges, as appropriate.
• Full-year registration fees must be submitted in addition to the transfer fee and any other fees due.
• Exempt plates must be surrendered because regular series plates will be issued.

11.065 Estate Valued at $150,000 or Less (California Probate Code [CPC] §§7660 and 13100)

In addition to the Basic Transfer Requirements listed in this chapter:

If the Personal Property of a Decedent Is	And the Total Estate	Then
If the Personal Property of a Decedent IsBeing liquidated under the provisions of the CPC	And the Total EstateDoes not exceed $50,000	ThenA Statement of Facts (REG 256) form, completed and signed by the public administrator authorized to sell or dispose of the property must be submitted.
If the Personal Property of a Decedent Is	And the Total EstateExceeds $50,000 but does not exceed $150,000	ThenA court order, authorizing a public administrator to sell personal property belonging to a decedent must be submitted.
If the Personal Property of a Decedent IsNot being liquidated under the provisions of the CPC	And the Total EstateDoes not exceed $150,000	ThenAn Affidavit For Transfer Without Probate California Titled Vehicle or Vessels Only (REG 5) form, completed and signed by the heir, provided 40 days have elapsed since the registered owner’s date of death must be submitted. Note The REG 5 cannot be submitted for vehicles not titled in California.

• The title document may be endorsed for release by the public administrator as the administrator of the deceased owner’s estate.
• A copy of the court order authorizing the distribution of property must accompany the transfer application. The court order does not have to identify the vehicle.

11.060 Errors/Erasures on the Certificate of Title

A Statement of Error or Erasure (REG 101) form is required for any erasure and/or lined out information on the California Certificate of Title. For example, if an individual’s signature appears on the title in error and is lined out, a REG 101 must be completed by that individual explaining the error.

A REG 101 is not required if the name of the current registered owner or new purchaser is printed or signed on the dealer endorsement line.

Dealers and financial institutions may certify to errors in signatures, including their own, made on the California Certificate of Title by a representative of the dealer or financial institution. For errors made by other than a dealer or financial institution, the REG 101 must be completed and signed by the individual whose signature appears on the title in error.

Exception: When a printed name or address is lined out, the individual who made the entry in error may complete the REG 101.

11.055 Replacement Titles

A properly endorsed Application for Replacement or Transfer of Title (REG 227) (PDF) form may be accepted for any transfer of a California-registered vehicle when the California Certificate of Title is lost, stolen, missing, or illegible/mutilated. However, the California Certificate of Title is the only document that can be used to release the lien of a vehicle two model years old or newer.

11.050 Disabled Veteran (DV) License Plates

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, when a vehicle with DV License Plates is transferred, the following must be submitted:

• The DV License Plates from the vehicle.
• Full-year registration fees, transfer fee, and any other fees due. Refer to the information below if the vehicle is a trailer coach.
• Assign a 12-month registration year from the date of sale by the disabled veteran.
• Issue new license plates and stickers.

Trailer Coaches—Disabled veterans pay a reduced vehicle license fee (VLF) for trailer coaches. If ownership is transferred to someone not eligible for the DV License Plate fee exemption, the balance of the annual VLF prorated from the month of transfer to the end of the registration year is due in addition to any other fees.

Note Prorated VLF may be due or refundable when a nonqualified joint owner affecting the percentage of ownership is added or deleted.

11.045 Dealer Out of Business Registration Process

Dealer Out of Business (DOB) and/or Customer Claims Against Dealer’s Bond.

A DMV investigator/inspector picks up any pending applications when a dealer goes out of business. If the investigator/inspector has all or part of the registration documents, they will forward the documents and all pertinent data to DMV.

Note In some cases, a person who knows the dealer where they purchased a vehicle is out of business will contact a field office. In such cases, advise the customer of the requirements. It is not necessary to contact Investigations.

Paperwork Not Available—The applicant must:

• For a new vehicle, complete an Application for Title or Registration (REG 343) (PDF) form.
• For a used vehicle, submit the usual transfer requirements.
• For a nonresident vehicle, submit the usual nonresident vehicle registration requirements.
• Attach a copy of the sales contract and the Investigations letter, if received, to the application.

Note A copy of the sales contract, a replacement Manufacturer’s Certificate of Origin, or a motor vehicle bond may be accepted for new vehicles. A motor vehicle bond may be required for used or nonresident vehicles, if proper ownership documents cannot be obtained. Refer to the Motor Vehicle Ownership Surety Bond.

11.040 Dealers or Lessor-Retailers

California dealers and lessor-retailers have 30 days from the date of sale to submit on the Report of Sale–Used Vehicle (REG 51) form the transfer application and fees for used vehicle without penalties (VC §9553(c)(1)) and/or administrative service
fee (ASF). This includes nonresident vehicles and vehicles on which the registration expired while in dealer inventory.

Note This does not apply to vehicles with penalties due or accrued prior to the date of sale to the dealer or lessor-retailer (VC§9553(c)(2)). Penalties continue to accrue unless the fees and penalties due are posted by the dealer.

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

• The dealer’s endorsement on the California Certificate of Title. Each dealer’s name and a countersignature or initials must be entered for dealer reassignments on the title. When there is insufficient room for all dealer transfers in the dealer reassignment section, a Vehicle/Vessel Transfer and Reassignment Form (REG 262) is required. The dealer’s name and number should be included on the REG 262.
• The dealer’s Report of Sale–Used Vehicle (REG 51) form. A REG 51 is not required to register a vehicle taken in trade by the dealership but is required if the dealer registers the vehicle to their leasing division rather than to the dealership.

Sale of Used Vehicle to be Altered—A dealer selling a used vehicle that will be altered before the transfer application is processed may be relieved of responsibility by processing the transfer as a “Customer Demands Title.” If the vehicle will be registered within 30 days of the sale date, the customer copy of the REG 51 may be displayed in the vehicle. However, the dealer then assumes responsibility for completion of the application.