Article 2. Endorsement And Delivery Of Documents of California Vehicle Code >> Division 3. >> Chapter 2. >> Article 2.
Upon transfer of the title or any interest of the legal owner
or owners in a vehicle registered under this code, the transferor
shall write his signature, and the transferee shall write his
signature and address, in the appropriate spaces provided on the
certificate of ownership issued for the vehicle.
Upon transfer of the title or interest of the registered
owner only in a vehicle registered under this code, the registered
owner shall write his signature and address and the transferee shall
write his signature and address in the appropriate spaces provided on
the certificate of ownership for the vehicle, and the legal owner
shall write his signature in the space provided for the new legal
owner indicating that he is to retain his legal title and interest.
(a) Upon transfer of the title or interest of the
registered owner of a motor vehicle that is subject to Part 5
(commencing with Section 43000) of Division 26 of the Health and
Safety Code, if no certificate of compliance or certificate of
noncompliance is submitted to the department pursuant to the
exemptions described in paragraph (1) of subdivision (d) of Section
4000.1, the transferor of that vehicle shall sign and deliver to the
transferee, upon completion of the transaction, the original copy of
a statement, under penalty of perjury, that he or she has not
modified the emissions system of the vehicle and does not have any
personal knowledge of anyone else modifying the system in a manner
that causes the emission system to fail to qualify for the issuance
of a certificate of compliance pursuant to Section 44015 of the
Health and Safety Code. The transferor shall keep a duplicate copy of
the statement delivered to the transferee pursuant to this section.
The department shall prescribe and make available to transferors the
necessary forms to comply with this subdivision.
(b) Any form prescribed by the department pursuant to subdivision
(a) shall contain the following statement and a space for the
signatures of the transferor and transferee at the end of the
"WARNING TO THE BUYER
"A valid certificate of compliance was submitted to the Department
of Motor Vehicles with an application for the renewal of
registration of this vehicle. If an application for transfer is
submitted to the department within the 90-day validity period of the
smog certification, no new smog certification will be required.
However, at present, you may be purchasing a vehicle that may not be
in compliance with specified emission standards.
"By signing this statement, you acknowledge that the seller is not
required to provide you with an additional certificate of compliance
prior to the completion of this transaction.
"You may have this vehicle tested at a licensed smog check station
prior to completion of this transaction to verify compliance. If the
vehicle passes the test, you shall be responsible for the costs of
the test. If the vehicle fails the test, the seller is obligated to
reimburse you the cost of having the vehicle tested and, without
expense to you, must have the vehicle repaired to comply with
specified emission standards prior to completion of this transaction.
(a) When the required certificate of ownership is lost,
stolen, damaged, or mutilated, the application for transfer may be
made upon a form provided by the department for a duplicate
certificate of ownership. The transferor shall write his or her
signature and address in the appropriate spaces provided upon the
application and file the same together with the proper fees for
duplicate certificate of ownership and transfer. The application
shall also include, if applicable, the notorized signature of the
(b) An insurance company or its agent is exempt from the notarized
signature requirement of subdivision (a) and may apply, upon a form
provided by the department, for a duplicate certificate of ownership
and transfer of ownership to the insurance company, if all of the
(1) The insurance company or its agent obtains from the lienholder
a document to verify satisfaction of the lien.
(2) The insurance company has paid a total loss claim for the
(3) A lienholder is indicated on the department's records.
(4) The certificate of ownership is lost, stolen, damaged, or
(a) It is unlawful for any person to fail or neglect properly
to endorse, date, and deliver the certificate of ownership and, when
having possession, to deliver the registration card to a transferee
who is lawfully entitled to a transfer of registration.
(b) Except when the certificate of ownership is demanded in
writing by a purchaser, a vehicle dealer licensed under this code
shall satisfy the delivery requirement of this section by submitting
appropriate documents and fees to the department for transfer of
registration in accordance with Sections 5906 and 4456 of this code
and rules and regulations promulgated thereunder.
(c) (1) Within 15 business days after receiving payment in full
for the satisfaction of a security interest and a written instrument
signed by the grantor of the security interest designating the
transferee and authorizing release of the legal owner's interest, the
legal owner shall release its security interest and mail, transmit,
or deliver the vehicle's certificate of ownership to the transferee
who, due to satisfaction of the security interest, is lawfully
entitled to the transfer of legal ownership.
(2) If a lease provides a lessee with the option to purchase the
leased vehicle, within 15 business days after receiving payment in
full for the purchase, and all documents necessary to effect the
transfer, the lessor shall mail, transmit, or deliver the vehicle's
certificate of ownership to the transferee, who, due to purchase of
the vehicle, is lawfully entitled to the transfer of legal ownership.
(d) The certificate of ownership delivered pursuant to subdivision
(c) shall be signed by the legal owner or lessor to reflect release
of the legal owner's interest or transfer of the lessor's interest in
the vehicle or accompanied by a form provided by the department to
accomplish the same result and signed by the legal owner or lessor.
If the legal owner or lessor is not in possession or control of the
certificate of ownership, the legal owner or lessor shall, within the
time provided in subdivision (c) for the mailing, transmittal, or
delivery of the certificate of ownership, take any action required by
the department to release the legal owner's security interest or
transfer the lessor's interest in the vehicle and within that time
shall mail, transmit, or deliver written notice of its taking that
action to the transferee.
(e) A legal owner or lessor that fails to satisfy the requirements
of subdivisions (c) and (d), shall, without offset or reduction, pay
the transferee twenty-five dollars ($25) per day for each day that
the requirements of subdivisions (c) and (d) remain unsatisfied, not
to exceed a maximum payment of two thousand five hundred dollars
($2,500). If the legal owner or lessor fails to pay this amount
within 60 days following written demand by the transferee, the amount
shall be trebled, not to exceed a maximum payment of seven thousand
five hundred dollars ($7,500), and the transferee shall be entitled
to costs and reasonable attorneys fees incurred in any court action
brought to collect the payment. The right to recover these payments
is cumulative with and is not in substitution or derogation of any
remedy otherwise available at law or equity.
(f) A legal owner, upon written request of the transferee, shall
disclose any pertinent information regarding the amount of payment
and the documents necessary to release the obligation secured by the
legal owner's interest.