Release of Liability

Your Guide to Proper Release of Liability on Old Cars

It is important that for any sale or transfer of a vehicle you file a notice of release of liability with your states Department of Motor Vehicle (DMV)., this agency must be notified so they may keep their database update regarding the car’s change of ownership. Apart from protecting yourself from any criminal or civil liability arising from the vehicle, you will not be charged for anything as long as you have complied with DMV’s required documents regarding sale or transfer of the car’s ownership. Also, no more billing notices will be forwarded to you once you relinquish rights to your old auto.

Take note as well of the Notice of Transfer and release of liability (NRL) forms which will serve as notification to the DMV. Such documents will be used for transfer of ownership. You must also provide the DMV with all information and papers as required by the Vehicle Code. Among these would be personal information and contact details, vehicle data and odometer reading on the date of sale or transfer. Failure to comply would mean difficulty for the DMV to process release of liability, and might render legal hassles in the future.

These processes should be complied with whether you donated or sold your old car to someone else, and frees you from legal ownership. From thereon, you’re protected by the NRL from liabilities such as parking or traffic violations, as well as civil litigation arising from driving of your old car by the person who bought it, or the beneficiary of your donation. To ensure that the DMV gets the information on time, personally complete the NRL process and mail it yourself. Doing all these yourself will give you peace of mind that the necessary requirements for release of liability have been complied with.