You are required by law to notify the Department of Motor Vehicles:
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When you change the color of your vehicle.
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When someone else in your family regularly drives your vehicle.
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When you sell your vehicle.
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When you sell a vehicle that was involved in an accident.
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Explanation
In California, you are legally required to notify the DMV within five days of selling or transferring your vehicle. This is done by submitting a Notice of Transfer and Release of Liability (NRL) online. This notice informs the DMV that you are no longer responsible for the vehicle, including any future parking tickets, traffic violations, or legal issues associated with it after the date of sale.
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This question appears in the following DMV practice tests: