2005 California Vehicle Code Sections 5600-5604.5 Article 1. Procedure to Transfer

VEHICLE CODE
SECTION 5600-5604.5

5600.  (a) No transfer of the title or any interest in or to a
vehicle registered under this code shall pass, and any attempted
transfer shall not be effective, until the parties thereto have
fulfilled either of the following requirements:
   (1) The transferor has made proper endorsement and delivery of the
certificate of ownership to the transferee as provided in this code
and the transferee has delivered to the department or has placed the
certificate in the United States mail addressed to the department
when and as required under this code with the proper transfer fee,
together with the amount required to be paid under Part 1 (commencing
with Section 6001), Division 2 of the Revenue and Taxation Code with
respect to the use by the transferee of the vehicle, and thereby
makes application for a transfer of registration except as otherwise
provided in Sections 5905, 5906, 5907, and 5908.
   (2) The transferor has delivered to the department or has placed
in the United States mail addressed to the department the appropriate
documents for the registration or transfer of registration of the
vehicle pursuant to the sale or transfer except as provided in
Section 5602.
   (b) Whenever a person transfers ownership of a vehicle and is
required to disclose the mileage of the vehicle, the department may
prescribe a secured form to be used for purposes of the odometer
mileage disclosure requirements pursuant to subsection (a) of Section
32705 of Title 49 of the United States Code.
5600.5.  Ownership of title to a vehicle subject to registration may
be transferred to two (or more) coowners as transferee to be held
provided in Section 682 of the Civil Code, except that:
   (a) A vehicle may be registered in the names of two (or more)
persons as coowners in the alternative by the use of the word "or."
A vehicle so registered in the alternative shall be deemed to be held
in joint tenancy.  Each coowner shall be deemed to have granted to
the other coowners the absolute right to dispose of the title and
interest in the vehicle.  Upon the death of a coowner the interest of
the decedent shall pass to the survivor as though title or interest
in the vehicle was held in joint tenancy unless a contrary intention
is set forth in writing upon the request for transfer of
registration.
   (b) A vehicle may be registered in the names of two (or more)
persons as coowners in the alternative by the use of the word "or"
and if declared in writing upon the application for a transfer of
registration by the applicants to be community property, or tenancy
in common, shall grant to each coowner the absolute power to transfer
the title or interest of the other coowners only during the lifetime
of such coowners.
   (c) A vehicle may be registered in the names of two (or more)
persons as coowners in the conjunctive by the use of the word "and"
and shall thereafter require the signature of each coowner or his
personal representative to transfer title to the vehicle, except
where title to the vehicle is set forth in joint tenancy, the
signature of each coowner or his personal representative shall be
required only during the lifetime of the coowners, and upon death of
a coowner title shall pass to the surviving coowner.
   (d) The department may adopt suitable abbreviations to appear upon
the certificate of registration and certificate of ownership to
designate the manner in which the interest in or title to the vehicle
is held if set forth by the coowners upon the application for
transfer of registration.
5601.  Section 5600 does not apply to involuntary transfers, as upon
the taking of possession by a secured party under a security
agreement, or to transfers involving the creation of security
interests subject to Chapter 3, commencing at Section 6300.
5602.  An owner who has made a bona fide sale or transfer of a
vehicle and has delivered possession of the vehicle to a purchaser is
not, by reason of any of the provisions of this code, the owner of
the vehicle so as to be subject to civil liability or criminal
liability for the parking, abandoning, or operation of the vehicle
thereafter by another when the selling or transferring owner, in
addition to that delivery and that bona fide sale or transfer, has
fulfilled either of the following requirements:
   (a) He or she has made proper endorsement and delivery of the
certificate of ownership as provided in this code.
   (b) He or she has delivered to the department or has placed in the
United States mail, addressed to the department, either of the
following documents:
   (1) The notice as provided in subdivision (b) of Section 4456 or
Section 5900 or 5901.
   (2) The appropriate documents and fees for registration of the
vehicle to the new owner pursuant to the sale or transfer.
5603.  A legal owner may assign his title or interest in or to a
vehicle registered under this code to a person other than the owner
without the consent of and without affecting the interest of the
owner.
5604.  Every dealer who, upon transferring by sale, lease, or
otherwise, any new or used vehicle of a type subject to registration,
requires the transferee to insure the vehicle, and every lending
agency which, as the holder of any security interest in the vehicle,
requires its obligor to insure the vehicle, shall, if the required
insurance policy is obtained by the dealer or lending agency and the
policy does not insure the transferee or obligor against damages
resulting from ownership or operation of the vehicle arising by
reason of personal injury or death of any person, or from injury to
property, notify the transferee or obligor of that fact in writing on
a document other than the insurance policy.  The document shall be
in duplicate and signed by the transferee or obligor.
   If the required insurance policy is obtained by the dealer or
lending agency because of the failure or refusal of the transferee or
obligor to furnish or renew insurance in accordance with the terms
of the contract of sale or the security agreement, and the policy
does not insure the transferee or obligor against damages resulting
from ownership or operation of the vehicle arising by reason of
personal injury or death of any person, or from injury to property,
the dealer or lending agency shall notify the transferee or obligor
that the policy obtained does not insure the transferee or obligor
for liability from any claims.  The notice shall be made in writing
on a document other than the insurance policy, or the declaration
page attached to the policy, and shall be mailed, with postage paid
and properly addressed, to the transferee or obligor within 30 days
of obtaining the policy.
5604.5.  (a) Every dealer who, upon transferring by sale, lease, or
otherwise, any new or used vehicle of a type subject to registration,
requires the transferee to insure the motor vehicle shall, if the
required insurance policy is sold by that dealer at the time of the
transfer and the policy does not insure the transferee against
damages resulting from ownership or operation of the vehicle arising
by reason of personal injury or death of any person, or from damage
to property, notify the transferee of that fact in writing on a
document other than the insurance policy.  The document shall be
signed by the transferee and an exact copy shall be furnished to the
transferee by the dealer at the time of signature.
   (b) The document required under subdivision (a) shall contain a
notice in English and Spanish in at least 10-point type that reads as
follows:
      "INSURANCE WARNING
   The motor vehicle physical damage insurance policy you are buying
does not allow you to legally drive on the streets of California.
Generally, in order to legally drive on the streets of California,
you must either purchase a type of insurance called "liability
insurance" or deposit a bond with the Department of Motor Vehicles.
If you drive this or any other motor vehicle without liability
insurance or a bond, a police officer may request evidence of
liability insurance or a bond at the time of a traffic stop.  If you
do not have evidence of liability insurance or a bond during a
traffic stop, the fines can be from several hundreds of dollars to an
amount that exceeds $1,000.  If you get into an accident and do not
have liability insurance or a bond, you will lose your driver's
license for one year.  If you cause the accident and do not have
liability insurance or a bond, you may have to pay the injured person
yourself and these costs may be substantial.
   Liability insurance as well as the insurance needed to obtain a
loan for your motor vehicle may be purchased through a licensed
insurance agent or broker.  The price for both types of insurance may
be more or less than the price for the insurance you are being
offered by the dealer.  The State of California advises you to shop
for insurance because prices may vary substantially.
   I have read this notice and understand that I am about to buy a
type of insurance that is available elsewhere and that does not allow
me to drive the motor vehicle legally on the streets of California.
   I also understand that if I drive on the streets of California
without liability insurance or a bond, then I may be subject to
severe financial penalties, including fines and personal payment for
any damage to others that I may cause while driving.
                 (Spanish translation of the above text to
                 be developed by the Department of Motor
                 Vehicles and to be inserted below the above
                 English version text)
    Dated: __________                   Signed: _________________"
   (c) The department shall also make available a translation of the
Insurance Warning notice set forth in subdivision (b) in any of the
languages used in the most recent statewide voter pamphlet.


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