What a release of liability actually is
A release of liability is the seller's notice to the DMV that the vehicle left their hands on a date. Parking and tickets after that date are not on them. It is not a title and not a lien release.
Is a release of liability a title transfer? No. People also treat it like a lien release. Those are different papers.
A release of liability — notice of transfer — is the seller’s notice to the DMV that the vehicle left their hands on a date. After that date, parking, tolls, and tickets are not on them. It does not move the title. It does not take a lender’s name off the sheet. California prints that on REG 138: Notice of Transfer and Release of Liability. File it within five days. Online NRL is faster. The top card is what they image. The bottom is what you keep.
Texas is VTR-346: Motor Vehicle Transfer Notification. Thirty days for the liability protection. The header says it out loud: this form does not transfer ownership. Until the buyer titles it, the title record can still show the old name. This sheet only marks the sale on the record.
