The Vehicle Release Of Liability In Colorado

When you sell a vehicle on your own, you risk losing it if the buyer keeps it in your name. You may be liable for the damages if they are involved in an accident while the vehicle is still titled and currently registered in your name. As a seller, you must prepare a bill of sale and transfer the car's title properly. Once the car has been sold, it is critical to cancel the auto insurance policy to cut all remaining ties to the vehicle. You must file the appropriate form within certain days of selling the vehicle, so make sure to finish the task on time. The last thing you want is to expose yourself to liability if the buyer is involved in an accident or crime or commits a traffic violation while the car is still in your name.

The Vehicle Liability Release Form

The release of liability form is a document that states that you have relinquished responsibility for a specific vehicle. It informs your state that you are giving someone else ownership of the car and that they are now responsible for it. Any future car accidents, parking tickets, or fines are not your responsibility. Most states require a vehicle liability release form when relinquishing ownership of a vehicle. It may be known differently in different states. In Colorado, for example, the document is known as a Liability Release, and all private sellers must submit one to document the transfer. Drivers should, however, double-check the documents they have on hand and avoid confusing the form with the bill of sale. A bill of sale is a separate document in many states that records information about the sale, such as the odometer reading. Drivers may confuse the two because the bill of sale also transfers ownership of vehicles and must be submitted to the DMV.

Bill Of Sale

In some states, the bill of sale is used to calculate the auto sales tax. On the other hand, the release of liability form only documents the transfer of ownership to the state. It does not record the vehicle's cost or the condition in which it was found. It simply states that the owner is not responsible for the vehicle. Car owners selling a vehicle must submit all required documents to avoid remaining liable for the vehicle. If not, drivers may be held liable for the vehicle long after they believe it has been passed on to someone else. Instead of leaving it to a dealership or the buyer, drivers should complete this step themselves.

After-Sale Liability Release

Before canceling your car insurance, fill out a release of liability form. Most states allow you to submit the release of liability form online or by mail, but you may need to visit the office in person to finish the paperwork. In general, on the notice of transfer or release of liability form, you must include the following information:
  • Your name and contact details
  • The person who purchased the car's name and contact information
  • The license plate number of the vehicle
  • The make, model, year, and color of the vehicle
  • The registration number of the vehicle (VIN)
  • The odometer reading at the time of the sale
  • The transfer of title date
Contact your local DMV office for more information on what you will need to provide. If your state requires you to submit a release of liability form, you can usually find it online or in person at the DMV.

Submitting The Release Of Liability

After completing the vehicle liability release form, please submit it to the Colorado Department of Motor Vehicles. Do not rely on the driver, your buyer, or a third party to fill out this form for you. Some states allow you to complete the transfer instantly by submitting the form online. Others require you to mail in an application or bring the form in person to a local DMV office. Make certain that you research the acceptable or required methods in your state. Before submitting your liability waiver, photocopy or photograph it if possible. Keeping a paper trail that proves you have transferred vehicle ownership is critical. If fines are issued to the vehicle's registered owner, you may have difficulty proving your innocence without evidence. Create a folder to keep all receipts and documents related to the vehicle transfer after you have submitted all of your documents. Add a copy of the vehicle liability release form in your folder and other documents, such as the bill of sale.