Why the Report of Sale REG 51 Matters
The Report of Sale REG 51 is the heartbeat of every used-vehicle transaction in California. Completing it accurately protects your dealer license, keeps customers legal on the road, and avoids costly citations from DMV inspectors (California Vehicle Code §4456).
1. Order and Control the Forms
- REG 51 books are controlled DMV inventory; order them with Form OL 395U mailed to Occupational Licensing.
- Log each serial number as soon as the package arrives. California law requires forms be used in strict numeric order and stored securely (DMV V.I.R.P. Manual Ch. 8).
2. When a Sale Becomes a “Sale”
The date sold is the earliest of: buyer pays, signs a contract/security agreement, or takes possession of the vehicle (VC §5901). Mark this date on every copy of the REG 51 and on the window-sticker temporary tag.
3. Completing the REG 51—Box-by-Box
- Vehicle description: year, make, model, VIN—print clearly in upper-block letters.
- Odometer: disclose reading and brand (actual, not actual, exceeds).
- Buyer section: full legal name, address, DL/ID number.
- Fees collected: registration, Doc Fee (max $85 or $150 if electronic filing), sales tax, smog, county use tax.
- Dealer info & salesperson license number.
Tip: Corrections must be single-line strikethrough plus initials; no white-out (V.I.R.P. Manual §8.015).
4. Issue the Buyer Copies Immediately
- Hand the Temporary Identification copy to the buyer; it doubles as the window tag and proof of ownership for 90 days.
- Give the buyer a printed Temporary Operating Permit only when delays (missing title, smog hold, unpaid parking fines) prevent plates from issuing; note permit number in deal jacket (VC §4456(c)).
5. Transmit to DMV on Time
- Manual dealers: Mail the white “DMV Copy” with fees within five calendar days of sale (VC §4456(a)(1)(B)).
- BPA partners: Upload the electronic ROS inside your provider portal the same day, then drop documents in the red confidential envelope for overnight pickup (DMV BPA Program Guide).
Late filings risk a $5–$25 penalty per vehicle plus registration penalties charged to your customer.
6. Collect & Remit the Correct Fees
- Registration, transfer, use tax, weight fees, and any unpaid parking or toll obligations must accompany the ROS submission (DMV Fee Calculator).
- The Doc Fee is taxable; disclose it on the sales contract and REG 51.
- If you advance fees, keep DMV receipts in the deal jacket; auditors will ask.
7. Retain & Void Properly
- Keep the dealer copy of every ROS four years— same period DMV retains records. Store by book number for quick retrieval.
- If a deal collapses before delivery, mark all copies “VOID,” attach REG 256 Statement of Facts, and keep them.
- Lost original? Complete an “in-lieu-of” REG 51 referencing the missing serial number and document the reason on a REG 256 (§8.025).
8. Common Do’s and Don’ts
| Do | Don’t |
|---|---|
| Verify buyer name against DL before writing the form | Fill the form with pencil or erase data |
| Submit ROS within 5 days / 1 day for BPA | Hold ROS until financing funds |
| Charge the correct Doc Fee limit | Add smog or doc fees twice |
| Log voided forms | Trash spoiled forms |
| Staple ROS to contract in deal jacket | Leave loose copies in sales desk |
9. Quick BPA Workflow (If Enrolled)
- Scan driver license; BPA software auto-fills buyer fields.
- Enter sale data, collect e-signature, print REG 51 and temp tags.
- Collect fees; system balances against DMV tables in real time.
- Transmit batch before close of business; hand customer plates if inventory is on-hand.
10. Final Checklist Before the Customer Drives Off
- ✔ REG 51 complete, legible, and signed
- ✔ Buyer copy & window tag issued
- ✔ Fees and taxes collected
- ✔ BPA transmission or DMV envelope sealed
- ✔ Deal jacket contains: purchase agreement, ROS dealer copy, odometer form, finance docs, payoff/vehicle acquisition proof
Penalties for Non-Compliance
DMV inspectors can cite a dealer $50–$250 per violation or refer the case to Occupational Licensing for formal action, including license suspension (VC §11705). Keeping ROS procedures tight is your best defense.
Bottom Line
Mastering the Report of Sale REG 51 process is simpler when you break it into these ten steps. Follow the timing rules, double-check every field, and maintain airtight records—your customers, your cash-flow, and your dealer plate will all stay on the road.
Sources
- California Vehicle Code §4456 & §5901 – leginfo.legislature.ca.gov
- DMV Vehicle Industry Registration Procedures Manual, Chap. 8 – Report of Sale – dmv.ca.gov
- California DMV Business Partner Automation Program Guide – dmv.ca.gov
