Joint Ownership of a Car Title in California: And vs. Or, JTRS, COMPRO

In California, two or more people can share legal ownership of a vehicle, and joint ownership of a car title in California turns on a single word printed between the names. Under Vehicle Code Section 4150.5, names joined by “or” let either owner sell or sign over the car alone, while names joined by “and” require both signatures for any transfer. That one conjunction also decides whether the survivor inherits automatically or the deceased owner’s share heads to their estate.¹

What “And” vs. “Or” Actually Does

When the title reads “Jane Doe OR John Smith,” the DMV treats the vehicle as held in joint tenancy by default. Either owner can transfer, sell, or release the vehicle without the other’s signature. Each co-owner is deemed to have granted the other full authority to dispose of the car. If one dies, ownership passes to the survivor without probate.¹

When the title reads “Jane Doe AND John Smith,” both owners must sign to transfer the vehicle. Neither can sell or sign over the title alone. That gives each co-owner veto power, which is protective, but it also means every future title change depends on cooperation from the other person.¹

Most co-ownership disputes start here. People add a family member using “or” without realizing they’ve handed that person the power to sell the car independently. Or they use “and” between partners and then find neither can act without chasing down the other for a signature. Pick the conjunction on purpose.

Ownership Designations You Can Put on the Title

Beyond “and” versus “or,” California recognizes several designations that appear after the names. Each carries different consequences during life and at death.

Joint Tenancy With Right of Survivorship (JTRS)

When “JTRS” appears on the title, or when names are joined by “or” without any other declaration, the vehicle is held in joint tenancy. When one owner dies, the survivor automatically inherits the full interest without probate. This is the common choice for spouses and close family members who want a simple transfer at death.²

Tenancy in Common

When “Tenants in Common” appears on the title, each co-owner holds a separate interest that does not pass automatically to the surviving owner. A deceased co-owner’s share goes to their estate and is distributed under their will or California’s intestacy rules. Business partners and co-owners who want their share to go to their own heirs typically use this structure.²

Community Property (COMPRO)

California is a community property state, and vehicle titles can reflect that. When “COMPRO” appears after co-owner names joined by “or,” the vehicle is treated as community property. The designation is available to married couples and registered domestic partners. Either spouse can transfer the vehicle during life. At death, the deceased spouse’s interest passes under their will or community property succession rules, not automatically to the survivor as it would under JTRS.³

Selling a Jointly Owned Car

Whether you need one signature or two comes back to the conjunction. If the names are joined by “or,” either co-owner can sign the title over to a buyer without the other’s consent. The law treats each co-owner as having already granted the other full authority to dispose of the car.¹

If the names are joined by “and,” both must sign. No exception exists for convenience or disagreement. If one co-owner refuses, the vehicle cannot be legally transferred. That becomes a serious problem after a falling out, a divorce, or a loss of contact.²

What Happens When a Co-Owner Dies

The death of a co-owner triggers different processes depending on the designation on the title.

For vehicles held in joint tenancy (JTRS) or with names joined by “or,” ownership passes automatically to the surviving co-owner. The survivor files an Affidavit for Transfer Without Probate (Form REG 5) along with a death certificate. No use tax is due, and probate isn’t required.³

For vehicles held as tenants in common, the deceased co-owner’s interest goes to their estate rather than to the surviving co-owner. The vehicle can still be transferred using a REG 5 with no use tax, or through Letters Testamentary or Letters of Administration issued by a probate court. If the transfer happens through probate documents rather than a REG 5, use tax may be due.³

For vehicles designated as community property (COMPRO), the deceased spouse’s interest passes to the heir, executor, or administrator. A REG 5 transfer to the heir is tax-free. Transfers processed through Letters Testamentary or Letters of Administration may trigger use tax.³

Liability and Insurance for Both Names on the Title

Every person listed as an owner on a California vehicle title is personally liable when someone drives that car and causes injury or property damage, even if the owner wasn’t behind the wheel. Under Vehicle Code Section 17150, owners are on the hook for harm caused by anyone driving with their permission, express or implied.⁴

Vehicle Code Section 17151 caps this vicarious liability at $15,000 for injury to one person, $30,000 for injuries to multiple people in a single accident, and $5,000 for property damage. Those caps apply only to liability that arises purely from ownership status, not from a situation where the owner was also negligent in some other way, like knowingly lending the car to an unlicensed driver.⁵

Those caps are low by modern standards. A single serious accident can easily exceed $30,000 in medical bills alone. Because both co-owners face liability as “owners,” both should be listed on the insurance policy. If co-owners live at different addresses, the garaging address (where the car is primarily kept) determines the insurance rate. Listing the wrong address can lead to denied claims or policy cancellation, so co-owners who split time between locations should clarify the arrangement with their insurer.

If the vehicle is financed, both co-owners are typically named on the loan. Missed payments affect both credit reports, regardless of any private agreement about who pays.

Use Tax and Gift Tax When Names Change

Adding or removing a co-owner can trigger California’s use tax, calculated at the same rate as the local sales tax based on where you register the vehicle. The tax applies to the market value of the ownership interest being transferred.³

Several exemptions can eliminate that tax:

Transfers between spouses, registered domestic partners, parents, children, grandparents, and grandchildren are exempt. Siblings qualify only if both are under 18 and related by blood or adoption. The relationship must be documented with a marriage license, birth certificate, or similar official record.⁶
Transfers to a surviving co-owner or heir using Form REG 5 are not subject to use tax, regardless of the ownership designation.³
Moving a vehicle into or out of your own trust, or transferring a vehicle into or out of a trust as a gift, is exempt.³

The family exemption does not apply to transfers between stepparents and stepchildren when no biological parent or child is part of the transaction, and it doesn’t cover transfers between ex-spouses after a divorce decree.⁶

Federal gift tax rules can also apply. If you add a co-owner by gifting them a half-interest in your vehicle, and that half-interest is worth more than the 2026 annual gift tax exclusion of $19,000, you must file a gift tax return (IRS Form 709).⁷ No gift tax is actually owed until your cumulative lifetime taxable gifts exceed $15,000,000.⁸ The filing requirement applies even when no tax is due, which matters primarily for collectible or luxury cars.

How to Add a Co-Owner

Adding a co-owner is treated as a name change by the DMV. You provide the current certificate of title, signed by the existing owner, along with a completed Statement of Facts (Form REG 256).⁹ If the original title has been lost, request a duplicate using Form REG 227 before starting.¹⁰

If the vehicle has an existing loan, you need authorization from the lienholder before the DMV will process the change. The DMV charges a $15 transfer fee.¹¹ After processing, the DMV issues a new title showing both owners and the ownership designation (JTRS, Tenants in Common, or COMPRO).

Watch the conjunction on the application. The DMV prints exactly what you submit, and changing “and” to “or” later requires running through the title change process again.

How to Remove a Co-Owner

Removing a co-owner requires the current certificate of title, signed by both parties. The departing co-owner completes the release of ownership section on the title. You then submit the title to the DMV along with a completed Statement of Facts (Form REG 256).⁹ If a lienholder is on the title, their written approval is required before the DMV will process the change.

The DMV charges a $15 transfer fee, and a new title is issued in the remaining owner’s name alone.¹¹ Removing a co-owner may trigger use tax unless one of the family or gift exemptions applies. If the departing co-owner is a spouse, parent, child, or grandparent, the transfer is exempt. Otherwise, the DMV assesses tax based on the market value of the interest being transferred.⁶

If the title has been lost, request a duplicate using Form REG 227 before starting. Both parties still need to sign the new title.¹⁰

1
California Legislative Information. California Vehicle Code VEH 4150.5
2
State of California Department of Motor Vehicles. 1.035 Co-Owners (VC 4150.5 and 9852.5)
3
State of California Department of Motor Vehicles. 4.040 Transactions Subject to Use Tax
4
California Legislative Information. California Vehicle Code 17150
5
California Legislative Information. California Vehicle Code VEH 17151
6
California Department of Tax and Fee Administration. Exemptions and Exclusions: Vehicles, Vessels, Aircraft – Frequently Asked Questions
7
Internal Revenue Service. Frequently Asked Questions on Gift Taxes
8
Internal Revenue Service. Whats New – Estate and Gift Tax
9
California Department of Motor Vehicles. Title Transfers and Changes
10
California DMV. Application for Duplicate or Transfer of Title REG 227
11
California Department of Motor Vehicles. Registration Fees