Helping a family member by selling my 1990 car to them.  Agreed to
accept monthly payments with final payment in 12 months.  How do I go
about with making a contract?  Am I liable for car within this 12
month period due to my name is on the owners 'pink' slip?  After bill
of sale, do I change plates?  Any help, or suggestion, will
help....and, yes, I continue to hear the worse business is with a
family member.

Hello.

The DMV has complete instructions for selling a car in California:
How To Change Vehicle Ownership
http://www.dmv.ca.gov/pubs/brochures/reg/reg4004.htm

You will NOT be released from liability unless you actually transfer
title to the car to the other person and complete a Notice of Release
of Liability.
http://www.dmv.ca.gov/forms/reg/reg138.htm
Notice of Release of Liability
http://www.dmv.ca.gov/forms/reg/reg138.pdf

"Complete the California Certificate of Title to Transfer Vehicle
Ownership"
http://www.dmv.ca.gov/pubs/brochures/howto/htvr5/htvr5.htm

If you're selling the car to a spouse, sibling, child, parent,
grandparent, grandchild, you can get an exemption from the smog check
requirement.
http://www.dmv.ca.gov/vr/vr_info.htm#BM2525
You need to complete form REG 256 to get an exemption from the smog
check:
http://www.dmv.ca.gov/forms/reg/reg256.pdf

Unless you have a personalized or other special license plate, you do
NOT need to have the license plate changed.
" Most vehicles have sequentially issued "standard" license plates
that remain with the vehicle when ownership is transferred. If the
license plates is a special interest or environmental license plate,
you must decide if you want to retain the plate for use on another
vehicle, or release your interest in the plate. Complete an
Application for Plates, Stickers, Documents (REG 156) indicating your
retention or release of the special plate and give it to the buyer."
http://www.dmv.ca.gov/pubs/brochures/reg/reg4004.htm

Basically, you can sell this car to the family member on whatever
terms you want.  If you want to do a formal contract, you might
consider buying some forms from Nolo.com:
Bill of Sale for Automobile
http://www.nolobriefs.com/lawstore/products/product.cfm/objectID/D5950D65-2478-4D05-B202D16C8BBA5294
Promissory Note for Individuals
http://www.nolobriefs.com/lawstore/products/product.cfm/ObjectID/FA1D706F-7119-4CB1-86D97B6EFCD76755

If you're concerned that the family member will not pay you, you can
put yourself in as the new lienholder on the Certificate of Title
(i.e., in section 5, on lines 11 to 13).
http://www.dmv.ca.gov/pubs/brochures/howto/htvr5/htvr5.htm

Being the lienholder would allow you to continue as a the legal owner
until the registered owner has fully paid you for the vehicle. Once
the buyer has completely paid you, you could take your name off as
lienholder by filing a Lien Satisfied Statement form (REG 166) with
the DMV. See:
What Must I Do When I Have Paid Off the Legal Owner?
http://www.dmv.ca.gov/pubs/brochures/howto/htvr18.htm


search strategy:
site:dmv.ca.gov


I hope this answers your question. Note that Google Answers is not a
substitute for legal advice. As such, nothing in this answer is
intended as, or should be taken as, legal advice. Thank you and good
luck!

Greetings Beba29:

I would suggest you DEFINITELY get a simple contract of purchase and
MOST DEFINITELY remove and destroy the license plates.  Once, when I
was very young and under-educated about this situation, I sold a car
to a friend who asked if they could keep my plates until they could
get theirs.  They racked up $450 in parking tickets on my plates...
Guess who had to pay?  

Best regards,
journalist-ga

Sales tax: also note that if you officially give a car to a close
relative for free ($0 on the title), they don't have to pay sales tax.
 otherwise, they must pay tax based on bluebook value.