This is a general guide and not intended as legal advice.
Notice of Transfer and Release of Liability
As the Registered Owner you were responsible for reporting the sale and transfer of title of your vehicle to the DMV within five (5) days by completing the Notice of Transfer and Release of Liability and delivering it in person or by mail it to the DMV.
As the Registered Owner it was your responsibility to ensure this form was filled out completely and correctly. If the form was incomplete, your vehicle's record would not be updated until the Interested Party applies for the new title.
If this situation occured you may be held responsible for liabilities relating to the vehicle until the record is appended, because the DMV still considered you the Registered Owner.