I asked about this specific use case to the dmv expert and he said there is no issue with private party. Just sign the title over within 10 days.
I guess we will find out when I do this. Strange we can’t get a clear answer on this.
Btw here are some things i found online:
- dmv handbook on use tax: 4.040 Transactions Subject to Use Tax - California DMV
- 10 day law: Sales And Use Tax Law - Section 6277
- CDTFA book for dealers - bottom of page 5 of the pdf - https://www.cdtfa.ca.gov/formspubs/pub34.pdf