Hi Everyone --
Even though this thread is a year old already, I want to add to it because it was instrumental in getting my own machine titled and registered here in California. And as anyone who's doing a Google search using keywords such as "California", "titling", "barn find", etc. will find, this thread will be one of the very first of search results to come up. So whether you have an XS650 or, in my case, a 1937 Sunbeam Model 9 (an old British thumper) hopefully this will be a benefit to all by at least saving others the expense of using a titling service which is just a waste of money. I'm going to relate my experience with a few additional thoughts if any:
I bought my 'bike from a really old miner-type guy up north with not only no existing paperwork, but not even a license plate as well. To make things more difficult, whether it's a domestic or foreign make from back in the day, what passed for a VIN# won't be anything like what the DMV clerks are used to seeing now (since 1982?). In my case both frame and engine numbers were only five digits and included both a dash and a slash. My big worry as a vintage 'bike enthusiast is the fear of the CHP disregarding the old numbers and instead whipping out a drill (NOOOOO!!!!!), pop rivet gun and attaching a new bright and shiny new aluminum VIN# plate to the frame or engine. Not only does it lower the value of your machine upon sale at some point hopefully long down the road, but it puts a kind of taint on it in the eyes of others as well. This shouldn't be a worry though if your machine is stock and shows no signs of major alterations.
The main thing I learned from this is to show up to the DMV with as much paperwork as you can throw at them. If you show up with simply a lost title form and the comment that it's been in your family forever and a day -- which may be true -- it'll be hard and the clerk will be immediately skeptical from the get-go. If there's no record on their system then, in the clerk's words, "We need to create a paper trail from scratch" and to do that, they love, love, love to see as many of their DMV forms as possible already filled out by you. That said, at a minimum all you need from the previous owner is a handwritten bill of sale. Get something from the former owner basically stating the year, make, model, frame and engine numbers, mileage (if known) and the price paid. Also a sentence or two stating that a search was done and the old paperwork and/or plate couldn't be found anywhere and is presumed lost. Finally, his/her signature. That's the minimum you need from the former owner. I also had the former owner sign a DMV-provided blank bill of sale form (form 135) and a power of attorney form (form 260) as well. The power of attorney form is overkill but a good thing to have since it authorizes you to conduct any unfinished business at the DMV counter that still requires the signature of the former owner. Good to have if the guy you bought your machine from is a nine hour drive north of where you now are.
So, take the above paperwork along with completed forms 343 (Application for Title), Statement of Facts (form 256) and a blank Vehicle Verification form (form 31) along with a blank check to the DMV and they'll then issue you a temporary registration, paid receipt, and an Application for Vehicle VIN# with the DMV clerk's signature already on it. This last one you'll have to take with you to the CHP to have the 'bike VIN# verified. Don't be freaked out by the title of the form -- it doesn't necessarily mean that they're already planning on attaching a dreaded aluminum tag to your 'bike, it's just to verify the existing VIN#.
Next, because in my case the Torrance CHP only take appointments, I had to wait two weeks before going there. Okay though as I already had my temporary registration so I could start riding now if I wanted. Before going to the CHP, make a photocopy of everything the DMV handed to you at your local library or Kinkos. Be prepared to hand your photocopies to the CHP officer which they will keep. Forever. The officer will then look at the numbers on your machine and then disappear into a back office somewhere verifying that what he's seen hasn't been reported stolen somewhere, sometime, someplace in the last century. Assuming all is legit (in my case there was no record anywhere), he'll finally come back out wiping the donut crumbs off his/ her uniform and hand back to you your original paperwork (again your copies of same which they keep) and a now completed and stamped Application for VIN# form. Take all of this back to the DMV and they'll issue you a registration and your new plate and tags. Title will show up about two weeks later in the mail.
Some notes:
Showing up to the DMV -- but much more so to the CHP -- with a book on the history of your make of 'bike lends you some credibility. In my case I had in a hand an out of print book on the history of Sunbeams which listed in the appendix what you could expect for frame and engines numbers for any particular year/ model. This was a small help at the CHP.
Know who you're buying from. If the person you're buying from ever balks at issuing you a bill of sale (and power of attorney if needed) written like I previously described or says that they'll mail it you later... run, don't walk, away with your money still in hand. Most of us think that statutes of limitation last for say, seven years or so. Not so with anything stolen. That same CHP guy told me of a guy who came in with a 'bike that he said had been sitting in his garage for just past eight years and he now wanted to get it all legally roadworthy again. The officer then did his thing and later came back reporting that not only was the 'bike reported stolen eight years ago, but that he now had the time to enjoy a longer conversation with said "owner".
If all of this sounds really long and complicated, it's really not. Aside from waiting times at both the DMV and CHP, I spent less than fifteen minutes at the counter of both places.
Actually having the 'bike with me was only required at the CHP office. The San Pedro and Torrance office DMV clerks could have cared less about actually getting out of their chairs to go outside and see it.
In summary, make sure you have a bill of sale from the former owner, completed forms 135, 256, 343, 260 (cover-your-ass backup Power of Attorney form -- optional) and a blank form 31 (which actually never ended up being used). DMV issues a temp registration followed by an appointment with the CHP and then immediately back to the DMV for registration and plate + tags followed by your permanent title in the mail a few weeks later.
As an aside, I've been buying and selling vintage and older motorcycles for my own use since the late 80s with and without titles here in my birth state of California and this seems to be the most up-to-date way things are now done. More of a hassle than the way it was done when I was 17 -- 31 years ago -- but still not as expensive or time consuming as having to use a title service.
Finally, a big thanks to the original poster -- Xumi -- who confirms for myself and others that this is how it's done now.