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The tutorial explains how to complete the DMV Release of Liability and pink slip process for car sales in California. First, the seller must fill out the top portion of the pink slip, which includes their signature, as well as the new owner's name and address. After completing the form, the seller tears off the top section to use for reporting the transfer and release of liability. The tutorial emphasizes that this reporting can be done online, which is the easiest method. Further instructions are provided for executing the online process effectively.