[Turk]

Matt,
I believe, once the car is licensed and accepted into the California DMV computer, it could be sold and traded like any car. Shouldn't be a problem.
It is the SB-100 number that is issued to the original owner that can't be traded or sold.
Once the registration process is completed using one of those number, the car has been to CHP and a valid VIN number been affixed and the smog referee station have done their thing, the car becomes a legitimate California car with California title etc.

What you do with it afterwards is your business,

TURK