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Yes, no problem for the buyer or you as the seller. He is likely referring to CARB certification. Some BMWs have had different motors than other places. For example, the 328i in California would have been sold with the N26 motor, where in other states it could have been the N20. There is no problem registering a N20 motor in California though if the car was originally sold out of state, provided it passes smog (it does). I've bought numerous cars out of state, here is basically an outline of what is needed.
This is from the California DMV:
Purchasing a Vehicle from a Private Individual
If you buy your vehicle from a private party, you have 10 days to register it. To do so, go to your local DMV office (you may make an appointment online or call (800) 777-0133 and:
Present the vehicle title, which must also include the odometer mileage if the vehicle is less than 10 years old.
If you cannot locate the title, you must complete an Application for Duplicate or Paperless Title (Form REG 227).
Present a valid smog certificate. The seller is responsible for providing you with the valid smog certificate if the car is more than 4 years old.
Smog certificates are good for 90 days after inspection. Make sure the certificate does not expire before you register the vehicle.
The smog certificate is not required if the previous owner renewed the registration within 90 days of the vehicle sale and renewed the registration for 2 years.
Submit a completed Application for Title or Registration (Form REG 343).
Pay all fees and taxes (see “California Vehicle Registration Fees" below).
California requires all vehicles to undergo a smog inspection EXCEPT:
Gasoline-powered vehicles model year 1975 and older.
Natural gas-powered vehicles weighing over 14,000 lbs. .
Diesel-powered vehicles that:
Are model year 1997 and older.
OR
Have a gross weight rating of over 14,000 lbs.
Electric vehicles.
Motorcycles.
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