can you sell a car without getting it smogged?

i got a 1988 toyota celica for free from a family friend a few weeks ago. he said its mine to do as i please with it and even suggest selling it before it becomes worthless. there is a guy with a 1965 coupe mustang who says he will trade me for that car and 2500 bucks.

we havent yet smogged the car. is it possible to still sell it and let him do the smogging and what not or do i have to do it before i trade him?

thanks

i live in san francisco california if that makes any difference....