I believe these options may/will work:
1) sign the title, leave the buyer's signature/date/odometer reading blank (in case it doesn't work out). Take off the plates and make a bill of sale with a date to void the sale. Have your neighbor call his insurance to add the car. Looks like the new owner has 30 days to transfer the title or incur a $5 fine;
2) get a 30 day temporary plate from DMV for $18.50 then let the neighbor test drive it;
3) If you can't get the temp plates, renew the old plates with a $20 late fee.