A vehicle lien release is a document that officially declares that the lien on your vehicle title has been removed and you will be free to take action with your vehicle. This document removes any restrictions on what you can do with your car. A person is typically eligible for a vehicle lien release when the loan on the vehicle has been paid back to the lender.
Your lender, who has loaned you money to purchase a vehicle, places a lien on your title until the loan is paid off in its entirety. A lien is a claim on the property for the security of payment. When a lender loans a borrower (you) money to purchase a vehicle, they want to make sure that they are paid back plus interest. Your lender, also known as your lienholder, will remain printed on the front of your vehicle title until the loan is paid off. A lien on a vehicle title is a cloud on the title that places a hold on ownership; once it’s paid off, you can get a title for your car or you can sell it or trade it in.
The process of filing for a vehicle lien release will vary depending on your state, your situation, and your lender. However, the lien release process typically consists of the following four steps:
Step 1: Locate your lienholder
Step 2: Compile your lien release request letter and non-interest letter
Step 3: Mail your lien release request letter through certified mail
Step 4: Obtain the signed lien release letter and apply for a clear title
Your vehicle title lienholder is the lender of your auto loan. To determine who this is, check your bank records and identify the business entity that received your monthly car payments. Once this entity has been identified, make note of the mailing address, physical address, registered agent address, corporate address, and any other address listed for this entity. This information can be pulled from the lienholder’s website or through your state’s Secretary of State business entity database.
To officially request your lien be released from the title of your vehicle, you must send the lienholder a lien release request letter. In this letter, you must include the following information:
If your lienholder has no further interest in collecting on the lien and would like to legally sign off on their interests, ask them to complete a letter of non-interest. The letter of non-interest should include all of the contents of the lien release request letter and should also provide a section where the lienholder can sign away their interests.
Make copies of your lien release documents to be mailed to each one of the addresses listed for your lienholder.
Using the addresses pulled from the Secretary of State or the lienholder’s website, mail a copy of your documents to each address via certified mail. Each envelope should include:
Although mailing identical copies to multiple locations may seem redundant, it is the best way to ensure that your lien release request is received by the appropriate party. As many lienholders do not have a lien release department with staff standing by to release liens as they come in, it is important to attempt to reach as many locations as possible to reach the correct recipient or at least the recipient that has the ability to help.
When you release your lien on a vehicle title by mail, send the document via certified mail. A paper trail will thus be created demonstrating your attempt to release the lien. This evidence will prove useful if your lender cannot be located later. Most DMVs require that you send documents related to motor vehicle transactions by certified mail.
When your lienholder has released the lien on your vehicle, you can take the lien release letter and the letter of non-interest to your state DMV for processing. Before you can receive a clear title for your vehicle, however, you will need to pay all registration and tax fees as well as any title transfer fees.
Typically, your lienholder is required to release your title once the loan has been paid. Unfortunately, that doesn’t always happen. Just because your loan is paid doesn’t mean that the lien has been released; you may still have to go through the vehicle lien release process and notify the DMV of the satisfied loan.
For more information and assistance, learn more about our vehicle lien release process.
It’s the end of your lease, and you want to buy out the car. How do you get a title for a leased car? A leased car is similar to a long-term rental, think of renting a home or office space. At the end of the lease, you can choose to buy out the vehicle from the leasing company or return it.
When you lease a car, the leasing company is the “owner” of the vehicle during the term of the lease. A car lease is an agreement for use of the vehicle between you (the lessee) and the leasing company (the lessor). It’s possible that the leasing company will not hold the title — some leasing companies assign leases to banks or other financial institutions. However, whether it holds the title or assigns it when you lease a car, you’re renting it from someone else, and they’re listed as the owner on the title.
When you make the last payment of your lease, you’ll have the option for a lease buyout. This means you can purchase the vehicle from the leasing company after your lease ends instead of returning it. If you select to buy out the vehicle, the leasing company is supposed to gather all of the necessary lease buyout paperwork, odometer statement, bill of sale, and prior title and file it with the state department of motor vehicles. Unfortunately, the lease buyout title transfer process doesn’t always work smoothly.
The problem happens when the leasing company doesn’t give all of the documents, they may only sign over the title and provide a bill of sale. Sometimes the leasing company is located in a different state than where you reside and they don’t have the correct paperwork for your state process. Waiting for new paperwork to arrive can be frustrating since you will want to get your title as quickly as possible so you can start registering your car with your state DMV.
Consider the vehicle titling process to be the same as buying from a private party or third party. For all intents and purposes, the titling office will see it that way. The leasing company is just the third party in the transaction. Because of this, you have to complete the same requirements that you would for a third-party purchase. You may have already paid sales tax on your lease payments, but you may have to pay a portion of sales tax for the value of the vehicle. In many states, an out-of-state title transfer automatically triggers an inspection requirement. Possibly a new registration and new license plates are required – the license plate was likely in the name of the leasing company. Verify with the leasing company exactly what their lease-end buyout procedure is prior to sending off your final payment.
Ask your leasing company if they have the title on hand. Leasing companies often do not retain vehicle titles in their possession; a company can have an electronic title. This results in the leasing company needing to obtain a duplicate title prior to signing it over to you, which then disrupts the title transfer process. Until you have a new title issued in your name, the vehicle still belongs to the leasing company. Type your application for a new title and any other documents that will be sent to the DMV. Your application is more likely to be read quickly by artificial intelligence and accepted without issues.
All in all, a lease buyout title transfer is a great option if you want to keep the vehicle after your lease ends. Make sure that you thoroughly read and understand your lease agreement so you can decide whether it will be a good option for you. We also recommend taking the steps necessary to initiate the process at least two months before your lease expires. Remember, if the title is not in your name, you are not yet the owner of the vehicle.
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The certificate of vehicle title is a legal document that proves ownership of a vehicle. You can’t just assume ownership by buying a title or even printing yourself a new one — it’s been legally issued by the state’s governing title agency, and can be considered invalid if it has any marks, changes, or otherwise has been tampered with. So what happens if there is an error on your vehicle title?
A vehicle title or certificate of title is a legal document that establishes ownership of a vehicle. Vehicle titles are only printed by the DMV or another authorized state agency. The vehicle title is given to the buyer typically at the time of purchase when ownership is signed over by the seller or dealership.
If you notice an error on your vehicle title, it’s important to address it with your state DMV as soon as possible. An error on a vehicle title can be a misspelling of names, an inaccurate odometer statement, an incorrect sale date, or other miscellaneous errors. An error is not considered to be title document damage, mutilation, or loss of the vehicle title. Do not attempt to make any changes yourself or it may invalidate your title and put your legal ownership status at risk.
Most states actually have a process to fix errors on vehicle titles. In Indiana, it’s called an Affidavit for Certificate of Title Correction. To fix errors on your vehicle title in Indiana, simply complete the Bureau of Motor Vehicles (BMV) form 55582 and submit the completed form to the BMV office. This process is for titles completed in error only and will not work for title transfers.
If your vehicle title is lost, damaged, or stolen, it’s not considered to be a vehicle title error. In this case, if you were the last titled owner, you may be eligible to simply apply for a duplicate title in your state. Be advised that a duplicate title can only be produced from the state DMV where the vehicle was last titled. Additionally, only the registered titleholder in the state DMV records is able to apply and receive a duplicate title. Most states charge a duplicate title fee ranging from $2-$25 per application.
When buying a car, make sure to check the title and the ID of the seller before buying and transferring the title. Once you have received your title, keep it in a safe space. If you know there are issues on your title, get them fixed as quickly as possible to avoid delays further down the line.
A bonded title is a type of vehicle title that is issued using a surety bond when the vehicle owner does not have valid prior title documents or those documents have been damaged. Typically, a vehicle title is signed over to the new owner by the prior titleholder when purchasing the vehicle. If you live in California and you are trying to obtain a new vehicle title without valid prior title documents, you may be able to obtain a bonded title. How do you obtain a bonded title in California?
When the required supporting evidence of ownership is not available and at least one of the following conditions exists, a Motor Vehicle Ownership Surety Bond (REG 5057) or a bond alternative must be submitted:
Registration issued to out-of-state vehicles when their owners are unable to show proof of ownership is called non-transferable registration. Until those conditions are met, the vehicle cannot be sold, transferred, or issued a California Certificate of Title.
Simply completing a Motor Vehicle Ownership Surety Bond (REG 5057) form is acceptable under the following circumstances:
If your vehicle meets the eligibility of a bonded title in California, a surety bond must be obtained to secure the assignment of title.
A bond is required for the fair market value of the vehicle or vessel, as determined by one of the following methods:
If you are applying for a bonded title in California, it’s imperative to note that the bond must be signed by the surety and the signature must be notarized. Some surety companies may preprint a bond with the surety’s signature and notary acknowledgment. This is not accepted in California. The bond cannot be preprinted with signatures, the surety must have their signature notarized.
In California, titles are recorded in the Department of Motor Vehicles (DMV). Missing ownership documents can complicate the title application process. In order to avoid delays and other legal issues, consider applying for a bonded title. This type of title designation is not permanent; after a few years, the bonded title designation will be removed from your California title. Remember to carefully review your state’s laws and regulations regarding vehicle titles before proceeding with any method of title recovery.
CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for your California bonded title or any other title recovery method provided.
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If you are a licensed automotive facility and have repaired a vehicle, chances are that the state in which you are operating has a process for obtaining a mechanic’s lien to ensure you recover your costs. However, if you are not licensed in that state, you cannot file for a mechanic’s lien. The mechanic’s lien process is complex and should only be pursued as a last resort; it is not an easy way to title the vehicle. If you are an authorized entity, check with your state’s Department of Motor Vehicles to find out what steps must be taken to correctly file for a mechanic’s lien.
In the simplest terms, a mechanic’s lien is a process that licensed automotive facilities can use to recover the costs of an unpaid bill. Typically this happens if a vehicle has been towed, stored, or otherwise left unattended by the registered owner with an unpaid service bill for a specific amount of time.
In order to be eligible for a mechanic’s lien in Kentucky, a vehicle or vessel must be in the possession of a person engaged in the business of selling, repairing, or furnishing parts for vehicles and the owner of that vehicle owes that person charges for repairs, labor, or supplies for more than 30 days. Once the vehicle or vessel has met this criterion, it may be sold at auction in order to pay for the accrued charges.
Before the sale can proceed, you must make all reasonable attempts to contact the registered owner and any security interests such as lienholders. This information must come from a title search to ensure the proper parties are contacted according to the DMV’s records. This contact must be made through certified mail to notify the owner and lienholder of the proposed sale. This initial notice of sale must be sent at least ten days prior to the proposed sale date. Be sure to keep all certified mail receipts as they will be needed when applying for a title.
In addition to the notice, you must also advertise the sale in the local newspaper once a week for three consecutive weeks. The advertisement must include the year, make, model, VIN, name of the owner(s), name of the lienholder(s), and the name, address, and phone number of your automotive shop.
Once all notification requirements have been completed, you can proceed with the sale. The sale may be made to an outside buyer, or your shop may also bid on the vehicle. In compliance with Kentucky statutes above (KRS.376.270, KRS 376.280, and KRS 424.130), the purchaser of a vehicle sold under a mechanic’s lien must provide the following documents when applying for a vehicle title:
The Kentucky mechanic’s lien process is an important part of the automotive industry. Commonly, however, mechanic’s liens are filed on a car before the work is finished or in bad faith. To prevent fraudulent applications, the DMV frequently checks the authenticity of mechanic’s liens. If you have done everything right but your application was not accepted by the DMV, do not panic. The steps to filing a mechanic’s lien are complex and often error-prone, so it is unavoidable that some mistakes will be made along the way. To ensure that your application was not rejected in error, resubmit it with any changes requested by the DMV. If your lien application was rejected by the DMV for erroneous reasons and you feel it was appropriate, there are many steps you can take to ensure that your mechanic’s lien is recognized as valid.
For more information on the mechanic’s lien process in Kentucky, click here for a PDF link to these statues. Want help getting started on your mechanic’s lien or storage lien? CarTitles.com is an expert at handling challenging title situations. Let us help you get started with your mechanic’s lien process.
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