Solving Vehicle Lien Release Problems

Today in our ongoing series about vehicle lien releases, we’re going to look at some documents and instructions on how to obtain a lien release for a motor vehicle, including some specific scenarios where the lien holder may be out of business, may not be able to be contacted, and what are your responsibilities as a vehicle owner.

Example Instructions from New York Department of Motor Vehicles
First, let’s take a look at an example of instructions for lien release. This happens to come from the New York Department of Motor Vehicles. How to obtain a lien release on a vehicle is pretty straightforward. That’s the question on everybody’s mind: how do you get a lien release? We know what a lien is, so we’re not going to get into the definition of a lien.

Satisfying Loan Terms
How to obtain the lien release? Well, first, you have to satisfy the terms of a loan by paying the balance of the loan back to the lender. Now, this is assuming the loan is paid off. If the loan is not paid off, there are still some methods that can be used to get a lien release, and we’ll talk about those a little bit later in this video. But the most common method is you have to pay back the balance.

Notifying the Titling Authority
However, if you notice, this is only step one. Just because you paid off the loan does not automatically make the lien go away from the title. Here’s why: when you pay your last payment to that lender, what they normally do is they mark your account paid, just like any other loan account. They stamp your title paid and they mail it to you, or maybe they’ll mail you a lien release document. They normally do not notify the titling authority like the Department of Motor Vehicles. So that lien is still in their records. The Department of Motor Vehicles or the title agency in your state, whatever it’s called, normally does not know your lien is paid off when you pay off the last payment. Only you know it and the bank knows it. So now you have to get that information to the DMV.

Receiving and Requesting a Lien Release Document
So normally what will happen is the lender will give you a lien release document, which is an official document. Here’s what one looks like, and it’s an application for removal of lien. This happens to come from North Carolina, and we’ll come back to this momentarily. The next thing you need to do is, if you don’t receive the lien release, submit a request to the lender. This is a very common scenario. A lot of times the lien holder will either not send it to you or it might get lost. If that’s the case, you want to get another one as soon as possible.

Proper Method of Requesting a Lien Release
Now, it’s important how you request that. You don’t want to do it by phone. You don’t want to call them up. You don’t want to do it by email. You don’t want to do it through their website. The only way you want to do it is in writing, and there’s a very specific way of doing it. Let’s jump to that right now before we get to the other steps.

Preparing the Lien Release Request
If you are needing a lien release, get the form that’s the official lien release form for your state. Here’s the one for North Carolina. It’s an application for removal of lien. What you do is you fill it out: year, make, body style, model, VIN number, owner, lien holder information, and prepare this on behalf of the lender and send it to the lender. Don’t trust that they’re going to do the work because here’s why: all the people working at that bank are doing other jobs. If you just call them and say, “Hey, get me a lien release,” first of all, they have to find this form. Did you know about this form? Well, they don’t either. So they’re going to maybe try to find it, and as soon as they run into difficulty, they’re going to go back to their other job. So do the work for them. You may not think you have to, it’s not fair to do it, but if you want your lien release, this is what we recommend doing.

Mailing the Request
Send it to them by mail. In addition to sending it to them, put a return envelope already filled out with your name and address and a stamp. You want to make it as easy as possible for that lien holder to send it back because if there’s any work involved where that person at the bank has to do any kind of work, they might just throw it in the trash and not deal with it.

Submitting the Lien Release to the DMV
So then what do you do once you get that lien release? You want to go to the DMV and submit it to them and verify that the lien is removed. Okay, you don’t want to take their word for it that you just mailed it to them and it’s done. You want to verify that it’s done because if you find out three or four years later the lien’s still on your car, it’s going to be harder to take it off then.

Copy of Title and Lien Release
Sometimes you might have to provide a copy of the title along with the lien release. However, most states, like New York, don’t give you a title if there’s a lien.

Responsibilities of the Lien Holder
Now, what are the responsibilities of the lien holder? This is where you might actually have some leverage. Upon satisfaction of a security interest, a lien, the lien holder shall immediately execute a release of security interest and mail the release to the owner. The Department of Motor Vehicles encourages lien holders to cooperate by mailing or delivering a lien release immediately to the lien holder, and if not, you might be subject to action. All regulated financial institutions shall release liens and deliver lien releases no later than three business days after clearance. Now, lien holders break this rule all the time, but in most states, there’s a requirement under the law that they deliver to you a lien release document within a certain period of time. Three days is kind of quick. Most states require 30 days or a month and a half, but they have requirements, and that’s leverage you can use to do that.

Obtaining a Lien Release from a Closed or Failed Bank
Here’s another question that comes up: obtaining a lien release from a closed or failed bank. This is where it gets tricky. If a bank has been closed or they’re not operating anymore, you still have to get a signed lien release. They’re not going to take your word for it at the DMV that this form is okay without their signature. So what do you do? You have to look up who’s authorized to sign on behalf of that closed lender. The FDIC might have information, National Credit Union, Secretary of State. When we do this, we do a full research on that lien holder. We find out who’s their registered agent, who is their admitted carrier, who maybe is the merged entity, and we will prepare this document and we’ll send it out to all the different potential authorized signers because all you need is one. But you’re going to have to do some research to find out who is the authorized party that can sign on behalf. Because if the DMV gets this form and it’s not signed or not signed by the right person, it has to be notarized too. They’re not going to accept it. They’re just going to kick it back. So you want to make sure that you do the research and find out where that lien holder’s authorized agent is.

Importance of Authorized Agents
Just because they shut down doesn’t mean that the lien goes away. And here’s the other thing: most financial institutions, when they stop operating as a lien holder, they don’t just disappear. They don’t just shut the door, turn off the lights, and walk away. Their assets go to some other entity, another bank, another lender because they’re worth money. Even the mailing list of that bank is worth money. So some other bank or institution has a right to the assets and activity of that lender, so they can sign that lien release. You have to find out who that is. That’s the tricky part, and that’s where the research comes in. And usually, we average about an hour or two worth of research to find out who those lien holders are. And you can do the same thing yourself if you need that lien release.

Alternative Document: Letter of Non-Interest
Now, one last thing about this document: make sure that you get the proper document. Every state has an official lien release form like this one. However, sometimes a bank or lien holder is not comfortable signing a lien release because they don’t know the lien is released. If it’s an older loan, it’s charged off, written off, they’re out of business, they might not know about that lien being released. They don’t see it in their system. So instead of a lien release, you might offer them the option of signing what’s called a letter of non-interest. It’s another official form that is an alternative document to a lien release where the lender can sign that instead to clear the lien off of the title.

Conclusion
Hopefully, that gives you information. You can reach our website car titles.com which has more information about how to get a lien release. We have all the forms, we have all the instructions, and there’s also title services available. The main thing is, though, if you have a lien on the vehicle that you want to title, you want to get it off as soon as possible so you don’t run into problems where the vehicle is not legally yours.

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Solving Vehicle Title Problems – Webinar

One of the most common types of issues we deal with clients involves difficult title problems for motor vehicles. The reason it’s difficult is the title is a legal government document that’s issued only by government agencies, and unless you have all your ducks in a row, they’re going to give you a hard time on issuing you a title. This is why a lot of people run into these types of problems getting a new title in their name for a motor vehicle.

Overview of the Presentation
We’re going to jump right in and talk about a few subjects. In the presentation, we will cover the requirements for getting a title, the difference between a duplicate title and a title recovery, abandoned vehicles and the misconceptions surrounding them, mechanics liens, the famous or infamous Vermont loophole, lien releases and lien holder issues, bonded titles, court order titles, and how all these relate to the new calendar year 2023. If you have questions during the presentation, type them into the chat. We’ll keep an eye on them, and if they’re things that will be covered in our regular content, we’ll address those when that subject comes up. We’ll also have some time at the end to answer other questions from the chat or from our live viewers that are emailing in. Expect about 25 minutes for the primary presentation and additional time for questions.

What is a Title and Why is it Needed?
The first topic to get into is what a title is and why it’s needed. A title is a legal government document, as you can see in the picture on the left. This is an example of a vehicle title. Notice it is a certificate, not just a blank piece of paper. It’s not something you can print off from the Internet; it’s an official form, kind of like money, with scroll work and watermarks on the back. It’s issued by an agency, usually the Department of Motor Vehicles, Secretary of State, or Bureau of Motor Vehicles, depending on the state. Remember, you can’t buy a title from a company or download one from the internet; it only comes from the government agency.

Getting a Title
If we look at an example from the state of Oregon, one of the requirements for getting a title is having the original title or ownership document from the last owner. In order to get a new title, you’re supposed to have the last title from the last owner signed over to you. But if you’re here watching this, it’s probably because you want to know how to get a title if you don’t have the old title. If you had the old title, you wouldn’t need much help; you could just bring it to the DMV, turn it in, and they would give you a new title.

Duplicate Title vs. Title Recovery
A duplicate title is a topic many people ask about. A lost title or duplicate title is when you had a title with your name on it printed from the DMV, and you just lost it and want to get a replacement. The only person who can apply for a replacement title certificate is the person whose name is on the title records. Nobody else can apply for a lost title duplicate replacement. If you try to get one as a replacement, they’re going to look it up and say, “No, this title is in the name of Joe Schmoe, and you’re not Joe Schmoe.” The alternative is to pursue other methods such as bonded titles, civil liens, or the Vermont loophole.

Bonded Titles and Alternatives
You could pursue a bonded title, a civil lien (court order title), the Vermont loophole, or a prior owner transfer. We will cover all these in more detail. It’s important to avoid mechanics liens or abandoned vehicles. Specifically, an abandoned vehicle is a status where everyone abandons it, and you have to surrender it to the state, which then auctions it off.

The Vermont Loophole
The Vermont loophole is infamous, often mentioned in various media. It involves applying by mail to the state of Vermont to get a registration ownership without a title. You only need a bill of sale. However, there are downsides, such as paying sales tax based on the vehicle’s full retail book value and the risk of your state not accepting the Vermont registration as a title.

Civil Lien (Court Order Title)
A civil lien or court order title is a powerful way to get a title. You file documents with the court in your county, including a petition, a letter of non-interest, and an affidavit. The court may require proof of possession and identity, and then they give you a judgment of ownership, which you can use to get your title from the DMV.

Bonded Titles
A bonded title involves getting a surety bond that backs up your ownership claims. It is like an insurance policy for the DMV, guaranteeing your statements. However, it’s a branded title, which can make it difficult to sell or finance. Some states don’t offer bonded titles, so you need to check if your state does.

Prior Owner Transfer
A prior owner transfer involves getting the last owner to get a duplicate title. You should send an official form by mail, filled out and typed up, to the last owner, making it easy for them to sign and return. Do not try contacting them by phone or email, as they might ignore you.

Lien Releases
If your vehicle has a lien on it, you need a lien release form signed to clear the title. Send the form to the lien holder, and if they don’t respond, you might need to get a court order title. Even if there’s money owed on the vehicle, many times the lien holder will release the lien if you contact them as an innocent third party.

Special Cases and Additional Resources
For vehicles with brands like salvage or rebuilt, you need to follow additional steps before getting a title. There are resources available on various websites, such as car titles, lien titles, auction titles, and more. For more complicated cases involving dealerships going out of business or needing investigative services, consult with a title agent or private investigator.

DMV Contact and Damaged Titles
Contacting the DMV can be challenging. If you need to get information, it’s best to go in person and get answers in writing. If you have a damaged title, get a new title with your name on it as soon as possible. Titles are very important documents, and getting them properly processed is crucial for ownership and future transactions.

Conclusion
In summary, dealing with title issues requires understanding the specific requirements and processes for obtaining a new title. Whether it’s through a duplicate title, bonded title, civil lien, or other methods, it’s important to follow the correct procedures and be aware of potential pitfalls. For further guidance, refer to the available resources and consult with experts if needed.

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Mechanics Liens For Vehicle Titles

So what happens with mechanics liens or storage liens? The question comes up quite a bit from our clients who are auctions, dealerships, repair shops that have vehicles that have been left there that they need to get off their lot or to get rid of or to get money to pay for the repairs that were done and never, um, paid for by the vehicle owner.

Mechanics Liens for Private Citizens
What about mechanics liens for private citizens? Can you do a mechanics lien to get a title for a car that maybe you purchased and didn’t get a title? Maybe you want to charge storage for a car that’s in your driveway. Can you do that? We’re going to take a look at mechanics liens in general and a few examples in some states to show what the rationale is behind these. What is the common logic behind it?

Federal and State Laws
Because in reality, even though mechanics liens for vehicles for cars and trucks are done differently in every state, the origin of the rules comes from federal law, so you have to kind of have the same process in most states even if it’s a little bit different for each jurisdiction.

Definition of Mechanics Liens
First of all, what is a mechanics lien? Well, technically a mechanics lien, sometimes called a garage holder’s lien or a repairman’s lien, is a process for a legitimate repair facility or automotive facility to get payment for a vehicle that was brought into their facility for repairs or service or storage and the person who owned the car never paid for it.

Practical Example
So somebody brings in a car, says, “Hey, fix my transmission.” You fix their transmission, and then they say, “I’m not paying for it,” and they leave the car there. This is a way for that repair facility to get compensated for their legitimate work on the vehicle and get the car off their lot so they don’t have to be stuck with a car and no money.

Authority and Misuse
Now, it gives some power and authority and privilege to a repair facility to get a title for a vehicle because, in fact, you’re taking away the ownership of that vehicle from the owner for your benefit. So you have some extra authority to do this. Because of that, sometimes this process is misused or abused by repair shops that say, “Hey, I’m going to use this to get titles for my buddy who bought a car on Craigslist that maybe didn’t get a title, right? I’m going to put in a fake mechanics lien.” We’ll talk about that later, but you have to be very careful using this because it’s very highly audited.

The Process: Example from Virginia
So what is the process? Well, here’s an example from Virginia. Mechanics lien storage application: You have to fill in this form. What else do you have to do? You have to attach an invoice that shows you have a mechanics lien under the code in the amount of whatever it is, and that invoice has to be a repair order from the owner of the vehicle authorizing you to do repairs, right? So if you don’t have authorization to do the repairs, you can’t just claim a lien on any vehicle.

Steps to Follow
First thing you have to do is send in a vehicle record request. You notice that’s the first thing. You have to put your name and address of your company and your FE number of your company, your tax ID number, your user agreement number, and street address where the vehicle is held. Then you have to put in a vehicle record request. Basically, you have to submit an inquiry to the Department of Motor Vehicles to get a printout of the ownership and lien holder of that vehicle. You have to do that first, and you’ll see all these other states have that as the first step.

Importance of Initial Steps
Why do you have to do that first? Because if you don’t do that first, the rest of your process will be voided by the government. If they don’t see that you ask the ownership records for that vehicle first thing before you send out certified letters or notices or auctions, they’re going to get your package, and they’re going to reject it because you didn’t ask for this first, right? And you have to have a reason for it. I understand it is unlawful to use this information for any other purpose. Ownership information is protected under federal law called the Driver’s Privacy Protection Act (DPPA), so if you ask for the government to give you the private name and address, of that vehicle owner, you have to have a good reason, and your reason of a mechanics lien is a good one. But if you use it for something else, you can get in trouble. I certify the information will be only used for the purpose.

Completing the Process
So you put in the VIN number, you put in the name of the person that’s asking for it, then the DMV will fill out this part. What do you have to do? Mechanic or storage lien requirements: What are the requirements? We’re going to take a look at this box right here. If the vehicle is worth between $12,000 and $25,000, first you have to ask for that vehicle transcript. That’s the first thing on the list, first bullet point. You have to notify all owners and lien holders by certified mail that you’re intending to sell the vehicle at least 10 days before the auction. Notice that that comes after the vehicle transcript. Here’s why: because if you send out that notice and it’s dated before you get the transcript, they’re going to say, “Where’d you get the information from?” Because it could be wrong. You have to have it dated afterwards.

Auction Requirements
You have to hold the vehicle for a minimum of 30 days. You have to advertise the date and time of the auction 10 days before the auction. So you have to offer this at auction. Now, you probably don’t have to sell it at auction. If somebody bids on the car $1,000, you can say, “I’ll bid $1,001,” and you can own the car. You have to petition the district court in the city or county to order the sale, so you have to get a court order for this. Then you have to be granted the petition, you have to hold the auction, and then you have to get an affidavit from the sheriff that said you complied with the auction and the other criteria. Sounds like a lot of hoops to jump through. You might think, “Well, this is Virginia. It’s a lot harder in Virginia.” Well, we’ll look at some other states.

Compliance and Qualifications
Affidavit of compliance must be completed by the lien holder and be submitted with the rest of it. Vehicle qualification: Does it qualify? Is it non-repairable? I have done all of these. I applied to the DMV to get the lien holder information. Well, guess what? That’s the first step. You have to hold the vehicle in possession for 30 days. I made notice of intent to sell the vehicle. I arranged for the vehicle to be sold. You have to check off you did these. I certify I have complied with these. I certify that all the information is true and correct. If it’s not, it’s under penalty of perjury. Make a false statement as criminal violation.

Audits and Fraud
This is because many times these are used for false purposes. Fake mechanics liens are ubiquitous, and they’ll check this out. They’re going to audit these and make sure that, first of all, you did it right. They’re also going to take a look at your mechanic shop to make sure you’re not doing too many. They’re going to compare the mechanics liens with your tax receipts to see how many dollars in taxes you’ve collected for all your customers that month, and if it’s x amount of dollars, they know there shouldn’t be 20 mechanics liens if you only collected $1,000 in taxes, right? Like, it just doesn’t add up. So they’re going to audit your individual mechanics lien packages and also audit you in general because they know there’s a lot of fraud going in.

Checklist
Here’s another checklist, right? Did you do these things? Did you get the transcript? Do you have the NADA screen value? Do you send the fees? Do you have a bill of sale? Do you have all these things? If you don’t have all these things, they’re just going to reject it. So there’s one example. Let’s look at another state here in a moment.

Example from Utah
All right, so here we are back again looking at another example of a repairman’s lien. You can see that’s what they call it here in Utah. Certificate of sale: What do you have to go through in Utah? You have to have your company name for your repairman information, right? Your business information. You also have to put a statement saying after lawfully advertising the lien, I certify the vehicle was sold to the highest bidder. So you can’t just take it to yourself. You have to take bids on it. Now, normally people don’t come bid on it, but you have to at least offer it.

Utah’s Filing Rules
Here are the rules instructions for filing it: At least 30 days before you sell it, you have to send certified letters to the registered owner. How do you know the registered owner? Well, you have to put an inquiry to the DMV to get that name. You can’t go by what you have from the customer’s note that they gave you or what you found in the vehicle. You have to get a registered or certified printout from the DMV. The customer responsible for the work order also has to be notified. So if the owner and the person who brought in the car are two different people, you have to send to both. The certified letter has to have in it the VIN number of the vehicle, the location, the name and address of the owner as indicated on the work order, and any person claiming an interest. So if there’s a lien holder, you got to send it to them too.

Sale and Notice Requirements
The name and address of your place, your garage, the total amount owing for the services, any interest and storage fees. Remember, you can’t just make that up out of thin air. The interest and storage has to conform to the law, and you have to have the date and time of the sale. No property can be sold earlier than 45 days after you complete the repair, so you have to wait at least a month and a half. Explanation of the right to claim lien: So you have to print out the law that shows how you can do this and also let the owner know that they have the right to recover by posting a bond or paying for it before the sale takes place. You have to also put an advertisement in a newspaper saying you’re going to offer it for sale. That way you get interest in it.

Final Steps in Utah
When the sale is done, you have to fill out all the forms: the TC 839 R, the receipts for certified letters, the copy of the certified letters, proof of publication, copy of the signed work order. If you don’t have a signed work order, you’re out of luck, and then you send it to the DMV, but you also have to satisfy any registered lien, right? So it doesn’t make liens go away in Utah. So that’s another difference you have to look at.

Example from Wisconsin
Last but not least, what about Wisconsin? Wisconsin also has involuntary transfer mechanics lien, right? And you have certain rules you have to go by there. The rules are you have to say, “I am a mechanic who has prepared a written repair order that clearly describes the repairs. The repair was given notice, and they didn’t abide by it,” and you have to sign it under penalty of perjury. And then you go through the same process. You have to verify ownership by getting a vehicle driver record request. You have to wait for that to come back. You have to send out a certified letter. Most of the rules are the same in different states because it goes by federal law.

Conclusion
So here’s the bottom line. If you’re thinking about doing a mechanics lien, first of all, make sure you’re an actual mechanic and you have the right to do this. If you’re not, you’re wasting your time. Now, you might say, “Well, I’m a private person, I’m just a civilian, but I’m going to get my buddy who’s a mechanic to put through a fake mechanics lien.” Be very careful because, like we talked about earlier, the government is going to audit these, and if they contact the prior owner and they say, “No, I never brought my car into that shop. I sold that car on eBay or Craigslist a couple weeks ago,” now they’re going to pull your mechanics lien and your buddy’s license will be at risk. Lots of people get in trouble for doing fake mechanics liens, so don’t do that.

Alternatives
There’s other ways to get a title. In fact, many of our clients who are mechanics that could do a mechanics lien, they would rather do a court order title because it’s easier, it’s less hassle, less headache. You don’t have to wait 30 days, 45 days. You don’t have to have all this documentation. So consider other methods. Court order title: You can see the link below for more information about that. But if you are set on doing a mechanics lien, this will give you a couple of examples. Every state’s a little different. Our website will give you instructions on how to do it if you want to do it yourself. We also have a title service if you want to have us do the work for you. Mechanics liens are a valuable way to recover money as a mechanic, but by itself, it shouldn’t be a way to try to get a title only in particular scenarios.

Watch our YouTube video: https://youtu.be/NpxDQqz9QP4?si=wggl9SRx862_JGRp

Transfer Car Title With No Signature Of Seller On Title

So, when are there allowances to not have a requirement for a signature on a previous title in order to get a new title? Most of the time, when you go to the DMV to get a new title for a vehicle, you will be required to have the signatures on that title from the prior owners. We’re going to look at a couple of exceptions where there are loopholes that you can use to get a new title without having the signature of the prior owner. In this instance, we’re going to look at the state of California.

Basic Title Transfer Requirements
Basic title transfer requirements and what the loopholes are where you don’t have to have the signatures on the title. For example, California title properly endorsed for transfer must have the following: if it’s co-owners with “and” the signature of each owner, meaning both; if the co-owners have the word “or” or “and/or” next to it, you can have either one sign it; if it’s joint tenants, that’s each; also, business entity have the business entity and the authorized signature on it; DBA, same thing; sole owners, trustees. So, this talks about who has to sign it and they have to sign the transfer form and the title.

Exception: Form 262
But if you notice, there’s an exception: a vehicle/vessel transfer and reassignment is acceptable in lieu of a signature line on the title. So, if you don’t have the signature or can’t get the signature on the title, this reassignment form, REG 262, is acceptable in lieu of a signature on the title. So, what does that mean? Well, here is form 262. It’s a vehicle/vessel transfer and reassignment form. Now, it has to be original, original signatures; you can’t do a photocopy. It tells you this form is not the ownership certificate, is not a title. It must accompany the titling document or application. So, if you have this in an application, then you can get a new title.

Using Form 262
So, how do you do this? VIN number, year, make, model, if it has a license plate, bill of sales included, who’s selling it to, odometer statement. Now, buyer and seller must handprint his or her name, date, and sign. What does that mean? You can’t do it electronically; handprint means exactly what it sounds like: hand with a pen. Okay, I acknowledge your dominant reading and the facts of the transfer. I certify under penalty of perjury this is correct. So, even though it’s a loophole and it’s an allowance, they’re telling you you don’t have to have it on a title. They’re taking it pretty seriously. This is a very important form. Seller section: I declare that the foregoing is true and correct, seller’s name, signature, date, and an ID number, driver’s license ID number, or for your dealer, you put the dealer number, and you print the name, put the address. It’s a one-page form, right? So, there is an allowance for not having the signature on a title.

Power of Attorney
Let’s take a look at some other possible exceptions. Here’s another method: using a power of attorney. So, it says the undersigned, and you put the name of the owner, county, year, make, model, hereby make and appoint another person to be the true attorney in fact to sign the name in any documents, title application, and transfer ownership. So, if you have authority from the owner under this power of attorney and specific to a vehicle, the reason why this is important is if you are contacting or approaching a third party to have them give you a power of attorney, you want to make sure that they’re understanding it doesn’t give you the right to sign over their house or open a bank account. It’s specifically for a motor vehicle and it has the year, make, model, and VIN number of that vehicle. That way, it also limits you from transferring other vehicles the person may own, which probably is not what they want. And you have to have your full legal name, driver’s license number, physical address, mailing address, and it has to have a notary because they want to make sure that the person is actually doing this voluntarily and it’s not a forged signature, it’s not some type of scam or a fraud. So, that’s another method of not having to have a signature on the title.

Duplicate Title Application with Ownership Transfer
And here’s a third method, which is available in most states, more states than you might imagine. It’s a duplicate title application with ownership transfer. So, let’s suppose that the owner of the vehicle is not going to sign that prior title because they don’t have the title or they can’t find the title or the title is not available for them to sign. Maybe the title is in another location. What the owner can do is simultaneously get a duplicate with ownership transfer. The net effect of this form is to get a new title issued with your name on it as the buyer, as a new owner, without having the old title present. So, it’s not really even a duplicate title; it’s just a new title with your name on it. In reality, behind the scenes, it’s a duplicate title, but then right away getting a new title with your name. But the net effect is it’s just “get me a new title with my name on it.” Now, it’s pretty complicated, pretty important. In fact, the most important thing on it is a warning to the buyer. They’re warning the buyer that you have to do these things. Signature has to be notarized. You can’t have any liens on it, so you can’t use this to try to sneak a title out from a lien holder. It’s only for free and clear legit vehicles.

Filling Out the Form
So, what do you do to fill out this form? Well, first you put in the VIN number. We see hundreds and hundreds of DMV forms every day that we work on. We love forms like this where the VIN number is right at the top because in reality, the most important detail of a vehicle is the VIN number. Everything else is secondary. When we see the VIN number first, we know that that titling agency, titling authority is really paying attention and efficient about what’s important on a vehicle. Then, year, make, model, VIN number, most important. Okay, so now next is the owner of record, the seller. So, this is who’s on the title right now, whose name is on the title record in the DMV database; that goes here. Then, the purchaser. So, that would be you, Joe Schmoe, 12 Main Street, address, whatever it is. Now, the purchaser has to sign this too. You might think, well, the seller has to sign it; who cares if the purchaser signs it? They want to make sure they’re identifying the person who is the new owner properly because they don’t want somebody to put a vehicle in somebody else’s name arbitrarily when it’s not really what’s supposed to happen. So, that’s section number two. If there’s a lien holder, they would sign here to take off the lien. If you’re putting a new lien, that would go here. Dealers would put information on this section.

Notarization
Here’s the most important part: the owner has to be notarized. I hereby make an application for duplicate title and bold letters. I also transfer to the party listed in that section. And the reason they put it in bold is because there were a few instances where people were just saying, well, I just want you to get a duplicate. You’re not transferring it over. And they didn’t know that they’re actually getting rid of their vehicle. They’re waiving their ownership. This does both. This transfers all interest in the vehicle to a third party, and it has to be notarized. And it gives you the instructions. Mostly, most of it’s what we already talked about. Fax copy is not acceptable. It’s got to be the original ink signature with a notary. You can bring it in person. We recommend mailing it because when you mail it, it goes to the headquarters rather than a branch office, and they know how to handle it better. No big capital letters, bold. In all cases, failure to complete any of the sections will result in the application being rejected. So, you can’t leave anything blank that’s required. You have to have the whole thing filled out. Enter the complete vehicle information. Enter the owner information. We already went through this. Fax copy is not acceptable.

Costs and Fees
Well, how much does this cost? Not that much. The duplicate title fee in this state is $14. Most states are $5, $10, $15, $20. There’s a few states that are $40 or $50. There’s only two states that are much higher than that. The state of Florida is $79.50. The state of Illinois is $95. Those are the two most expensive. Pennsylvania is $53, which is in the middle of the high range. But most states are $5, $10, $15. Texas is $2 for a duplicate title. Now, if there’s a transfer of the vehicle, if there’s a transfer of the vehicle, then you may have to pay sales tax. Most states have sales tax on a purchase, just like if you buy something at Walmart, you pay sales tax. Many states have sales tax on a vehicle. Now, some states do not require sales tax on a private seller transaction, only on a dealer transaction. Some states have no sales tax at all. Washington State, Florida are examples of non-sales tax states. Actually, that’s not true. Those are non-income tax states. Oregon has no sales tax. Wyoming has no sales tax. Other states have sales tax. You may have to pay a title search fee of $7 if you don’t have all the title information. You may be exempt from taxes. Certain instances let you not pay tax depending on what that state allows for exemptions. But the most important thing is here’s another option of not having a signature on the title.

Notice of Transfer of Ownership
And here’s one other trick or loophole that sometimes will help transfer a title. This is a notice of transfer of ownership of a motor vehicle. So, this is mostly designed, and many states have this, to remove liability from the old owner to the new owner. Meaning that, let’s say if you sell a car to somebody in a Walmart parking lot and you give them the keys, you give them the car, give them a bill of sale, even if you give them a title, what happens if before they put it into their name, they go out and rob a bank or do a drive-by or get in an accident and they just run away from the car? Well, I guarantee you the cops are going to look up who that car is owned by and they’re going to come knocking on your door. And if the vehicle caused damage or racked up towing fees or parking tickets or went through toll booths and didn’t pay the fee, you might be liable for that. So, most states have a form that you as a seller can report a sale so that you’re not liable if the person doesn’t put it in their name fast enough. What a lot of people don’t know is, in many states, if you report that sale and the buyer never applies for a new title, in the system they’re going to put a memo of ownership for that person. Once that memo of ownership is recorded, the buyer can then go apply for a new title even if they don’t have the old title.

Alternative Method
It doesn’t always work, but here’s what you can try to do if you are a buyer of a vehicle and the seller didn’t give you a title for whatever reason and they lost it, they’re not willing to help you out. If you can ask them to sign a form like this notice of transfer, a lot of times a seller will be willing to sign this but not be willing to go through the hassle of getting a duplicate title. They’ll sign this one form but they’re not going to jump through hoops to get you your title. So, you get them to sign this form and you mail it in to the Department of Motor Vehicle Title Division, wait a couple of weeks for them to put it in their system with you as the buyer, then go down to that Department of Motor Vehicles with a new title application to apply for a title. Once the DMV looks up and sees that this seller put in a notice that you’re the new owner, they sometimes will accept your title application. It doesn’t always work, but sometimes if that memo name is already in their system, your name, they’ll let it slide. So, if all else fails, try that method of getting a title with your name on it without having the prior title signed by the last owner. It’s a little bit of a trick and it’s always much easier to get the last owner to sign something like this than to sign an actual title. If they don’t have it, they’re not going to wait in line at DMV, they’re not going to pay the fees for a duplicate title, but they might just sign this one form for you because it kind of looks like a bill of sale. And every state has a version of it. So, have them sign it, submit it to the DMV. Technically, it’s for making them not liable for damages after transfer, but in many cases, the DMV will enter your name as a memo owner or a subsequent owner or a contingent owner. Some states call it different things. And once that memo name is put into the system, you might be able to use that record to have your application for a new title be approved without having the prior title attached to it.

Conclusion
Those are four methods that very commonly will work without having to do a court order title or a bonded title or anything much more complicated to get a new legal vehicle title issued with your name on it in the absence of the prior title with the last owner’s signature.

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Why Are Vehicle Title Export Documents So Difficult?

Have you ever tried to export a vehicle and wondered why the Customs and Border Protection (CBP) needs all of those documents and forms? Did it seem like a very complex and bureaucratic process? Well, in the moment of trying to export a vehicle, you may not have thought that that process was beneficial to you, thought it was just a pain in the neck or something that really didn’t have any purpose. However, after seeing this article and seeing this reason for having these documents, you’ll probably see that it’s a good thing to have this customs process be as complicated as it is. Leave your comments below and let us know what experience you’ve had with exporting a vehicle and what questions you have about the process.

The HS7 Form
Well, here’s one of the forms: the HS7 form. It’s the infamous document that all exporters hate to see, hate to have to face. It’s one of many that are needed to export a motor vehicle, and motor vehicles are defined very clearly by CBP. You know what all the definitions are. Exporting a motor vehicle: the 19 CFR is the section that’s jurisdiction over all of this. Basic requirements of pursing and attempting to export a used self-propelled vehicle shall present to customs at the port of exportation both the vehicle and required documentation describing the vehicle to include the VIN. The required documentation normally is going to be the title, and it must be presented 72 hours prior to export because they’re going to do a background check on the vehicle, and that’s going to be important here in a minute. You’ll see why that’s an important part of it.

Documentation Requirements
And as you can see in the second section, the owner must provide to customs the original certificate of title or certified copy and two complete copies of the original. So, you need the original title and two photocopies. If there are any third-party ownership claims, like a lien or another second owner, you have to have it in writing the description of the vehicle and a release of that lien holder or leased vehicle. So, it’s pretty clear what you need. You need the HS7 form and a couple of other documents.

Importance of Proper Documentation
The reason why is, and a lot of times exporters or clients will say, “Well, look, this vehicle has no title. It’s never been titled, hasn’t been titled in a long time.” Well, that’s the trick. Here’s the reason why this is important: a stolen 1968 Chevrolet Corvette was found 37 years later, right before being shipped to Sweden. So this 1968 C3, they used to call it a Stingray, had the little four louvers in the front quarter or the front fender. It says here nearly everyone wants to get their hands on one of these. It was a great car. 1968 was one of the probably the pinnacle of the Corvette model line.

Case Study: 1968 Chevrolet Corvette
So, here’s the car. In 1969, the owner had their worst nightmare. He lived in New York. The car was stolen. He had just gone through a divorce and paid $6,000 to keep the car in his name. He went years without knowing what happened to the car. After years of unknowns, luck finally turned up. The Corvette had been stolen, and the owner tried to ship the vehicle from California to Sweden. U.S. Customs had to complete a routine car check for the car to be shipped to Sweden. As it turns out, the 1968 Chevrolet Corvette had never been retitled. This is important. A lot of times, if you say, “Well, this car has been off the road, it hasn’t been titled, it’s a barn find, it’s in a field,” it doesn’t mean that it’s a legitimate vehicle. That’s the reason you want to get a title.

Importance of a Title
This owner who’s trying to export it, who knows what their knowledge is. They may have just bought it off of Craigslist or eBay or Facebook. Maybe they didn’t know the car was stolen. It doesn’t matter that it was stolen 37 years ago. These records persist for these vehicles. So the fact that this is a very difficult process is actually to your benefit because if it was easy just to ship or next board a vehicle or to get a title, then your vehicle wouldn’t be protected. Think about this guy who had his car stolen in 1969. It was only a year-old vehicle, barely, and now he has the car back. Think how much more that car’s worth. He may have paid $6,000 for it in 1968. Those cars are worth tens of thousands, sometimes six figures, and this paperwork protects you. So, if you’re purchasing a vehicle without a title, just remember that until you have a legal title document printed by the government with your name imprinted on the certificate, you’re at risk because you don’t know what other claims are going to pop up out of the woodwork. So, you want to make sure that you perform your proper due diligence on any vehicle before you take any action.

Due Diligence and Legal Protection
Look, this exporter may have been an innocent bystander. Who knows if he had any awareness that the vehicle was stolen? Probably didn’t. If he’s trying to export it, he knows the government’s involved. If he knew it was stolen, he probably wouldn’t be presenting it to the government to check out 72 hours in advance. The 37 years it was missing, who knows where it was? Maybe it was in a garage. Maybe the person who stole it figured, well, if I hide it for 10, 15 years, it’ll be forgotten about. Maybe it went through two or three owners. Maybe it was never put on the road. I’m sure they’ll be doing an investigation now to see how far removed the current owner is or the exporter is from the thief. Did they live near New York when that happened? It’s being exported from California. But if they can do a background check on that person and find out, well, they lived in New York near where it was stolen, that guy’s probably got some problems. But if there’s a lot of owners in between and kind of a murky history, then it may not come to that.

The Importance of Stories and Procedures
Think about your story as a vehicle buyer. Well, I bought it from a guy. He didn’t have a title. He got it from a guy. It was in a barn. Think about all the stories that you hear from sellers. The old man had it, and he died, and his kids didn’t want it. He sold it to me. That’s the reason for having all these forms and having to follow all these procedures from Customs and Border Protection. So, vehicles issued an original certificate of title, you have to have the title. If there is no title, you have to have a full background check, authentication of documentation. And as you can see, the USCBP is going to do all this. They did it for this guy’s car, and he got it back.

Conclusion
So, consider this due diligence performed by the government, whether it’s a VIN inspection by your police, whether it’s a customs background check, protecting your interest on a vehicle so you don’t end up with something that’s stolen. Or if you do have something stolen, it gets returned to you, the rightful owner. And if you’re a lien holder and you lent money on a vehicle, you also don’t have somebody who’s selling it or shipping it, because as it says right here, if there are third parties, they have to sign off. So, if you lent somebody money on a vehicle, we had a case a couple of years ago where an owner sold a motorcycle to somebody, and they let him pay half of it up front and then $100 a month to pay off the rest. And they rode it for a couple of months and stopped paying. Well, that evidence, that ownership was reflected on the title, and they were able to retrieve it before it was sold or dismantled or taken apart. So these title documents are very important to protect your ownership on a vehicle. Make sure that you get originals, not photocopies, and you verify the originals. We’ve had cases of forgeries of these documents. If you’re going to export the vehicle, you probably want to check it out before you bring it to CBP. Have your state patrol, state police, whoever it is in your jurisdiction double-check the documents to make sure your VIN number is clear. Just because the seller told you it’s clear or you ran a Carfax, which is a worthless consumer-grade background check, you’re not going to know if there’s liens, claims, back taxes, past due registrations, prior owners, or even stolen, for that matter. Sometimes these vehicles are registered as parts only or junk. Can’t do anything with them. So, you want to do a full background check on your own before you start submitting it to DMVs or even selling it to a third party, because if you do, now you’re passing along an ineligible vehicle. In some states, it’s actually a crime to sell a vehicle without a clean legal title. Check out our website for more. You can get all these documents for free to download. And let us know in the comments what your thoughts are on exporting a vehicle and these document requirements.

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