what is a 'Lien Release Statement'
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Instructor
Joined: Jul 2007
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From: Kingsville ON
what is a 'Lien Release Statement'
The forum has some great tips on buying cars - but some of us Cdn's need just a little extra help ....not that we are that slow ... but
What is a Lien Release Statement? If you are buying from a private person would that be a notarized letter stating the title is clear? Or is it a pre-printed form of some sort? If buying from a dealer - does it need to be notarized? Are all states in USA similar?
Sure appreciate the help
Greg
What is a Lien Release Statement? If you are buying from a private person would that be a notarized letter stating the title is clear? Or is it a pre-printed form of some sort? If buying from a dealer - does it need to be notarized? Are all states in USA similar?
Sure appreciate the help
Greg
Team Owner
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From: Northern, VA
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Usually, it is the document signed by a lender who holds the title to a vehicle while it is being financed. In other words, you take out a loan with X, X holds the title until the loan is repaid. Or if the car is sold early, the loan has to be paid off and then the title holding finance/bank, issues a lien release meaning the loan has been satisfied.
Le Mans Master
Joined: Mar 2007
Posts: 6,666
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From: Mission Viejo CA
Usually, it is the document signed by a lender who holds the title to a vehicle while it is being financed. In other words, you take out a loan with X, X holds the title until the loan is repaid. Or if the car is sold early, the loan has to be paid off and then the title holding finance/bank, issues a lien release meaning the loan has been satisfied.
I think each state is similar. Below is a link to Wisconsin DMV that may help explain the process.
http://www.dot.wisconsin.gov/safety/...r/sellrite.htm
Race Director
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From: Toronto, Canada
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The forum has some great tips on buying cars - but some of us Cdn's need just a little extra help ....not that we are that slow ... but
What is a Lien Release Statement? If you are buying from a private person would that be a notarized letter stating the title is clear? Or is it a pre-printed form of some sort? If buying from a dealer - does it need to be notarized? Are all states in USA similar?
Sure appreciate the help
Greg
What is a Lien Release Statement? If you are buying from a private person would that be a notarized letter stating the title is clear? Or is it a pre-printed form of some sort? If buying from a dealer - does it need to be notarized? Are all states in USA similar?
Sure appreciate the help
Greg
Heel & Toe
Joined: Jun 2007
Posts: 18
Likes: 0
From: La Costa California
If you are buying from a private party, and the car is represented to be free and clear, but the Seller doesn't have the Title Certificate, and the Registration shows a lienholder (Bank), a Notarized Lien Release from that Bank is required stating that the loan is paid in full. Then you submit that, along with a Request for Duplicate Title Form to the State DMV.
If the Title is lost, but no Lienholder is shown on the Registration, all that's required is to submit a Bill of Sale and Request for Duplicate Title Form to that State's DMV. A new Title will be issued to you.
No Lien Release is required if the seller has the Title Certificate. He simply signs off on the title, you take that to the DMV for processing
If you are buying from a Dealer, and paying cash, he will take care of any DMV issues such as transferring title, etc.
These form are usually available on line at your state's DMV site.
Gary
If the Title is lost, but no Lienholder is shown on the Registration, all that's required is to submit a Bill of Sale and Request for Duplicate Title Form to that State's DMV. A new Title will be issued to you.
No Lien Release is required if the seller has the Title Certificate. He simply signs off on the title, you take that to the DMV for processing
If you are buying from a Dealer, and paying cash, he will take care of any DMV issues such as transferring title, etc.
These form are usually available on line at your state's DMV site.
Gary
Last edited by Gleason; Aug 8, 2007 at 10:26 PM.
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In states that do not require the lien holder to hold the title, a lien release letter will be sent to the owner once the loan is paid off.
Racer
Joined: Jun 2007
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There are a couple of interpretations on this.
A "lein release" statement from an ownwer authorizing a dealer to pay off an existing loan on a trade. In this case the previous owner is free and clear from any further obligations and the dealer has guaranteed to pay off the loan.
A "lien release" letter from a bank or lending institution stating that the original loan on said vehicle has been satisfied / paid in full. This letter along with the title is necessary to obtain a clean "lien free" title for the new owner.
You have to understand that just because a person is holding a title it dosen't mean that it is free & clear. If there is a lien it has to be stated on the title. If you buy a car from an individual and they give you a title that has "lein satisfied" stamped on it, you usually still need the release letter on the lending institutions letterhead.
If you have a particular situation you are welcome to send me a PM and I am glad to assit.
A "lein release" statement from an ownwer authorizing a dealer to pay off an existing loan on a trade. In this case the previous owner is free and clear from any further obligations and the dealer has guaranteed to pay off the loan.
A "lien release" letter from a bank or lending institution stating that the original loan on said vehicle has been satisfied / paid in full. This letter along with the title is necessary to obtain a clean "lien free" title for the new owner.
You have to understand that just because a person is holding a title it dosen't mean that it is free & clear. If there is a lien it has to be stated on the title. If you buy a car from an individual and they give you a title that has "lein satisfied" stamped on it, you usually still need the release letter on the lending institutions letterhead.
If you have a particular situation you are welcome to send me a PM and I am glad to assit.
Melting Slicks
Joined: May 2006
Posts: 2,324
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From: MN
All it is is a statement, usually on a form dictated by the state you're in, that says that a particular lien against a car has been satisfied and is released. Usually, you cannot transfer a title to a new buyer without this legal form attached to the title of your car. Most banks, etc. don't hold the actual title to the car, but the lien is either noted on it or recorded at the state. The DMV can see this record on their computers when you try to get a title transferred.
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Verdad Gallardo
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From: Tucson Arizona
A Lien Release Statement would be completed by a lien holder of record to release the lien against certain property used as collateral to a loan. Get professional advice.
I recommend using a private title service for automobile title and registration matters. You might want to do so as well. They charge a nominal fee but they offer convenience and time-savings (versus dealing with a State Motor Vehicle Department), they give title advice, they handle all aspect of title transfers and vehicle registration and they can issue license plates on-the-spot.
I've titled and registered numerous company vehicles and even a new horse trailer or two through a private title service. They have saved my butt on more than one occasion. Once I was buying a newly manufactured stock trailer through a self-proclaimed dealer...at a great price. The new trailer had a certificate of origin but the dealer was essentially trying to pass-off his title problems onto me. The title service wisely advised me to walk-away from the deal until the dealer cleaned-up his own title mess.
If you want a private vehicle transaction handled properly, a private title service is often a good way to go.
I recommend using a private title service for automobile title and registration matters. You might want to do so as well. They charge a nominal fee but they offer convenience and time-savings (versus dealing with a State Motor Vehicle Department), they give title advice, they handle all aspect of title transfers and vehicle registration and they can issue license plates on-the-spot.
I've titled and registered numerous company vehicles and even a new horse trailer or two through a private title service. They have saved my butt on more than one occasion. Once I was buying a newly manufactured stock trailer through a self-proclaimed dealer...at a great price. The new trailer had a certificate of origin but the dealer was essentially trying to pass-off his title problems onto me. The title service wisely advised me to walk-away from the deal until the dealer cleaned-up his own title mess.
If you want a private vehicle transaction handled properly, a private title service is often a good way to go.
