Facing a Lien on Your Car: Legal Implications and What to Do

When the State Has a Lien on Your Car: What Happens Next?

Discover what happens when your car has a lien placed by the state, and learn about the legal implications and steps you can take to address the situation. You can't sell or transfer the title of your vehicle until you clear the lien, but you can still register it in some cases, albeit with varying regulations from state to state.

Unpaid Debt and Title Ownership

A lien on your car means that someone, such as the state, has filed a legal claim against you for an unpaid debt. This can prevent you from selling or transferring the title until the lien is satisfied. The state may have a lien for unpaid tickets or other indebtedness, which will take precedence over a lien from a car financier.

Evidence of a Lien

When a lien is properly filed with the appropriate authorities, it can create what is known as a "cloud on title." This means that the title to the car is not clear and you cannot pass ownership to another party unless the lien is cleared through payment.

The Repercussions of a Lien

Your efforts to sell or transfer the car will be blocked until the lien is satisfied. You will not be able to renew title and registration without first resolving the lien. This can delay the selling or trading process and may result in additional charges, which is why it's important to address the issue as soon as possible.

Check Before Buying a Car

To avoid purchasing a car with a lien, it's advisable to perform a REVS (Record of Encumbered Vehicles System) check before buying. This check can help you identify if any liens have been placed on the vehicle and if the car is made from stolen components, known as a "rebuilt" car. You want to ensure you are not unknowingly getting a car that can cause further complications later.

Clearing the Lien: What You Can Do

If you discover a lien on your car, you can pay off the debt and clear the title at any time. However, it's crucial to obtain a receipt and a release of lien when you make the payment. Failure to do so can result in additional delays and potential financial losses. If the lien is not properly cleared, you may need to pay the lien twice before proceeding with a sale or trade.

Final Notes: This article is not a legal opinion and should not be considered as such. It is always best to consult with an attorney who is admitted to practice law in your state for specific legal advice regarding liens on your car.

Keywords: car lien, unpaid debt, state lien, title cloud, repossession

Additional Keywords: REVS check, encumbered vehicles, title registration, lien clearing, legal consequences