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Title Lien Release Letter Template
When paying out a loan for a vehicle, the borrowing party gives the lending party permission to place a lien on the car, meaning that the lending party holds the title with relevant documentation until the loan is paid out in full. Skipping some time to when you have finally managed to pay off your car - are you aware of the next steps you need to take in order to regain the title to the vehicle? This is where a Title Lien Release Letter comes into the picture.
Alternate Names:
- Vehicle Lien Release Letter;
- Car Lien Release Letter.
A Vehicle Lien Release Letter template can be downloaded by clicking the link below.
The document is used by the lending party after the borrowing party has fully paid off any outstanding payments associated with the loan. The process releases the title and hands it back to the original owner. To legitimize the process, this must be witnessed by a notary.
How to Get a Title Lien Release Letter?
To ensure the process is smooth, ensure that the following criteria are met:
- Ensure that you have fully paid out not only the sum - but any associated interest associated with the loan. It is the responsibility of the lending party to submit the release form to the factual owner which may take up to three business days.
- The lending party must also get in contact with the Department of Motor Vehicles and inform them that all payments have been fully collected.
- In the rare cases that the factual owner hasn't received the release form, they must get in touch with the Department of Motor Vehicles or the lending party itself directly.
- Make an appointment and visit the Department of Motor Vehicles to ensure that they have all the relevant documents regarding your loan payments being completed and to check that the lien has been removed. At this point, you will be issued with a new title.
- It is not uncommon to be asked for the title of the car that you want to be released. Do not panic if you cannot find this document or if you have in fact lost it. You may submit a request to have the Title replaced at the Department of Motor Vehicles.
- The letter should include information about the vehicle, the borrowing and lending parties, details about the representative. The signing should be witnessed by a notary public.
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