Removing A Car Lien In Georgia

A lien is a legal document that protects a property owner if they do not receive full payment for something they have sold. If you fail to make sufficient payments on a lien on a Georgia car title, the lienholder has the right to repossess the vehicle. A car title lien may also give a lienholder the ability to mandate the type of car insurance you must purchase for the vehicle in some states, which will last for the life of the loan.

Removing Name On The Car Title

Because the process is the same, it is critical to treat the removal of a name from a car title as a sale. The person being removed from the title must first complete the back section of the title as if they were selling the car. This person is known as the "seller." The person who will keep the car's title will be listed as the "buyer" and thus will keep the title. The "buyer" will then take the signed title to the DMV to finish obtaining a new title.

Lienholder

If a lienholder is also listed on the title, removing a name from the title is a bit more complicated, and you have a few options:

• If you can pay off your loan to the lienholder in full, you will be able to proceed without their involvement. If you can't pay off your loan, you'll need the lienholder's permission to change the title.
• If the lienholder refuses to agree to a change, you will not be able to remove the desired name from the title.

Removing Lien On The Car Title

When you pay off a lien on your vehicle, the lienholder will remove the lien from your title. To have an Electronic Lien on Title (ELT) released, you must contact the lienholder. The lienholder will: For liens recorded on the paper title itself, the lienholder will:

• Finish the lien release on the title.
• Unless otherwise specified, the title will be mailed to you.
• You have a second lien: the title will be forwarded to the next lienholder.
• If the title is not immediately available, the lienholder will send you a Notice of Satisfaction of Security Interest or Lien Holder's Affidavit (Form T-4).

You will keep the original title with the lien and lien release when you sell or trade the vehicle until you complete a DMV title transfer. A lien release is not required for a lien that has been on a title for:

• At least 10 years from the date the title was issued IF the vehicle is 11 years old or newer.
• At least four years from the date the title was issued IF the vehicle's model year is at least twelve years old.

Suppose your title is ever lost or stolen after the lien has been released. In that case, you must obtain a new Notice of Satisfaction of Security Interest or Lien Holder's Affidavit (Form T-4) to obtain a duplicate title.

Missing Lienholder

If your lienholder is no longer in business or is not licensed, you must:

• Obtain confirmation from a regulatory agency that the company is no longer in operation.
• The GA DDS provides a list of Georgia's major regulatory agencies.
• Send a registered letter to the lienholder at their last known address listed on the state's title records.
• Make a point of requesting a return receipt.

After receiving the returned letter in the mail, you must submit it to your local Georgia Department of Driver Services (DDS) office along with:

• The undamaged green postal card.
• The name.
• A signed letter from the regulatory agency indicates that the lienholder is no longer in business (unlicensed).
• Title issuance fees are required.

This procedure is not applicable when:

• The lienholder is an individual.
• The lienholder company has merged with another and is now doing business under a different name.
• A state agency does not regulate the lienholder company.

Retitling To Remove The Car Lien

Titles can be revoked. Of course, the owner can request a replacement, but it will be a carbon copy of the original. If the originally contained lienholder information, the replacement will as well. However, the lienholder's signature releasing the lien will be missing because the Motor Vehicle Division never received the signature. The owner must then contact the lender to have the lien released. The applicant may request a lien release form from the Tax Commissioner's office before applying for a duplicate title. After completing it with the lienholder, the owner submits it to the Tax Commissioner's office when applying for a duplicate title. The lienholder will then be removed from the new title. That may not be a problem for most people. It could be for some. How? It may be a problem if the lender is no longer in business or if an individual has moved or died. In such cases, the Tax Commissioner's office can explain the owner's steps for the lienholder to be removed from the title.

FAQs About Car Lien In Georgia

In Georgia, how do I remove a lienholder from my car title?

• To electronically release the title, contact the lender who holds the Lien. The Department will not release an electronically recorded lien or security interest.

In Georgia, how long does a lien remain on a car title?

• A lien is currently valid in Georgia for twelve (12) months from the date the claim became due, which is the last date labor, services, or materials were rendered to the project.

In Georgia, how do I file a lien release?

• A Release form includes the following information:
  • The name and address of the lien claimant;
  • The name and address of the property owner;
  • The address of the subject property;
  • The date the lien was recorded;
  • The book number, page number, and instrument number as indexed by the county; and
  • The reason for cancellation.

Is it necessary to notarize lien releases?

• Do lien waivers need to be notarized, or should they be notarized? The answer is almost always no, but if you're in charge of payments coming in and out of a construction company, you're likely to encounter lien waiver documents that "require" notarization daily.

In Georgia, how do you record a lien and security interest?

• Recording a Lien and Security Interest on a Title To record a Lien or Security Interest against a vehicle when a Georgia title is required:
  • Completed and signed Form MV-1 Title/Tag Application Original valid title
  • The manufacturer's certificate of origin was issued in the vehicle owner's name.
  • Original valid title or manufacturer's certificate of origin issued in the vehicle owner's name

How do I file a security interest lien on a vehicle?

• Original valid title or manufacturer's certificate of origin issued in the vehicle owner's name. Under the Universal Commercial Code, records the lien of security interest with the Clerk of Superior Court's office in the county where the vehicle owner resides.