Lien Sale documents are supplied to buyers in order to facilitate registration with your state’s DMV.
The most common documentation types are described below:
|Lien (Lien Sale or Lien Papers)
A "lien" refers to a legal claim or interest that a third party has on the vehicle due to an outstanding debt or financial obligation. The entity that holds the lien, often a lender or financial institution, has a legal right to the vehicle until the borrower fulfills their financial obligations. This lien is typically recorded on the vehicle's title, indicating that it is encumbered by a debt.
Here are key points to understand about a lien in the context of a car auction:
In California, a long lien is a lien on a vehicle that is valued at more than $4,001 and above. Storage facilities are required to file a long lien regardless of the value of the vehicle.
This may differ depending on state. It is recommended that you request for more detailed information from the local DMV before making a purchase.
A "storage lien title" typically arises when a vehicle is left unclaimed or abandoned on someone else's property, such as a tow yard or storage facility.
In many cases, the property owner, who may have towed or impounded the vehicle, may place a lien on the vehicle to cover the costs of towing, storage, and any other related fees. If the owner of the vehicle does not reclaim it within a specified period and settle the outstanding charges, the property owner may gain legal rights to sell or dispose of the vehicle to recover their costs.
A "mechanic's lien title" in the context of a car auction typically arises when a vehicle owner fails to pay for repairs or services provided by a mechanic or an auto repair shop. In such cases, the mechanic or repair shop may place a mechanic's lien on the vehicle as a way to secure payment for the work performed. If the vehicle owner does not settle the outstanding charges within a specified period, the mechanic or repair shop may gain the legal right to sell the vehicle to recover their costs.
This may require a mechanic inspection in order to register the vehicle. Please check your local DMV for specific details.
|Title (Pink Slip)
|The certificate of title for a vehicle (also known as a car title, automobile title, or pink slip) is a legal form, establishing a person or business as the legal owner of a vehicle. Vehicle titles in the U.S. are commonly issued by the Secretary of State in the state the vehicle was purchased by the Department of Motor Vehicles (DMV).
A "junk title" refers to a vehicle title issued by the relevant state authorities that designates the vehicle as non-roadworthy or beyond economical repair due to damage, age, or other reasons. In most cases, a vehicle receives a junk title when it has been declared a total loss by an insurance company. Here are key points about a junk title:
|When a salvage car is repaired, it can get a rebuilt title, meaning that it is now safe and legal to drive on the road. This notifies the buyer of the previous history of the vehicle. In some states, to receive a rebuilt title, the vehicle must pass a series of tests to ensure it is safe to drive.
|A "salvage title" is a form of vehicle title branding, which notes that the vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it. The criteria for determining when a salvage title is issued differ considerably by each state, province or territory.
|A "rebuilt salvage title" refers to a title status assigned to a vehicle that was previously declared a total loss (salvage) but has undergone repairs and, in some cases, a thorough inspection to make it roadworthy again. The term "rebuilt" indicates that the vehicle has been reconstructed or rebuilt after sustaining significant damage, and it has met certain safety and roadworthiness standards as determined by the relevant authorities.