1. Satisfy the lien: Before the title can be transferred, the outstanding balance on the loan must be paid off. This can be done by the current owner or the new owner.
2. Obtain a lien release: Once the loan is paid off, the lienholder will issue a lien release. This document states that the lien has been satisfied and that the car is free and clear of any encumbrances.
3. Transfer the title: With the lien release in hand, the car title can be transferred to the new owner. In some states, the transfer of the title may require a visit to the local Department of Motor Vehicles (DMV).
It is important to note that some lienholders may require the new owner to obtain their own insurance policy before they will issue a lien release. Additionally, there may be fees associated with transferring the title and registering the car in the new owner's name.
For these reasons, it is always a good idea to communicate with the lienholder and the DMV before attempting to transfer ownership of a car with a lien. By doing so, you can avoid any potential delays or complications in the process.
