2016 GNYADA Membership Directory

HOT TOPICS

2016

MEMBERSHIP

DIRECTORY

165

STEP BY STEP GUIDE TO LIEN RELEASES

The Department of Motor Vehicles (DMV) has published regulations that allow dealers to obtain a “clean”

title (that is, a “lien-free” title) by applying directly to DMV. Dealers had long complained that some lenders

were not providing releases in a timely fashion, and GNYADA proposed and passed legislation to address that

problem.

If lenders do not immediately provide releases, dealers no longer have towaitmonths for relief. Dealers can now

apply to DMV quickly and easily to remove a lien on a title and to obtain a lien-free title. GNYADA has prepared

a set of step-by-step instructions, sample forms and letters, and a checklist for dealers. Those instructions and

forms are available on GNYADA’s website at

What you will need to submit to DMV for a lien-free title

Dealer will be able to pay off the outstanding loan amount, provide a notice to the lender that the dealer will

seek a lien-free title, and submit to DMV proof of payment and the notice it sent to the lender along with an

application for new or duplicate title. DMV will then provide a lien-free title within 15 days.

This process is not required for all transactions. It is intended to provide relief when a lender has failed to

issue a lien release.

sample