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Lien on title?

dukebound85

dukebound85

macrumors Core
Original poster
Jul 17, 2005
19,218
4,342
5045 feet above sea level
So I am about to buy a bike and there was a lien on the title. However, there is a signed document saying the lien is no longer held by the original lieb placer

Is it safe to buy this bike?
 
This page seems to contain useful information relevant to New York, which appears to handle titles differently than most other states.

In most states, the lienholder holds the vehicle's title until you've paid it off, and then they send you the title. In NY it looks like the purchaser gets the title immediately, and the lienholder is marked on it. When the loan is paid off, the owner gets a certificate of release of the lien, which he should be able to provide along with the title to anybody he's selling the vehicle to.

I only skimmed the faq in that page, so it wasn't clear to me how one sells a vehicle one hasn't finished paying for yet. It's been many years since I did that in any state, so I don't know. I do know if you do it wrong, then the seller can actually walk away with your money and leave you owing for his loan. Such a sale can definitely be done, but don't automatically just trust that the seller knows how to do it.
 
Generally, you need to take the title (and the notice of release of lien if available) to the DMV, and they cut a new title showing the new owner and no lien. Just make sure any documentation is available, including sales receipt/transfer of title to you.
 
Gelfin said:
This page seems to contain useful information relevant to New York, which appears to handle titles differently than most other states.

In most states, the lienholder holds the vehicle's title until you've paid it off, and then they send you the title. In NY it looks like the purchaser gets the title immediately, and the lienholder is marked on it. When the loan is paid off, the owner gets a certificate of release of the lien, which he should be able to provide along with the title to anybody he's selling the vehicle to.

I only skimmed the faq in that page, so it wasn't clear to me how one sells a vehicle one hasn't finished paying for yet. It's been many years since I did that in any state, so I don't know. I do know if you do it wrong, then the seller can actually walk away with your money and leave you owing for his loan. Such a sale can definitely be done, but don't automatically just trust that the seller knows how to do it.
Click to expand...

yes, he did say he had the release of lien certificate. i searched the dmv with the vin and no liens popped up so i should be good right?

JNB said:
Generally, you need to take the title (and the notice of release of lien if available) to the DMV, and they cut a new title showing the new owner and no lien. Just make sure any documentation is available, including sales receipt/transfer of title to you.
Click to expand...

i plan of going to the dmv with the seller and once its cleanly transferred, i pay him
 
The seller will still need to go down to the DMV and wait in line for the clean title.

If you buy this, you might find that it will take 6 months of trips to the DMV and they may even force you to pay for a bonded title (aka, they don't believe you).

A simple notorized release from the original lienholder usually works for the current owner, but one mistake on the paperwork, and it'll cost dollars to get a clean title -- and it really isn't clean, since it'll be a bonded title which can cost you now and later if the lienholder shows up.
 
Sun Baked said:
The seller will still need to go down to the DMV and wait in line for the clean title.

If you buy this, you might find that it will take 6 months of trips to the DMV and they may even force you to pay for a bonded title (aka, they don't believe you).

A simple notorized release from the original lienholder usually works for the current owner, but one mistake on the paperwork, and it'll cost dollars to get a clean title -- and it really isn't clean, since it'll be a bonded title which can cost you now and later if the lienholder shows up.
Click to expand...

this makes it sound as if as long as i have the release and title, it should be good. I just want to make positvely sure before I pay him though
Q. How do I Remove a Lien from my NY Title and Get a "Clear" Title?

A. When you have paid your loan in full, the lienholder must promptly send you a proof of lien satisfaction called a "lien release." This is usually a Notice of Recorded Lien (MV-901), marked and endorsed by the lender proving payment. It might also be a letter on the lender's stationery identifying the borrower's name, the vehicle by make, year and vehicle identification number, certifying the date of full payment and release of the security interest, and signed by an officer of the lending institution. Keep this lien release. You will need to give it to a buyer, along with your title certificate, when you transfer ownership. The DMV will accept only the signed, original release.
Click to expand...

from the link provided by Gelfin
http://www.nydmv.state.ny.us/broch/c19.htm
 
dukebound85 said:
this makes it sound as if as long as i have the release and title, it should be good. I just want to make positvely sure before I pay him though

from the link provided by Gelfin
http://www.nydmv.state.ny.us/broch/c19.htm
Click to expand...

If he hasn't done it, it is one of two things...

1. he tried and couldn't

2. they are lazier than crap.

I owned my truck, and even with the lien release from the bank it took me 6 months of waiting for releases and 15 trips to the DMV to get a clean title ... and they wanted me to get a bonded title instead.

Really, it isn't worth the risk, when the current owner can just go down and clean the title and then sell you the vehicle in the clear.

I've had tortuous problems on two vehicles, one with notarized paperwork in my name that wouldn't clear, and another that basically never cleared.

Don't take the risk. It won't be fun if you have to fire off certified mail to the old lienholder and post notices, and/or end up with a bonded title.

Remember, it is the DMV, they like making people squirm.
 
Sun Baked said:
If he hasn't done it, it is one of two things...

1. he tried and couldn't

2. they are lazier than crap.

I owned my truck, and even with the lien release from the bank it took me 6 months of waiting for releases and 15 trips to the DMV to get a clean title ... and they wanted me to get a bonded title instead.

Really, it isn't worth the risk, when the current owner can just go down and clean the title and then sell you the vehicle in the clear.

I've had tortuous problems on two vehicles, one with notarized paperwork in my name that wouldn't clear, and another that basically never cleared.

Don't take the risk. It won't be fun if you have to fire off certified mail to the old lienholder and post notices, and/or end up with a bonded title.

Remember, it is the DMV, they like making people squirm.
Click to expand...

even if i checked the vin with the dmv and it shows there is no lien at the moment?

i used this site
http://www.nysdmv.com/titlestat/default.html

as you can tell, i really want this and i hate hearing bad news lol

for instance, here is my car and then bike in question
 

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