Removing a Lien in Arkansas

If you financed your car and are still paying off car loans, there's most likely a lien on your car title. In order to transfer it back to your name, you will have to get the lien removed. You can begin this process once you've completed your car loan payments.

What Is a Lien?

A lien is essentially a form of collateral. It's a way for a property owner to ensure that he or she will receive full payment for their property, and it lasts during the period of time that the property is being paid off by the buyer.

In the case of a car title, the lien gives the lienholder the right to take back the car should the buyer default on their payments or stop paying all together.

NOTE: Liens against car titles are most commonly associated with auto loans; however, there are other less common types of vehicle liens (ex. mechanic's lien, court liens).

Who Is a Lienholder?

A lienholder is the person or entity responsible for issuing the car loan. In many cases, the lienholder of a car is a bank or financial firm.

During the period of time that the car is being paid off, the lienholder will be in possession of the title.

Removing a Lien from Your Arkansas Title

Paying off your loan for your vehicle means you can remove lien information from your AR title. More often than not, your lienholder will handle this process for you.

Your lienholder will likely send you a completed Official Release of Lien (Form 10-315). To apply for a lien-free title in Arkansas, visit your local AR State Revenue Office and:

• Bring the lien release form provided by the lienholder.
• Provide any of the following:
  
  • Vehicle registration certificate.
  • License plate number.
  • Title number.
    OR
  • Vehicle identification number (VIN).
• Pay the $10 replacement title fee.

The Arkansas Office of Motor Vehicle will seek verification of the lien release from the lienholder. Once verified, your title will be sent to you. *

There is a minimum of 3 weeks processing time to issue the new title.

Your lienholder should begin the process once your car loans are paid off. However, if you've paid off your car loan and the process doesn't appear to be underway, you'll need to contact your lienholder or local Arkansas OMV office.

* NOTE: If the lienholder does not respond within 10 business days to dispute the lien release, the Arkansas OMV will issue your title.