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Removing a Lien in Vermont

When you take a loan out on your car, there will be a lien placed on your car title. Legally, the car will not be considered your property until the lien is removed. You can initiate the process to have your lien released at the Vermont Department of Motor Vehicles (DMV) once your car loan has been paid in full.

What Is a Car Lien?

A lien is a legal document that gives a property owner, service provider, or lender the chance to pursue legal recourse if they don't receive full payment for a bill or a loan.

The lien on your vehicle's title will give your lienholder the opportunity to repossess your car in Vermont if you default on your auto loan or cease making payments.

Before your lienholder can go through with this action, you must receive notice from them or the VT DMV.

Lienholders in Vermont

A lienholder is typically the person or company offering either services or an advance of money in a transaction. The lienholder on a vehicle's title is usually a financial institution like a bank, credit union, or other lender.

In Vermont, your lienholder is the individual or business responsible for issuing your car loan. They will likely be in possession of your title until you've completed making payments on your auto loan.

Removing a Lien in Vermont

Once you've successfully paid off your auto loan, you can have the lien removed from your Vermont car title.

To do so, you must initiate this process by:

  • Sending a Release of Lien (Form TA-VT-08) to your lienholder.
    • Your lienholder should:
      • Fill out the appropriate information
      • Sign your title over to you
      • Send both documents back to you.
  • Submitting all paperwork, along with a Duplicate Title Application (Form TA-VT-04) to your local Vermont Department of Motor Vehicles office to obtain a clear title.

You will be charged $35 for the corrected title.

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