Removing a Lien in Nevada
When you take a loan out to pay for your car, there may be a lien placed on your car title. In Nevada, once you've made full payment on your loan, you can have the lien released through the Nevada Department of Motor Vehicles and resume ownership of your car title.
What Is a Vehicle Title Lien?
A lien is a legal document obtained by a property owner or service provider, ensuring them compensation in the event that they do not receive full payment for what they have sold. In Nevada, a lien on a car title gives the lienholder the legal right to repossess the vehicle, should you default on your loan.
Types of Liens in Nevada
While car title liens are common in Nevada, the state will allow different liens to be placed on your vehicle, including:
- Mechanic's lien—Ensures payment for mechanical work done to a car.
- Storage lien—Ensures payments for car towing or storage.
In either case, the car may be sold at a public auction to settle the debt. The car owner must be notified before the auction takes place.
Who Is a Nevada Lienholder?
A lienholder is typically the business or individual at financial risk should a loan or bill go unpaid. In the case of your car title, the lienholder is the person or company responsible for issuing the car loan – usually a bank, credit union, or other lender.
The title is usually in possession of the lienholder throughout the life of the loan, and the document is typically placed in the lienholder's name.
Remove a Lien from Your NV Title
There are several ways to release a lien on a Nevada car title, depending on when and how your title was issued.
Removing an Electronic Title Lien
Since September 2015, the Nevada DMV has been implementing an electronic lien title (ELT) system. All car titles issued by the state are expected to be electronic by September 2017.
If your lienholder is a participant in the Nevada ELT program, he or she will notify the Department of Motor Vehicles once the loan has been satisfied. The NV DMV will then print and mail the new title to you, within about 8 weeks.
Removing a Lien from a Paper Title
To have a lien released from your paper title:
- Bring the signed vehicle title to your local DMV office.
- The lienholder is responsible for signing off on the title and mailing it to you.
- Complete the “Lien" section on the back of the title.
- Write “None" in the space for “new lienholder."
- Pay the $21 fee for a new title.
NOTE: You can remove the lien from your car title in Nevada as long as your car is registered in the state. It does not matter which state issued your car title.
You can also mail the title to the DMV, accompanied by a letter that includes:
- Your full name.
- A daytime telephone contact number.
- Your Nevada license plate number.
The information should be mailed to:
Department of Motor Vehicles
555 Wright Way
Carson City, NV 89711
Your new title should be issued and mailed to you within 8 weeks.
If your lienholder does not have the title, they must fill out a Lien Release (Form VP186) and mail it to you. You will then have to submit the form to your local Nevada DMV office, along with an application for a duplicate title.
If you decide to buy a car you have been leasing, the Nevada dealer will submit the title and the Dealer's Report of Sale (obtained by the dealer) to the DMV. The new lienholder will receive the new title from the state. If you are the new lienholder, you should receive your title in approximately 8 weeks.