Prior to selling a vehicle, all lienholders must have released their interest in the vehicle.
Releasing a Lien
If the lienholder is a financial institution or dealer
To remove the lien from your vehicle’s certificate of title, the lienholder must sign off in the proper lien release section on the certificate of title or provide a letter of lien release. If the financial institution or dealer is no longer in business, contact your local court to obtain a court order directing the BMV to release the lien.
If the lienholder is an individual
To remove the lien from your vehicle’s certificate of title, the lienholder must release the lien in one of the ways:
- The individual lienholder must sign off in the proper lien release section on the certificate of title;
- The vehicle owner must obtain a lien release letter; or
- The vehicle owner must obtain a general Affidavit – State Form 37964 that is signed by the individual lienholder.