Detailed Answer
When administering an estate in Massachusetts, an administrator must ensure that any outstanding vehicle loan is fully satisfied before transferring or distributing the vehicle. Follow these steps to verify complete payment:
1. Obtain a Payoff Statement from the Lender
Contact the lender and request a formal payoff statement. This document lists the exact amount needed to satisfy the loan, including principal, accrued interest, and any fees. Payoff statements typically expire after a set period (e.g., 10–15 days), so confirm the effective date.
2. Make Payment According to the Statement
Submit payment in the form specified by the lender (e.g., certified check, wire transfer) before the expiration date on the payoff statement. Keep proof of payment, such as bank records or receipts, for your estate files.
3. Secure a Lien Release Document
After receiving payment, the lender must provide a lien release or satisfaction of security interest. Under Mass. Gen. Laws ch. 183, §64J, a secured party has 30 days to send a release of interest in the certificate of title once the debt is satisfied. Ensure you receive this document in writing.
4. Confirm with the Massachusetts Registry of Motor Vehicles (RMV)
File the lien release with the RMV to update the vehicle’s title. Use RMV Form T-280 (Application for Duplicate Title) if needed. You can also check the vehicle’s lien status online via the RMV’s title inquiry service to verify the lien removal: https://www.mass.gov/info-details/massachusetts-registry-of-motor-vehicles-titles-and-registrations.
5. Maintain Complete Records
Retain copies of the payoff statement, proof of payment, lien release, and any correspondence with the lender and RMV. These documents demonstrate that the vehicle loan was fully satisfied and protect you in case of future disputes.
Statutory References
- Mass. Gen. Laws ch. 183, §64J: Release of security interest in the certificate of title. View statute
- Mass. Gen. Laws ch. 183, §70: Issuance of certificate of title. View statute
Disclaimer: This information is for educational purposes and does not constitute legal advice. Consult a licensed attorney for guidance tailored to your situation.
Helpful Hints
- Request payoff statements in writing and confirm expiration dates.
- Use traceable payment methods (e.g., wire transfer, certified check).
- Verify lien release recordings with the RMV to avoid title issues.
- Keep an organized file of all documents related to the loan payoff.
- Consult an attorney if the lender delays issuing a lien release beyond 30 days.