Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney regarding your specific situation.
Detailed Answer: Verifying Satisfaction of a Vehicle Loan in Kansas
When you serve as an administrator of an estate in Kansas, confirming that an outstanding vehicle loan is fully paid is critical before transferring or selling the vehicle. Follow these steps to verify satisfaction under Kansas law:
- Obtain a payoff statement. Request a written payoff statement from the lender showing the exact balance due as of a specific payoff date. Ensure it reflects a zero balance once payment is made.
- Make the payment with traceable funds. Pay by certified funds (e.g., cashier’s check) or wire transfer. Retain proof of payment, such as a bank receipt or cancelled check.
- Secure a lien release under K.S.A. 8-135. Kansas law requires a lienholder, within 30 days of payment, to surrender the certificate of title or file a release of lien with the Division of Vehicles. Ask the lender for a stamped title showing the lien release or obtain a separate lien release document.(K.S.A. 8-135)
- Confirm UCC termination if applicable. If the loan was secured by a UCC-1 financing statement, search the Kansas Secretary of State’s UCC records to verify a termination statement has been filed under K.S.A. 84-9-513.(K.S.A. 84-9-513)
- Request a clear title. Submit the lien release or UCC termination statement to the Kansas Division of Vehicles. They will issue a title free of liens in the estate’s name or the transferee’s name.
- Document everything in the probate file. Keep copies of the payoff statement, proof of payment, lien release, UCC termination, and clear title to demonstrate full satisfaction to the court and interested parties.
Helpful Hints
- Verify the lender’s contact and mailing information to ensure authenticity of statements and releases.
- Use certified mail or a courier with tracking when sending funds or document requests.
- If you don’t receive a lien release or new title within 30 days, follow up immediately.
- Check both county tag office records and the Division of Vehicles database for lien status.
- Consult a probate attorney if you face discrepancies in payoff amounts or delays in lien release.
- Maintain all communications in writing for your estate records and court reporting.