Detailed Answer
When settling an estate, the administrator must ensure that any outstanding vehicle loan has been fully paid and its lien removed. Follow these steps under Maryland law:
- Obtain a written payoff statement: Request a payoff statement from the lender that confirms the exact payoff amount, payment date, and account finalization.
- Secure a lien release: Under Md. Transp. Code Ann. § 13-819 (link), the secured party must surrender its security interest on the certificate of title within 30 days after discharge. Ask the lender to send Form VR-005 to the Maryland Motor Vehicle Administration (MVA) and provide you with a copy.
- Confirm via Maryland MVA title record: Through the Maryland MVA online portal (mva.maryland.gov), order a certified copy of the vehicle’s title. If no lienholder appears, the lien has been released.
- Search UCC termination filings: Under Md. Comm. Law § 9-513 (link), secured parties must file a termination statement within 20 days after payoff. Use the State Department of Assessments and Taxation (SDAT) UCC database to verify no active UCC-1 financing statement remains.
- Retain documented proof: Keep copies of the payoff statement, lien release, certified title, and any UCC termination report with the estate’s records.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for advice tailored to your situation.
Helpful Hints
- Mark key deadlines: Maryland law gives lenders 30 days to remove a lien after discharge.
- Use the MVA’s online services for faster title and lien searches.
- If the lien still appears after 30 days, send a written demand to the lender referencing Md. Transp. Code Ann. § 13-819.
- Maintain a clear audit trail by saving all correspondence with the lender and the MVA.