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Disclaimer: This information is provided for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.

Detailed Answer

As an estate administrator or personal representative in North Dakota, you must confirm that a payment has fully satisfied an outstanding vehicle loan before transferring or disposing of the vehicle. Under North Dakota law, follow these steps:

1. Obtain a Payoff Statement: Contact the lender and request a payoff statement that shows the exact amount required to satisfy the loan as of a specific date. This document lists principal, interest, fees, and the payoff deadline.
2. Make or Verify Payment: Ensure payment in the exact amount and form specified by the lender (e.g., certified check, wire transfer). Keep proof of payment such as bank records or a payment receipt.
3. Secure a Release of Lien: After payment, the lender must provide a lien release or satisfaction document. North Dakota law requires lienholders to file a release with the Department of Transportation. See NDCC §39-04-26 (Release of Lien).
4. Check the Certificate of Title: Retrieve the vehicle’s title from the lender or Department of Transportation. Verify the lien release is recorded and the title lists you (or the estate) as the sole owner without any lien notation. NDCC §39-04-13 governs surrender of certificate by lienholder (Surrender of Title upon Satisfaction).
5. Confirm with NDDOT: You can request a lien search or duplicate title application from the North Dakota Department of Transportation (NDDOT). Confirm the lender’s lien is no longer active in their records.
6. Retain Documentation: Keep copies of the payoff statement, payment confirmation, lien release, and updated title. These records prove the loan is fully satisfied and protect against future claims.

Relevant North Dakota Statutes

• NDCC §39-04-26 – Release of Lien: https://www.legis.nd.gov/cencode/t39c04.html#39-04-26
• NDCC §39-04-13 – Surrender of Title upon Satisfaction: https://www.legis.nd.gov/cencode/t39c04.html#39-04-13

Helpful Hints

• Request written payoff statements that include expiration dates.
• Use certified mail or tracked courier services when sending payments or documents.
• Follow up with the lender to confirm receipt and lien release.
• Verify NDDOT records online or via formal lien search.
• Consult an attorney if lender delays providing lien release.