Detailed Answer
When an estate administrator in Utah needs to confirm that a vehicle loan is fully paid, follow these steps to verify satisfaction of the secured obligation:
1. Obtain a Written Payoff Statement
Contact the lender and request a written payoff statement. This document shows the exact payoff amount as of a specific date and confirms receipt of all payments. Keep the statement for your records.
2. Secure a Lien Release or Termination Statement
After you pay off the loan, the lender must issue a lien release. For vehicles, Utah law treats the certificate of title as the security instrument. Under Utah Code §41-1a-207, lenders remove liens on the title when they receive full payment. If the lender instead recorded a UCC-1 financing statement, ask for a UCC-3 termination statement under Utah Code §70A-9a-513 (Uniform Commercial Code §9-513).
3. Check the Utah Division of Motor Vehicles Title Record
Use the Utah DMV online title search or visit a DMV office to review the vehicle’s title record. Confirm that no lienholder appears and that the title lists you (or the estate) as sole owner. You can order an abstract of title for an official history.
4. Request an Updated Certificate of Title
Once the lien release is processed, you can apply for a clean title. Submit the lien release and existing title to the Utah DMV. The new certificate will list no lienholders, proving the loan is fully satisfied.
5. Retain Copies and Document Everything
Keep copies of the payoff statement, lien release, title applications, and the updated title. Store these documents with the estate’s records to support any future inquiries or audits.
Disclaimer: This article is for educational purposes only. It does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.
Helpful Hints
- Verify payoff statements cover all interest and fees through the payoff date.
- Confirm the lender files the lien release with the Utah DMV or county recorder.
- Use the VIN to check title status online at dmv.utah.gov.
- Order an abstract of title to see any historical liens or encumbrances.
- Keep a paper and digital copy of every document related to the payoff.