Detailed Answer
When an estate administrator handles a vehicle with an outstanding loan, Washington law requires confirmation that the debt is fully paid before transferring or selling the vehicle. Vehicle liens in Washington fall under Article 9 of the Uniform Commercial Code (UCC) and the Department of Licensing’s title rules. Follow these steps to verify full satisfaction:
- Obtain a payoff statement. Contact the lender and request a written payoff statement. It must itemize the total amount due, the date your final payment clears, and confirm no remaining balance. See RCW 62A.9-505 for secured obligation definitions and RCW 62A.9-513 on termination of financing statements.
- Secure a lien release on the title. After final payment, ask the lender to send a lien release or satisfaction statement. Under RCW 46.12.070, the lienholder must note the release on the vehicle’s certificate of title or provide you with a release slip.
- Confirm UCC termination. Search the Washington Secretary of State’s UCC database by Vehicle Identification Number (VIN). Ensure the lender’s financing statement shows a termination date. Lenders must file a termination within 20 days of satisfaction (RCW 62A.9-509).
- Check DOL title records. Use the Department of Licensing’s eTitle system or a certified title request. Verify the title no longer lists the lender as a lienholder. A clear title confirms no outstanding interests.
- Retain records. Keep copies of payoff statements, lien releases, UCC termination filings, and clear title documents. These records protect the estate against future claims.
Helpful Hints
- Ask the lender for a hard-copy payoff letter with an authorized signature.
- Request a certified copy of the vehicle title from the DOL for proof.
- Follow up with the lender if you don’t receive a lien release within 30 days of final payment.
- Use the SOS online UCC search to cross-check lien termination.
- Store all documents in a secure, labeled file for the estate’s records.
Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.