Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When settling an estate or managing business assets, an administrator must confirm that any outstanding vehicle loan is paid in full and that the lien is released. Under West Virginia law, a lienholder must file a lien release with the Division of Motor Vehicles (DMV) and issue a certificate evidencing satisfaction of the debt. The administrator can verify full loan satisfaction by following these steps:
- Obtain a written lien release from the lender. Request a letter on official letterhead specifying the vehicle identification number (VIN), loan account number and a statement that the loan is paid in full.
- Review the updated Certificate of Title. After loan payoff, the lender must submit the lien release to the West Virginia DMV. The DMV will issue a new title without liens. You can confirm the process under W. Va. Code §17A-4-8.
- Search UCC termination records. If the lender filed a financing statement under the Uniform Commercial Code, check for a termination statement in the West Virginia Secretary of State’s UCC database. See W. Va. Code §46-9-513 regarding authorized discharge of a financing statement.
- Confirm with the DMV. Contact the DMV’s titling office or use the DMV’s online vehicle information service to verify that no active liens remain on the vehicle.
If any step fails to yield proof of lien release, follow up with the lender and maintain copies of all correspondence and documents for the estate or business records.
Helpful Hints
- Keep copies of all receipts, letters and title documents in a single file.
- Allow 7–10 business days for the DMV to process lien releases.
- Verify that the VIN on the DMV title matches the vehicle.
- Use certified mail when requesting lien releases to track delivery.
- Consult an attorney if the lender refuses to issue a release or if title issues arise.