Alabama Release of Lien for Car
Description
How to fill out Release Of Lien For Car?
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FAQ
Both parties must fill out the transfer of ownership on the title and fill out the Application for Replacement Title. Bring the Application and the original title to the County Office where the new owner resides along with: Proof of Alabama auto insurance. Driver's license of the new owner.
Once you pay off your loan, your lender will send you an official release of lien letter. Take that letter to your state's Department of Motor Vehicles office (or, in some cases, to your local city or town clerk's office), and they'll issue you a car title in your name.
The Alabama Release of Lien Form is used to cancel a lien that has already been filed. It's most often used to release a lien claim after a lien claimant receives payment. Alabama law requires that a lien cancellation is filed within 30 days after the lien is satisfied.
A vehicle's ownership can be transferred without a title, but of course, the process is less of a hassle if you have the title. To transfer ownership of a car without a title in Alabama, you need to apply for a duplicate title by completing a Duplicate Title Request Form ( Form MVT 12-1).
In order to register a vehicle subject to the Alabama title law, a title application must be completed before a registration can be processed. When a certificate of title is not required, only a registration is issued.
The titled owner(s) or recorded lienholder can apply for a replacement title online by using the Public Title Portal. Once the title application is complete, it can be electronically uploaded and submitted for payment. The application fee is $15.00 and is non-refundable.
If there are any liens shown on the front of the title that are not released, you will need to have it signed off by the lienholder (Or obtain an original release document from the lien holder). On the back of the title you will fill out the upper part under the heading ASSIGNMENT OF TITLE BY REGISTERED OWNER.
If you still have a loan on the vehicle, you will need to pay off the balance to sell it. If you can't pay the loan, you will need to submit a lien release form to the Motor Vehicle Division at the Department of Revenue in Alabama.
