How To Start a Lien Sale for a Vehicle Valued at $4,000 or Less (Civil Code §3072)

General Information

If a person has repaired, furnished supplies/materials for, or towed or stored a vehicle and has not been paid for the services rendered, that person has a lien against the vehicle. The lien may be satisfied by getting a court judgment or by selling the vehicle through a lien sale process outlined in the California Civil Code. To conduct a lien sale, the person/lienholder must have possession of the vehicle.

NOTE: A salvage pool cannot conduct a lien sale to obtain title to a vehicle. The lien arises (becomes effective) at the time the registered owner is presented with a written statement of charges for completed work or services. However, if possession is the result of a public agency or private property impound, the lien arises when the vehicle is transported (towed).

The legal owner must be notified before the service may be performed if the amount of any repairs or service exceeds $750 or the storage charges exceed $400 ($500 for vehicles valued over $4,000).

Before conducting a lien sale, the lienholder must determine the value of the vehicle. If the vehicle’s value is greater than $4,000, DMV notifies all interested parties. (See “How To: Conduct a Lien Sale for a Vehicle Stored at a Self-Service Storage Facility or Valued Over $4,000.”) If the vehicle’s value is $4,000 or less (Civil Code §3072), the registered and legal owners of record will be notified by the party conducting the lien. You can call (916)-657-7617 between the hours of 8 a.m. and 5 p.m. if you have questions regarding lien sales.

First, determine the current market value of the vehicle. If $4,000 or less, follow the steps below:

These Lien Sale Procedures Cannot Be Used for a:

• Vehicle valued over $4,000.
• Lien incurred at a self-service storage facility.
• Vessel and/or a vessel and trailer combination.
• Mobile home as defined in California Vehicle Code §396 as a trailer coach more than 102 inches wide or 40 feet long.

Step 1. Finding the Vehicle's Owner

Complete a Registration Information Request for Lien Sale (INF 1126) form and submit it to the Department of Motor Vehicles (DMV). The DMV will provide a vehicle history record with the registered and legal owner(s) of record and known interested parties. Owners identified from incomplete transfers are included as interested parties.

Improperly identified vehicles can invalidate a lien sale and require the lienholder to reapply for a lien sale even if the vehicle has been sold.

Step 2. Starting the Sale Process

At least 31 days, but no more than 41 days before the sale date (not counting the day the notice is mailed), send a Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less (REG 668) by certified mail (return receipt requested) or U.S. Postal Service Certificate of Mailing to:

• Registered owner(s);
• Legal owner(s);
• Any known interested parties;
• DMV (must be certified mail to the department).

Mail the REG 668 notice to each party listed above and enclose a pre-addressed return envelope to the DMV Lien Sale address listed on the REG 668 (see instructions on the REG 668).

If the DMV has no record of this vehicle, you need only send a REG 668 to interested parties known to you and a REG 668 to the DMV at the following address:

Department of Motor Vehicles
Lien Sales Unit
P.O. Box 932317
Sacramento, CA 94232-3170

Step 3. Posting the Sale Notice

At least 10 days prior to, and including the sale date, a REG 668 must be posted in a conspicuous place at your business office. If the sale occurs at a place other than your business office, a REG 668 must be posted at the sale site. When posting the REG 668 fold the document so the registered owner, legal owner and interested party addresses are not visible.

Step 4. Opposition to the Lien Sale

Any person who has an interest in the vehicle may oppose the sale. The DMV will notify you by mail if your sale is canceled. To continue the lien sale, submit one of the following to the DMV:

• a release of interest from the opposer, or,
• a copy of the court judgment papers, or
• if unable to serve the court papers, complete and sign an Application to Continue After Unsuccessful Court Service (REG 659) form stating that fact.

After DMV receives the documents, a letter will be sent to you allowing the sale to continue. Successful service results in return receipt when sent by certified mail, or receipt when presented in person by a marshal, sheriff or certified process server.

Step 5. The Day of Lien Sale

On the sale date, the vehicle must be available for inspection at least one hour prior to the sale. A lien sale is a public auction. Anyone may appear and bid. Sealed bids are not allowed.

Step 6A. If No One Places a Qualifying Bid

Complete the Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) showing you as both the buyer and seller.

Remove and destroy the license plates on the vehicle. Within five days, submit a Notice of Transfer and Release of Liability to DMV.

If you sell the vehicle later, you are required to give the new buyer a bill of sale with the lien sale documents.

Step 6B. If You Have a Buyer

Complete the Certification of Lien Sale for Vehicle Valued $4000 or Less (REG 168A) and give it to the buyer along with the DMV vehicle record history information (Step #1) and the postal receipts or the U.S. Postal Service Certificate of Mailing and Posting (Step #2).

If excess money is received from the sale of the vehicle, make a copy of the REG 168A and mail the form with the excess money to the Lien Sales Unit using the address in Step #2.

Remove and destroy the license plates on the vehicle. Within five days, submit a Notice of Release of Liability to DMV.

Registering the Vehicle After the Lien Sale

The following are required to register a vehicle sold at a lien sale:

• Application for Registration (REG 343) completed and signed by the new owner.
• Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) completed by the lienholder with the DMV printout and postal receipts attached.
• Vehicle/Vessel Transfer Form (REG 262), if applicable.
• Smog Certification, if applicable.
• Applicable registration and/or transfer fees and use tax.
• Verification of Vehicle (REG 31), if there is no record of California registration.

Fees

If the vehicle registration expired while in your possession and you are a dealer, lessor-retailer, keeper of a garage, or operator of a towing service, the buyer has 20 days from the lien sale purchase date to pay registration fees without penalty or pay a transfer fee and a planned non-operation fee. Otherwise, a planned non-operation must be filed prior to the vehicle expiration date, or penalty fees are due.

If the vehicle came into your possession with an expired registration, the buyer must pay the registration fees and penalties.

Forms

The required forms listed above are available in amounts of 300 or less by writing the Lien Sales Unit at the address in Step #2 or for larger quantities of forms write or fax the DMV warehouse at:

Department of Motor Vehicles
Materials Management Section
Inventory Control Operations
4201 Sierra Point Drive Sacramento, CA 95834-1998

FAX Number: (916) 928-7900

DMV will process your request if the forms are in stock. If the forms are not available you will be notified. You can call (916) 928-7901 if you have a question regarding your order. A token supply of forms are also available at your local DMV office and some forms are available on the internet (forms available on the internet are linked to the form page). For more information on ordering forms in bulk quantities click here.

Dispute Resolution

The lien sale process explained in this section is governed by California Civil Code §3072. Disputes between a lienholder and an interested party (including the registered owner or legal owner on the vehicle history records) are a civil matter that can only be decided in court and do not involve the Department of Motor Vehicles.

The DMV can assist you by providing:

• The lienholder with the names and addresses of the registered owner, legal owner and interested parties from our vehicle history records.
  
• Mailing of written approval to hold or conduct a lien sale based upon the filing of specific documents or denial to a lien sale based on the filing of a Declaration of Opposition.

Note: Information retrieved from our records is based on the vehicle identification provided by the lienholder.