Section 23 of 38
Chapter 22: Corrections and Adjustments
22.060 Lienholder/Legal Owner Omitted (CGC §818.5)
When a lienholder/legal owner (LO) name is omitted on the California Certificate of Title because it was not shown on the registration application or due to a DMV error and an application is received to correct the omission, the application must be forwarded to the Involuntary Transfer Section (ITS) in DMV headquarters.
| If the | ITS Will |
|---|---|
| If theOmission is a DMV error | ITS Will• Cancel the incorrect title. • Issue a corrected title to the LO, provided the vehicle has not been encumbered with another lien. |
| If theDMV has issued a title to a second LO due to another lien taken on the vehicle | ITS Will• Place a stop on the vehicle record. • Notify all parties that any outstanding California Certificate of Title will not be honored until the matter is resolved. NOTE: A resolution may be to submit the properly released California Certificate of Title or a court order. |
| If theTitle was used by the registered owner to transfer ownership of the vehicle and a new title has been issued to the buyer |
Note A courtesy stop may be placed on the vehicle record for 30 days to allow the dealer or LO to obtain a restraining order and stop the issuance of any title until a resolution can be made.