18.105 Proceeds of a Lien Sale (CC §3073)

The proceeds of a sale must be used to pay the lien (towing, storage, or repairs) and the cost to conduct the lien sale. The lienholder must forward any remaining balance to the Lien Sale Unit at DMV headquarters within 15 days of the sale date, with a copy of either the Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF) or Certification of Lien Sale for Vehicle Valued Over $4,000 or From a Self-Serve Storage Facility (REG 168) (PDF).

18.100 Planned Nonoperation (PNO) (VC §4604)

The lienholder is not required to file a Certificate of Non-Operation (REG 102) (PDF) if the vehicle:

• Was currently registered when the lien originated.
• Subsequently expired while being stored by the lienholder pending a lien sale.
• Fees (registration or PNO) are not due until the vehicle is sold at lien sale and must be paid within 20 days of sale to avoid penalties. A REG 102 is not required.
• If the vehicle was not currently registered when the lien originated, all fees and penalties will be due when the vehicle is subsequently sold.

18.095 Parking and Toll Violation Liens (VC §22851.1)

An additional lien for unpaid parking and toll violation bail may be added for a vehicle impounded by local authorities for parking or toll violations that they issued.

Parking and toll violation bail collected as part of the lien sale process is not submitted to DMV. The lienholder must submit those fees directly to the local authorities who ordered the vehicle impounded

18.090 Military Lien Sales

Vehicles abandoned on U.S. government property (principally military bases) are sold by U.S. government agencies under the provisions of federal law.

Some military bases contract with private companies to remove the vehicle and conduct the lien sale. When this occurs and there are excess proceeds from the lien sale, the fees in excess of the amount of lien and costs of the sale will not be submitted to DMV.

The excess amount is returned to the military installation by the private lien sale service for deposit into the appropriate account of the U.S. Treasury. In such cases, the lienholder (military) will submit a Statement of Facts (REG 256) (PDF) with the Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF) or the Certification of Lien Sale for Vehicle Valued Over $4,000 or From a Self-Serve Storage Facility (REG 168) (PDF) which specifies the name and address of the federal office where claims may be filed. The Lien Sale Unit in DMV headquarters maintains a file of all excess proceeds deposited with the federal government during the past four years.

The following must be submitted:

• An Application for Title or Registration (REG 343) (PDF).
• The properly endorsed California Certificate of Title. In lieu of signatures on the title, accept one of the following:
  — A bill of sale.
  — A Certificate of Sale by a U.S. government agency.
• The evidence of notice regarding sale of vehicle to the last owners of record from a government agency. The notice should show the vehicle description, owners’ name, and state the owners were notified.
• A Verification of Vehicle (REG 31) (PDF), unless there is a vehicle record on the database or the California Certificate of Title is submitted.
• The odometer mileage disclosure on a complying title or on the Vehicle/Vessel Transfer and Reassignment Form (REG 262), as appropriate.
• A smog certification, if appropriate.

Forward to DMV headquarters if the required documentation has been provided.

18.085 Low-Valued Vehicles Removed for Reasons Other Than Abandonment (VC §22851.2)

Whenever a peace officer, or authorized employee of a public agency, removes or causes the removal of a vehicle for reasons other than abandonment that has a value of $500 or less, the public agency must dispose of the vehicle.

18.080 Local Abatement Procedure

A city or county may adopt an ordinance establishing procedures for the abatement and removal of abandoned, wrecked, dismantled, or inoperative vehicles or parts from private or public property that are a public nuisance.

18.075 Liens Sale Valuation

For lien sale purposes, the public agency shall determine the estimated value of the vehicle.
If the public agency fails or refuses to estimate the value within three days after the date of removal of the vehicle, the garage keeper or the garage keeper’s agent must determine the estimated value of the vehicle.

18.070 Liens Sale Dispute Resolution

The lien sale processes explained in this Chapter are governed by (CCC §§3067–3074).
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 DMV.

18.065 Liens (CCC §§3068 through 3074)

A person who has repaired, furnished supplies/materials for, towed, or stored a vehicle and is not paid for the services rendered has a lien against the vehicle.

• The lien may be satisfied by obtaining a court judgment or selling the vehicle through a lien sale process outlined in the CCC.
• To conduct a lien sale, the lienholder must have possession of the vehicle.
• The legal owner must be notified before any repairs, service, or storage may be performed if the amount of any repairs or service exceeds $1,500 or the storage charges exceed $1,025 ($1,250 for vehicles valued over $4,000).
• The lien arises (becomes effective) at the time the registered owner is presented with a written statement of charges for completed work or services, or 15 days after the work or services are completed, whichever occurs first.
  — However, if possession is the result of a public agency or private property impound, the lien arises when the vehicle is transported (towed). An additional lien for unpaid parking bail may be added for a vehicle impounded by law enforcement for parking violations (VC §22851.1).
• A lienholder must apply for authorization to conduct a lien sale or file an action in court within 30 days after a lien has arisen, or the lien is no longer valid.
• The lien may be extinguished if the lienholder does not respond within 10 days to a written demand by the legal owner or lessor with either:
  — A written copy of the work order or invoice showing the services or repairs performed.
  — The authorization from the registered owner or lienholder to perform the services or repairs.

Exception: If the vehicle is valued under $4,000 and the lien is based on towing, storage or labor, in certain cases, where possession is a result of a public agency, private party impound, or owner/operator request, the lienholder must begin lien sale proceedings within 15 days of the date the lien arises.

• A Salvage Pool cannot conduct a lien sale in order to obtain title to a vehicle (VC §11515).
• Follow regular procedures in processing lien sales. Lien sale paperwork that shows a salvage pool as the lienholder, and was started prior to November 10, 2023, will still be accepted. Salvage pools may continue to sell vehicles that went through a lien sale process prior to the salvage pool’s possession.

18.060 Disposition of Vehicles Removed by a Local Abatement Procedure (VC §22661)

Follow the chart below to process a removal of an abated vehicle by local enforcement.

Step 1

Issue a 10-day notice of intention to abate and remove the vehicle or parts.

The 10-day notice is not required if:

• The property owner and the owner of the vehicle sign a release authorizing removal and waive further interest in the vehicle.
• If the property owner signs a release authorizing removal and waives interest in the vehicle, and the vehicle is either:
  • Inoperable due to the absence of motor, transmission, or wheels.
  • Incapable of being towed.
  • Valued at less than $200 and is determined by the local agency to be a public nuisance.

Step 2

Within five days of removal of an abandoned vehicle, submit a Notice – Removal of Abandoned Vehicle (REG 104) (PDF) to DMV. Attach any available evidence of registration, such as:

• Registration Card.
• Certificate of Title.
• License plates or a Statement of Facts (REG 256) (PDF) certifying that the license plates were destroyed.

Step 3

Dismantle the vehicle or dispose of it at a licensed dismantler or a scrap iron processor.