General Information
A person who repairs, provides materials, or tows or stores a vehicle and is not paid has a lien on the vehicle. The lien may be satisfied through a court judgment or by completing a lien sale as outlined in the California Civil Code. The lienholder must have possession of the vehicle to conduct a lien sale.
Note A salvage pool cannot conduct a lien sale to obtain title.
The lien becomes effective when the registered owner is given a written statement of charges for completed work or services. For vehicles impounded by a public agency or from private property, the lien begins when the vehicle is towed.
The legal owner must be notified before repairs or services are performed if the charges exceed $750, or storage charges exceed $400 ($500 for vehicles valued over $4,000).
Before conducting a lien sale, the lienholder must determine the vehicle’s value. For vehicles valued at $4,000 or less, the registered and legal owners of record will be notified by the party conducting the lien (See “Conduct a Lien Sale for a Vehicle at $4,000 or Less“).
For vehicles valued over $4,000, DMV notifies all interested parties. For questions, call (916) 657‑7617 between 8 a.m. and 5 p.m.
Note For lien accrual rules, see Civil Code §§3068 and 3068.1.
Steps To Get Started
- Complete an Application for Authorization for Lien Sale (REG 656) (PDF) with the required fee. The lien sale fee may be recovered from the buyer at the sale or from the debtor if the vehicle is redeemed.
- The application must include the vehicle identification number. If it is unavailable, request an inspection by a peace officer, licensed vehicle verifier, or authorized DMV employee.
- For vehicles valued over $4,000, DMV notifies the registered owner, legal owner, and interested parties by certified mail (or an out‑of‑state registry if applicable).
- Wait for DMV authorization before beginning the lien sale. Allow 30–40 days to receive authorization.
The period of time for a storage lien may not exceed 60 days, unless an application for authorization to conduct the lien sale is filed within 30 days after the lien arises, and then it may be for a period not to exceed 120 days (pursuant to California Vehicle Code §22851). Other liens for towing or contracted services (such as mechanical repairs) apply, regardless of the period allowed. Any vehicle stored at a self-storage facility for which a lien has incurred shall be sold under the provisions of Civil Code §3071.
Any person having an interest in the vehicle may declare opposition to the sale. DMV will notify you if a declaration of opposition is filed and the sale canceled. You may then secure your lien:
- Through judicial proceeding. Service may be effected by certified mail or in person by a marshal, sheriff, or certified process server (process servers are registered by the county clerk of the respective counties). This must be done within 30 days from the date on the denial letter
or
- By obtaining a release of interest signed by the person(s) who declared opposition
or
- By filing a Notice of Unsuccessful Service with DMV when service cannot be effected on the person opposing the sale. Evidence of unsuccessful service is required.
When DMV receives one of the listed items, DMV will send authorization to continue with the sale and notify the person who opposed the sale of the authorization.
At least 20 days before the sale, mail a Notice of Pending Lien Sale (REG 280) (PDF) by certified mail (return receipt requested) to:
- Legal owner (if any)
- Registered owner
- Interested parties
- DMV Lien Sale Unit, P.O. Box 932317, Sacramento, CA 94232‑3170
- At least five days, but not more than 20 days before the sale (not counting the sale date), you must give notice of the sale by advertising the sale for one day in a newspaper of general circulation in the county in which the vehicle is located.
If there is no newspaper published in the county, notice shall be given by posting the Notice of Sale:- In three of the most public places in the town where the vehicle is located, and
- At the place where the vehicle is to be sold for 10 consecutive days prior to and including the day of the sale.
- All notices shall specify the make, year model, vehicle identification number, license number, and state of registration, if available. For motorcycles, the engine number must also be specified. The specific date, exact time, and place of sale must also be included.
The vehicle must be available for inspection at a location easily accessible to the public for at least one hour before the sale and must be at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. If the auction price exceeds the amount of the lien, the excess amount must be sent to the Lien Sale Unit within 15 days after the sale date.
A redemption period of 10 days (not counting the date of sale) must be allowed before the purchaser can take possession of the vehicle and apply for transfer of ownership. You are required to keep the vehicle for the 10-day redemption period. After this redemption period, give the buyer:
- A Certification of Lien Sale (REG 168) (PDF) completed and signed by you.
- A copy of the authorization letter from DMV to conduct the sale (REG 338).
- Postal receipts for the notices you sent.
The license plates must be removed and destroyed at the time of the sale, and you must submit to DMV within five days of the sale a Notice of Transfer and Release of Liability.
Complete the Certification of Lien Sale (REG 168) (PDF) showing you as the buyer (new owner), as well as the seller. Should you sell the vehicle following the lien sale where you were the buyer, you will be required to give the buyer a bill of sale in addition to the documents listed for registering the vehicle.
The following items are required to register a vehicle sold or retained at lien sale:
- Application for Title or Registration (REG 343) (PDF) completed and signed by the new owner.
- Certification of Lien Sale (REG 168) (PDF) completed and signed by the lienholder or agent.
- A copy of the letter from DMV authorizing the lien sale, with the postal receipts attached.
- Verification of Vehicle (REG 343), if there is no California registration record.
- Smog certification, if applicable.
- Applicable registration and/or transfer fees and use tax.
- Vehicle/Vessel Transfer and Reassignment Form – Odometer Disclosure Statement (REG 262) is required for vehicles less than 10 years old.
- Other documents as needed, such as bill(s) of sale.
Note Many times a vehicle that is involved in a lien sale is not currently registered. If the vehicle registration expired while in your possession, the new owner has 20 days from the lien sale purchase date to pay registration fees without penalties, or to file a certification of planned non-operation. The buyer may be subject to registration fees and penalties in other instances. The lienholder should advise the buyer in writing of any fees that may be required to register the vehicle.
Most vehicles require a smog inspection at the time of transfer. If applicable, provide a smog certification to the buyer.