Frequently Asked Questions
This FAQ is designed to answer most common lien sale questions. The DMV’s Lien Sale Unit is also available at (916) 657-7617.
Lienholders
No. All auto repair shops in California must be registered with the Department of Consumer Affairs’ Bureau of Automotive Repair.
When the lien sale is opposed, DMV sends a denial letter to the lienholder. The lien sale cannot be conducted unless one of the following occurs:
The declarant signs the Release of Interest section on the bottom of the denial letter and the lienholder submits the original signed document to DMV.
The lienholder files an action in court within 30 days of the date DMV’s notice was mailed and a judgment is awarded to the lienholder that is not paid within five days of becoming final. Submit to DMV a copy of the court judgment with a copy of the plaintiff’s claim and a Statement of Facts (REG 256) form stating, “A court judgment has been received in the lienholder’s favor. It has been at least 35 days and no money has been received.”
The lienholder could not serve the declarant pursuant to CCC §§3071(e) or 3072(e), and the lienholder submits the following documents to DMV: an Application for Authorization to Continue Lien Sale After Unsuccessful Service (REG 659) form with the unopened certified letter that contains the court documents or the documents proving unsuccessful personal service.
When one of the items listed above is received by the Lien Sale Unit at DMV headquarters, DMV will send authorization to continue with the sale to the lienholder and notify the person who opposed the sale of the authorization.
No. If the vehicle in your possession has California license plates and you are out-of-state, you must follow the lien sale laws of that state. You can acquire the names and addresses of the legal and registered owners of the vehicle by using the Request for Record Information (INF 70) form.
Out-of-state lien sale requesters must cite their state statute by code name and section number AND attach a copy of the statute to their request. For further information, contact the DMV Information Release Unit at (916) 657-8098.
Note: Out-of-state requesters cannot use Registration Information Request for Lien Sale (INF 1126) form, which is for California based requesters only.
Please contact the Lien Sale Unit at (916) 657-7617.
A lien becomes effective when the registered owner receives a written statement of charges for completed work or services. However, if the vehicle was impounded by a public agency or private property owner, the lien takes effect once the vehicle is towed. (Reference: DMV Civil Code 3068)
Vehicles valued under $4,000: Approximately 35 days
Vehicles valued over $4,000 or vessels: Typically 90 to 120 days
Out-of-state vehicles may take longer due to record requests from other states.
We are unable to appraise the value of your vehicle, but we can help guide you on how its estimated worth may determine the appropriate lien type. Once you submit your order, we’ll assist you in assessing your next steps.
For lien sale purposes, the estimated value is determined by a public agency. If they do not provide an estimate within three days of the vehicle’s removal, the responsibility falls to the garage keeper or their authorized agent.
The vehicle must be available for public inspection at least one hour before the sale begins.
Anyone, including members of the public or individuals with a vested interest, is welcome to attend and bid on the vehicle.
Bidding starts at the amount owed, and sealed bids are not permitted.
After the sale is completed:
The vehicle’s license plates must be removed and destroyed.
Within five days, a completed Notice of Release of Liability form must be submitted to the DMV.
The lienholder must ensure the sale was conducted in a commercially reasonable manner, and all required documents should be provided to the buyer immediately.
The legal owner must be notified within 15 days for storage fees to continue accumulating.
If they are not notified in time, they are only responsible for the first 15 days and then any charges incurred three days after receiving written notice.
The legal owner is informed of the lien sale, along with the registered owner and any other interested parties.
If the legal owner chooses to reclaim the vehicle, they are typically responsible for up to $1,250 plus lien fees.
Yes. A Notice of Pending Lien Sale must be displayed in a visible location at the lienholder’s business premises at least 10 consecutive days prior to and including the sale date. If the sale is taking place at a different location, the notice must also be posted at the sale site.
The notice must include:
The sale date and time
A detailed vehicle description (make, model, year, VIN, license number, state of registration)
For motorcycles, the engine number
The notice must remain posted until the sale concludes.
Personal property inside the vehicle is not part of the lien.
The registered owner may claim personal belongings upon request (excluding items attached to the vehicle, such as radios, wheels, and speakers).
The lienholder is not responsible for personal property left in the vehicle after the lien sale date.
If the sale price exceeds the owed amount, the excess funds must be submitted to the California DMV Lien Sale Section, along with a completed Certificate of Lien Sale.
If the sale date passes without an owner or interested party reclaiming the vehicle, it may be sold at an agreed-upon price between the buyer and seller.
Yes. Anyone with a known interest in the vehicle can stop the lien process by filing a Declaration of Opposition with the California DMV within the legally allowed timeframe.
This document must be signed within 10 days of receiving the Notice of Pending Lien Sale.
A Declaration of Opposition is included in all notifications sent to registered owners, legal owners, and interested parties.
If the owner arrives before the lien sale date and pays the total amount owed—including the Lien Sale Filing Fee—they can reclaim their vehicle. At that point, the lien sale process is canceled, and you will have been compensated for storage, towing, and/or repair costs.
Towing companies & self-storage facilities: A lien sale may begin as soon as the vehicle is in your possession.
Mechanics, repair shops, and body shops: The lien sale can start either after presenting the bill to the customer or 15 days after the completion of work, whichever comes first.
Important Note: The lien fee can only be charged after 72 hours have passed from when the lien was initiated.
The State of California does not regulate storage fees, but businesses that regularly store vehicles (such as storage facilities and towing companies) must clearly post their daily storage rates in a visible area.
Additionally:
Some cities may impose storage fee limits, so check with local regulations.
For Short or Very Short Liens, you can claim storage for up to 60 days from the date of possession or work completion at your posted daily rate.
For Long Liens, storage can be collected for up to 120 days from the possession or work completion date.
Special Case:
If a Short Lien receives an opposition and you later obtain an authorization letter from the DMV to proceed, you may also claim up to 120 days of storage fees under California Vehicle Code (CVC) 22851(a).
Towing companies (OPG) are exempt from these restrictions.
A Declaration of Opposition is a legal form that allows the vehicle owner to contest a lien sale by filing with the DMV. If an opposition is filed, the sale cannot proceed on the scheduled date. (Reference: CVC 3072)
If you receive a Denial Letter or Declaration of Opposition, you have three options:
Contact the opposing party and request that they complete a Release of Interest (located at the bottom of the Denial Letter). This must be mailed to the DMV (faxed or photocopied copies will not be accepted).
File a lawsuit in Small Claims Court against the opposing party. If you win, wait 30 days, then submit the original judgment documents to the DMV to obtain authorization to proceed with the lien sale.
Prove that the opposing party is unserviceable (e.g., they cannot be reached at the provided address). Submit documented proof of failed service attempts to the DMV. (Reference: CVC 3072)
Yes, but be aware that once you accept any payment from the customer, the lien sale is no longer valid. If they are willing to pay, ensure they cover the full amount owed before proceeding.
Yes. The purpose of a lien sale is to recover the money you are owed, but the process must be legally followed.
The vehicle cannot be sold before the scheduled sale date.
You must wait at least 31 days from the start of the lien process.
On the scheduled date, you must hold a public auction where all interested bidders have a fair chance to participate.
Parking violations or past tickets: These remain the responsibility of the previous owner. The buyer is not liable for any outstanding fines.
Unpaid vehicle registration fees:
If the registration was already expired before the vehicle was towed, the buyer will be responsible for paying any outstanding DMV fees.
If the registration expired while in storage, penalties may be waived, but this is ultimately decided by the DMV clerk processing the registration.
Mistakes happen, which is why we recommend double-checking all forms before submission.
Some errors can be corrected without refiling.
However, in most cases, the lien sale must be resubmitted, and a new sale date will be assigned.
Vehicle Owners / Interested Parties
The notice is to let you know that a lien sale is pending for the vehicle. The lien sale allows the business (lienholder) to recover the money owed for repairs, towing, and/or storage of the vehicle.
The notice of pending lien sale is required to be sent to all the following:
the registered and legal owner(s) of record,
any person identified as a buyer on a Notice of Transfer and Release of Liability (NRL) filed with DMV, and
any person known by the lienholder to have an interest in the vehicle.
You received the notice because DMV records indicate you still have an interest in this vehicle.
If you have gave DMV an NRL, it is on file. However, to complete the vehicle sale, the person you sold the vehicle to must change the ownership at DMV. You may still be listed as the vehicle owner, which is why you received the notice.
When the window to oppose the lien sale has past, it becomes a civil matter between the parties involved. You may want to seek legal advice if you are unsure of your options, the consequences, or of what you want to do. However, many times in this situation customers choose to:
Work with the lienholder to pay all fees due in order to retrieve the vehicle before it is sold.
Do nothing and let the vehicle be sold.
File a court action to prevent the sale of the vehicle if it is believed that the lienholder is not entitled to the money owed.
Note: if the lienholder takes you to court for the remainder of money owed after the sale of the vehicle, or if you file a court action against the lienholder to prevent the sale, the court may determine that you owe the money and court fees.
You can remove the lien by providing DMV with proof of possession, such as:
For registered owners, a vehicle verification or proof of payment on the lienholder’s letterhead.
For legal owners, a Certificate of Repossession.
The vehicle verification must be completed by an authorized DMV representative, California licensed vehicle verifier, authorized auto club (AAA) employee, or peace officer who has been properly trained to perform vehicle verifications.
Proof of possession may be submitted one of the following ways:
By Fax: (916) 657-8763
By Mail: P.O. Box 932317 Sacramento, CA 94232
In person at a local field office.
You may find a location near you by using the link below. Be sure to access the “Select a Service” drop down button and choose the “Field Offices” box shown under “Location Types”: https://www.dmv.ca.gov/portal/locations/
No, you cannot conduct a lien sale on a vehicle in which you have a monetary interest.
Follow the link below to access the Financial Institution Locator which provides resources for locating a legal owner and provides the process when the legal owner is closed, or no information is available:
https://www.dmv.ca.gov/portal/vehicle-registration/titles/find-your-financial-institution/
Please contact the Lien Sale Unit at (916) 657-7617.
Vehicle Purchasers / New Owners
Please contact the person or business where you bought the vehicle to request copies of the documents. If documents are unavailable, contact the Lien Sale Unit at (916) 657-7617 for more information.