How to Put a Lien on a Car Prior to Issuing the Title

Learn the details of the car-buying process.

A car title is issued by the state Department of Motor Vehicles and is used to provide proof of ownership. A title is usually watermarked to prevent duplication and is provided to either the new owner or lien holder at the time of purchase.

Things You'll Need

• Original car title or title application form
• Lien holder information
• Car owner
• DMV contact information

Instructions

1. Make sure you have the correct name and address of the lien holder. This information will be used to complete a title application or bill of sale. The lien holder is usually the person who loaned money to the buyer in order for the vehicle to be purchased. The lien holder can be an individual or a lending institution.

2. Obtain a title application and bill of sale from from your local Department of Motor Vehicles (DMV). Both the title application and the bill of sale will have information to be completed including the year, make, model and Vehicle Identification Number or serial number of the car. Also included in the forms are a place to input the lien holder's name and mailing address. Both of these forms must be signed by the seller and the new buyer.

3. Once the forms are completed you may either mail the forms to your state's Department of Motor Vehicles or visit a branch location. Most offices are able to generate the new title on site. The title should be from the state in which you currently reside. If you live in South Carolina, but purchased the car in Georgia, you will need to obtain a title from South Carolina. This will save the car owner from paying out-of-state personal property taxes.

4. You will then receive a new title. The new title from the DMV will be in the owner's name but will also have the lien holders name and address on the title. The title should be kept in a safe place. A duplicate title can be issued from the DMV for an additional fee. In order to transfer the car title without a lien, the lien holder must release their lien from the title.

References

• "South Carolina Department of Motor Vehicles: Titles and Registration"