What Does Car Release of Lien Mean?

[Donna]

Car release of lien refers to the process of canceling the mortgage registration procedures for a mortgaged vehicle at the vehicle management office. After the release of lien, the car can be freely traded because, with a mortgage record, the vehicle cannot be freely traded or transferred. The reason a car is referred to as a mortgaged vehicle is that it has previously undergone mortgage registration at the vehicle management office, and the mortgage record is directly reflected on the motor vehicle registration certificate, which contains detailed mortgage information. Materials required for release of lien: Identity proofs of the vehicle owner and the mortgagee, the motor vehicle registration certificate. If the mortgage is to be released through court mediation, ruling, or judgment, the vehicle owner or mortgagee must fill out an application form and submit the motor vehicle registration certificate, the effective "Mediation Agreement," "Ruling," or "Judgment" issued by the court, along with the corresponding "Notice of Assistance in Execution." Release of lien process: Make an appointment for the service via an official account and receive a successful appointment SMS voucher. The mortgagor and mortgagee must bring all required materials together, show the successful appointment SMS, take a number at the service hall, and take a joint photo. The service is processed in order at the window, where the successful appointment SMS must be shown, and both the mortgagor and mortgagee must take a joint photo. Both parties can then collect the motor vehicle registration certificate at the designated window.

[VonNadia]

Last year after I took out a car loan, the bank said the vehicle had to be mortgaged. Only after paying off the loan did I learn about the 'release of mortgage' procedure, which removes the lien record from the vehicle's file. This is crucial—only after getting the 'mortgage released' stamp on the green title does the car truly belong to you. Selling a car without releasing the mortgage can be troublesome. Recently, a buddy got stuck during title transfer and had to rush through last-minute paperwork, delaying things by a week. The process has now been simplified—some cities even allow online processing. I recommend keeping all repayment receipts and going directly to the DMV with your ID, green title, and the lender's loan clearance certificate. Staff will verify system records and archive it on the spot. Don’t procrastinate—it’s frustrating to discover the lien wasn’t released when you urgently need the car.

[Saul]

Our auto repair shop often encounters vehicles with mortgages coming in for maintenance. Customers always think that once the loan is paid off, everything is settled. In fact, the release of the vehicle's mortgage is a legal procedure. During the loan period, the vehicle's registration certificate is held by the bank, and the vehicle management office has a mortgage record on file. After repaying the loan, the financial institution must issue a settlement document, and the owner must take this document along with the original registration certificate to the vehicle management office to complete the mortgage release registration. Without this step, the vehicle cannot be transferred. Although annual inspections are not affected, the vehicle may still be subject to police checks. Last week, we helped a customer check their records—they had paid off their car loan three years ago but never completed the mortgage release, and now they’re trying to sell the car and have to go through the process retroactively. We recommend completing the mortgage release within 30 days after repaying the loan to avoid complications.

[VanLucille]

Vehicle lien release is the process of clearing the mortgage registration. When taking out a car loan, financial institutions file a mortgage record at the DMV, which needs to be canceled after repayment. The key documents required are the vehicle registration certificate and the loan clearance certificate issued by the financial institution, sometimes along with a power of attorney. Visiting the DMV to fill out an application form takes only about ten minutes at the counter. Special attention should be paid to ensuring the names of the mortgagee and the registered owner match exactly. Last year, while assisting someone with the process, it was discovered that the institution had changed its name without updating the records, leading to three rounds of back-and-forth. Once the lien is released, the vehicle can be freely traded; otherwise, the transfer of ownership cannot be processed.

[VonLila]

As a financial consultant, I have handled hundreds of cases of vehicle lien release. Essentially, it involves lifting the property rights restriction, as the vehicle serves as collateral during the loan period. The key lies in document preparation: the loan completion notice and the mortgage cancellation application form must be stamped by the bank. If the registration certificate is lost, it must be reissued first. Some cities now offer electronic lien release, but most still require in-person processing. Special attention should be paid to modified vehicles, which must be restored to their original condition before processing. I once had a client whose lien release failed due to unregistered color modification. The entire process is free of charge, and the registration system update can be completed as quickly as the same day.