What Does Car Release of Lien Mean?
2 Answers
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.
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.
