How to Buy a Car With a Title Lien

A title lien is a claim placed upon a vehicle when the debt has not been satisfactorily paid off. Title liens are normally placed by a lending institution such as a finance company or bank. In order to legally to transfer a vehicle's title to your name, the title lien must be taken care of. The process of purchasing a car with a title lien is relatively simple as long as both parties are up front and honest and willing to get it taken care of.

Instructions

1

Ask the seller who the lien holder of the title is and inquire about the total amount due in order to get the lien released. Contact the lien holder to determine if there are any other stipulations involved in releasing it. Draw up a contract with the seller indicating the details of the sale, including the payoff price of the lien.

2

Pay off the balance of the lien if possible. Go with the seller in person to the lien holder if necessary or if you are financing the vehicle through your bank, inform the bank of the lien including the name of lien holder along with the amount owed. Get a written contract from the seller if you are unable to pay the lien off.

3

Pay for the car and get a bill of sale. Be certain both you and your seller sign the bill of sale and date it, and preferably have it notarized in front of a witness.

4

Wait for the vehicle's title after you have paid the lien off. Bring your title and bill of sale to your local Department of Motor Vehicles office. Register the car in your name and fill out any necessary forms. Bring your identification, appropriate title transfer fees and proof of insurance. A new title in your name will be mailed to you.