Lien Release

A lien release is issued by a lender confirming a vehicle loan has been satisfied and the lender's security interest is terminated. In electronic title states, the release is processed digitally. In paper title states, the lender signs and returns the physical title.

Dealers must obtain and process lien releases before completing any sale where the prior owner had an outstanding loan. Delays in receiving a lien release can hold up title transfer and retail delivery. A clear process for tracking and following up on outstanding releases keeps deals moving.