Loan Pay Offs and Vehicle Titles: What You Need to Know

If your loan or lien was established on or after July 1, 2017, and your lienholder uses the ELT system, the process is straightforward. The lienholder will notify the DMV of the lien satisfaction, and no additional action is required from you. Ensure that your lender has your correct address, as the new title will be mailed to the party requested by the lienholder. There's no need to submit any paperwork to the DMV.

If your loan or lien was established before July 1, 2017, the bank or lienholder may have a paper title for your vehicle. In this case, they must sign the appropriate section of the vehicle title and deliver it to you when your loan is paid off. Importantly, lenders using paper titles do not notify the DMV of the payoff. If you do not receive a new title, the lienholder will continue to be listed in the DMV records.

To complete the title transfer, you must fill out the "Lienholder To Be Recorded Section" on the back of the title. If the new Certificate of Title is to reflect a security interest in the vehicle, make sure to record the lienholder's name and address. There's no need to complete the odometer statement on the front; simply write "None" if there's no new lienholder to be recorded. Be cautious about any alterations or erasures on the title, as they can void a Nevada Certificate of Title.

If your lienholder does not have the title and it's not an ELT document, they may complete and notarize a Lien Release form and send it to you. In this case, you'll need to complete an Application for Duplicate Title and submit both to the DMV as outlined above.

Remember that these procedures are specific to Nevada, and if your vehicle was last titled in another state, you'll need to obtain a duplicate title from that state.

If you're purchasing a vehicle you've been leasing, a Nevada dealer or lienholder will collect sales tax and the title fee due on the sale. The dealer will submit the title and a Dealers Report of Sale (DRS) to the DMV, and a paper title will be mailed to the registered owner if there's no new lienholder. Out-of-state dealers should provide you with the title or a Bill of Sale, which you can bring to a DMV office for processing.

If your vehicle is not due for renewal, you don't need to worry about registration renewal or emissions inspection when completing a lease buyout. However, it's essential to have a registration issued in your name. Nevada dealerships are authorized to collect a $5.00 duplicate registration fee. You'll receive the new registration separately from the title.

In case the dealer does not collect the $5.00 fee, and you need a corrected registration, bring your receipts and other paperwork to a DMV office or follow the mail-in instructions provided.

Please note that individuals or businesses cannot simply place a lien on a vehicle. Only licensed garages, tow companies, or storage businesses with a signed work order, property release, or contract can sell a vehicle through a lien sale. This process involves owner notification and a public auction. Private landowners or property management companies must contact local law enforcement and/or towing services for the removal of abandoned vehicles.

For specific information and forms related to these processes, you can refer to the Nevada DMV website.