Lien Sale Title Transfer in California

The two California tracks

California has two lien sale procedures, and the track is decided by value, with one exception that overrides value.

The lower value track covers vehicles valued at $4,000 or less under Civil Code section 3072. The lienholder is not required to apply to the DMV for authorization. The higher value track covers vehicles valued at $4,001 or more, or stored at a self-service storage facility, under Civil Code section 3071. A self-service facility is real property designed and used for renting or leasing individual storage space, excluding a garage or storage area in a private residence. A vehicle stored at such a facility follows the higher value track even if it is worth less. Getting the track wrong means using the wrong notice form and authorization step, so value and storage fact should be settled first.

Both tracks rest on the same lien rules. A person who has repaired, furnished supplies or materials for, towed, or stored a vehicle and is not paid has a lien. The lien may be satisfied by a court judgment or by a lien sale. The lienholder must have possession of the vehicle. The lien arises when the registered owner is presented with a written statement of charges for completed work, or 15 days after the work is completed, whichever occurs first. For an impound, it arises when the vehicle is transported. The legal owner must be notified before repairs, service, or storage if repairs or service exceed $1,500 or storage exceeds $1,025, or $1,250 for vehicles valued over $4,000.

A lienholder must apply for authorization or file a court action within 30 days after the lien arose, or the lien is no longer valid. There is an exception for certain lower value liens based on towing, storage, or labor where possession results from a public agency, private party impound, or owner request. In those cases, proceedings must begin within 15 days. A salvage pool cannot conduct a lien sale in order to obtain title, under Vehicle Code section 11515. A lien may be extinguished if the lienholder does not respond within 10 days to a written demand by the legal owner or lessor for a work order copy or for authorization to perform the services.

Lower value procedure, section 3072

Step 1 is the record request. Within 15 days after the lien arises for an impound case, or within 30 days for other reasons, the lienholder must submit form INF 1126, with the nonrefundable processing fee, to obtain the vehicle record by vehicle identification number. A vehicle with a missing VIN must be referred to the California Highway Patrol before a record is released. The fee amount is not stated in the passage read, and no amount is given here.

Step 2 is notice. Immediately on receipt of the record, and at least 31 days but not more than 41 days before the sale, the lienholder must send form REG 668, with a return envelope pre-addressed to the DMV, by certified mail with return receipt requested or by certificate of mailing, to the registered owner, the legal owner, and any known interested parties, and send the REG 668 by certified mail to the DMV. Where multiple form REG 138 notices appear on the record, only the buyer on the last REG 138 must be notified. If there is no record, the REG 668 must be sent to the DMV and any known interested parties.

Step 3 is opposition. Owners and interested parties have 10 days from mailing to oppose by signing and returning the Declaration of Opposition on the REG 668 to the DMV. Step 4 is the DMV response. If opposed, the DMV sends a letter denying the application. If opposed and the lienholder submits an item from the Declaration of Opposition section, the DMV sends a letter granting authorization to continue.

Step 5 is posting. For at least 10 consecutive days before and including the sale date, the lienholder must post a REG 668 at the business office, and at the sale site if elsewhere. Step 6 is inspection for at least one hour before the sale, at the place and time on the REG 668. Step 7 is the sale, in a businesslike manner, with no sealed bids.

Step 8 is post-sale paperwork. The lienholder must remove and destroy the plates, submit form REG 138 within 5 days, and complete form REG 168A. If no qualifying bid is received, the lienholder completes it as both seller and buyer. Step 9 states there is no redemption period, and the buyer may take immediate possession. Step 10 lists what the buyer must receive: the REG 168A, the DMV record printout, the mailing receipts attached to the REG 168A, and DMV authorization to continue if the sale was opposed. All notices must specify make, year model, VIN, and engine number for motorcycles.

Higher value and self-service storage procedure, section 3071

Step 1 is the authorization application. Within 30 days after the lien arose, the lienholder must submit form REG 656, with the nonrefundable processing fee, to the DMV Lien Sales Unit, PO Box 932317, Sacramento, CA 94232-3170. Step 2 is DMV notice by certified mail, with 10 days to oppose by returning the Declaration of Opposition. If the vehicle is registered in another state, the department notifies that state agency. Step 3 is the DMV decision. If opposed, the DMV denies the application. If not opposed, it grants authorization. Step 4 is setting the sale date on receipt of authorization.

Step 5 is lienholder notice. Twenty days before the sale, not counting the sale day, the lienholder must send form REG 280 by certified mail, return receipt requested, to the registered and legal owners, all persons known to have an interest, and the DMV. Step 6 is advertising. At least 5 days but not more than 20 days before the sale, not counting the sale day, the lienholder must advertise in a newspaper of general circulation in the county where the vehicle is located. If no such newspaper exists, notice must be posted in three of the most public places in the town and at the sale place, for 10 consecutive days before and including the sale day. Step 7 is inspection for at least one hour before the sale. Step 8 is the sale, in a businesslike fashion, with no sealed bids.

Step 9 is redemption. After the sale, the lienholder must keep the vehicle for a 10 day redemption period, during which the registered or legal owner may redeem by paying all costs and expenses. Step 10 is post-redemption paperwork: remove and destroy the plates, submit form REG 138 within 5 days, and complete form REG 168, as both seller and buyer if no qualifying bid is received. Step 11 lists the buyer documents: the REG 168, mailing receipts, DMV authorization, and, if opposed, a court judgment, a release of interest, or DMV authorization to continue. Step 12 requires any excess fees to be submitted with a copy of the REG 168 to the DMV within 15 days. Step 13 in the dismantler handbook covers a dismantler submitting form REG 42 within 90 days of acquisition. That step applies to dismantlers, not to an ordinary buyer.

Buyer title application in California

The buyer must submit form REG 343, or form REG 42 as appropriate, a properly completed certification, REG 168A or REG 168, the mailing receipts, the DMV record printout, any authorization to continue if opposed, form REG 31 unless a vehicle record exists, other documents as needed such as bills of sale and odometer disclosure on form REG 262, a smog certification if appropriate, and fees due. The handbook states fees due without giving an amount, and form REG 168A states that registration fees and penalties become due on the lien sale date. No total fee figure is given here. Confirm the amount due with the DMV, and check that the certification, receipts, and printout match the vehicle identification number and sale date before filing.

Two validation checks are stated for lower value sales. The INF 1126 must have been submitted within 15 days after the lien arose in the cases that rule covers, or the sale is invalid. The postmark on each postal receipt must be at least 31 days but not more than 41 days before the sale date. A buyer who receives paperwork outside that window, or with no record printout, should ask the lienholder to explain the gap before relying on the file.

For the broader process, see the title transfers by state directory and the guide on how long a car title transfer takes. The overview is at lien sale title transfer, and the buyer checks are at buying a vehicle at a lien sale. If the lien was a recorded loan lien that has been released, see how to transfer a car title after a lien release.

Source

Facts come from the California DMV Vehicle Industry Registration Procedures Manual, Chapter 18, sections 18.065 and 18.145, and dismantler handbook section 5.500, plus forms REG 168A and REG 168 as published on dmv.ca.gov. Facts verified 2026-10-31. Open flags: DMV processing fee amounts for INF 1126 and REG 656 are not stated in the passages read; total title and registration fees are not stated as a figure; the free and clear effect of a completed sale is not stated in the passages read.

This page explains how the process works and what the official rules say. It is general information, not legal advice. For a dispute about your specific situation, talk to your state motor vehicle agency or court.