Lien Sales and Abandoned Vehicles
Chapter 5 — Lien Sales and Abandoned Vehicles
5.000 Introduction
This chapter contains the procedures for lien sales and abandoned vehicles.
4.090 Unavailable Evidence of Ownership (VC §11520 [a])
When regular evidence of ownership is not obtainable, proof that the dismantler sent a letter of demand for the documents within 90 days of the date of acquisition to the person from whom the vehicle was acquired may be substituted for documents that cannot otherwise be obtained.
Proof is a certified letter returned unclaimed and unopened, or the postal receipt acknowledging receipt of the letter by the addressee, in situations where a certified letter is sent and delivered, but the sender does not receive a response.
4.080 U.S. Customs Bill of Sale
A bill of sale is issued by the U.S. Customs office to a licensed dismantler, instead of a United States Government Certificate (Standard Form 97), for low value vehicles that are sold for scrap. The bill of sale must state “Vehicle sold for scrap/parts only. Government does not convey title of vehicle resale.”
4.070 Dismantler’s Bill of Sale
A Dismantler’s Bill of Sale is issued by a dismantler when a vehicle is sold that the dismantler reported as junk. It must include the dismantler’s acquisition number.
4.060 Junk Receipt
A Junk Receipt is issued by the California DMV instead of an ownership certificate for a junk vehicle and becomes the ownership document when an individual surrenders the evidence of ownership and requests “junk” status for a vehicle.
4.050 Nonrepairable Vehicle Certificate
A Nonrepairable Vehicle Certificate (REG 490) is issued instead of an ownership certificate for a nonrepairable vehicle and becomes the ownership document. Once this certificate is issued, the vehicle cannot be titled or reregistered for use in California.
4.040 Salvage Certificate
A Salvage Certificate (REG 489) is issued instead of an ownership certificate for a total loss salvage vehicle and becomes the ownership document. This certificate can only be issued in the name of the insurance company or the owner shown on the department’s records at the time the vehicle was wrecked, not to a subsequent buyer.
Prior to sale or disposal of a total loss salvage vehicle, the owner must obtain a properly endorsed Salvage Certificate (REG 489) and deliver it to the automobile dismantler within ten days after full payment for the salvage vehicle (VC §11515[e]).
4.030 Nonresident Vehicles
Generally, all states issue a title to most motor vehicles. Some states do not issue titles for non-motorized vehicles, such as trailers. Also, in the past, some states did not issue titles to certain older motor vehicles and trailers. Dismantlers may contact a local DMV office to verify whether or not a title would have been issued for a vehicle, because of its age or type.
Vehicles From a Title State—Evidence of ownership must be the title, properly endorsed by the owner/seller. A bill of sale is acceptable in lieu of the seller’s signature on the title. If there is a lienholder shown on the title:
- The lien must be marked “paid” and countersigned by the lienholder, or
- A Lien Satisfied (REG 166) (PDF) must be submitted, or
- An original or certified copy of the conditional sales contract or security interest must be marked “paid” and countersigned by the lienholder.
Vehicles From a Nontitle State—The following are acceptable as evidence of ownership when a title was not issued by the jurisdiction where the vehicle was last registered.
- A clear title from another state or country.
- A letter from the nontitle state indicating that a foreign title was surrendered to that state (unless the registration indicates a title was surrendered).
- A bill of sale or dealer invoice to the registered owner named on the nonresident registration that identifies the vehicle by make and identification number, states the vehicle is free of all liens and encumbrances when sold to the buyer, and indicates the vehicle was paid for in full.
- The original or certified copy of a conditional sales contract marked “paid” with the lienholder’s name and a countersignature or cleared by a lien satisfied. An original or certified copy of a nonresident dealer invoice that describes the vehicle by make and identification number, shows the dealer’s name/address in the invoice letterhead, gives the buyer’s name(s), and is marked “paid” and countersigned by the dealer may be substituted for the conditional sales contract.
4.020 Application for Duplicate Title
An Application for Duplicate Title (REG 227) (PDF) is used to transfer ownership when the California title is lost, stolen, mutilated, or illegible. A mutilated or illegible title must be submitted with the application. The REG 227 (PDF) must be properly completed and endorsed for transfer. If the legal owner/lienholder of record is releasing interest, the signature must be notarized (VC §5752).
A California notary’s stamp must include the notary’s name, the commission number, and expiration date, the county and state in which the commission was granted, and the state seal. An out-of-state notary’s stamp is acceptable. (Other states might not require the same information as California.)
Notarization may be:
- Next to the legal owner’s/lienholder’s release signature on the REG 227 (PDF), or
- On a separate sheet of paper attached to the REG 227 (PDF), or
- On any other document submitted in place of the release signature on the REG 227 (PDF) that shows satisfaction of the lien, such as a Lien Satisfied (REG 166) (PDF).
EXCEPTION: An insurance company (or its agent) is exempt from the notarized signature requirement on transfers of total loss salvage vehicles to the insurance company when a lienholder is indicated on the department’s record and an acceptable lien satisfied document from the lienholder is submitted by the insurance company (or its agent).
4.010 California Certificate of Title
There are several versions of the California title in existence:
- The complying pink with a blue border and a white opaque state seal Certificate
of Title. - The complying “rainbow” (multi-colored) Certificate of Title.
- The non-complying “rainbow” Certificate of Title.*
- The Certificate of Ownership (aka “pink slip”).
*A non-complying title does not contain an odometer disclosure statement.