18.155 Vessel Liens—Boaters Lien Law (CH&NC §§500–509)

Every person has a lien (dependent upon possession), for compensation for making repairs, performing labor upon, furnishing supplies or materials for, storing, repairing or safekeeping of, and for costs incurred in mooring, berthing, wharfage, and anchorage of, and for the rental of a trailer parking space for that vessel or vessel/trailer combination, subject to registration with DMV.

The lien arises at the time a written statement of lien (bill) specifying the charges for services and/or storage is sent to the vessel owner(s). “Vessel” includes any trailer used in connection with the vessel which is in the possession of the lienholder at the time the lien arises.

Fair Market Value Statement—A statement of the fair market value completed and signed by a licensed yacht and ship broker must be sent along with the Notice of Pending Lien Sale for Vessels or Vessel/Trailers Valued at $1,500 or Less (BOAT 156) (PDF) to the Lien Sale Unit in DMV headquarters. The fair market value statement is not required if the vessel or vessel/trailer was a police impound.

Exception: The estimated value for vessels removed, or arranged for removal, by a public agency must be determined by that agency. If the agency fails or refuses to do so within three days after the removal date, the lienholder or lienholder’s agent must provide it on a Statement of Facts (REG 256) (PDF) (CH&NC §507).

Limitations of Lien (CH&NC §502)—No lien shall be valid for over $1,500 without the written consent of the legal owner. The cost for services may exceed the estimated charges by up to 10 percent.

• Consent for storage charges in excess of $1,500 is presumed if the legal owner fails to respond to the consent request within 15 days after receipt thereof.
• Consent in all cases is presumed for the 30-day period immediately following the giving of the notice.

Note: The lien shall not include any personal property in or on the vessel and such property must be given to the registered owner or the owner’s authorized agent upon demand (CH&NC §509).

Before a lien sale may be conducted, the lienholder must, within 60 days of the lien arising, either apply for authorization to conduct a lien sale in accordance with CH&NC §503 or file an action in court. If the lienholder cannot comply, recourse would depend on civil action.

Proceeds of the Sale—Proceeds of the sale shall be to pay the lien and the cost of keeping and selling the vessel. The actual cost of sale shall not exceed $100 for a vessel without a trailer and $125 for a vessel with a trailer, exclusive of DMV’s charges. The remainder, if any, shall be forwarded within 15 days to the Lien Sale Unit in DMV headquarters (CH&NC §507.5).

Storage Facility Records—Every keeper of a storage facility must keep a written record of each vessel subject to registration with DMV, which is stored for compensation for a period more than 12 hours. All records must be open to inspection by any peace officer (CH&NC §754).

18.150 Vehicles Valued Over $4,000 or From a Self-Service Storage Facility (CC §3071)

A self-service storage facility is any property designated and used for leasing individual storage space. This does not include a garage or other storage area in a private residence. The lien sale process for a vehicle valued over $4000 or obtained from a self-service storage facility is as follows:

Step 1

Within 30 days of the date the lien arose (date the registered owner was billed or when the public agency impounded the vehicle), the lienholder must submit an Application for Lien Sale Authorization and Lienholder’s Certification (REG 656) (PDF) and the nonrefundable processing fee to DMV at the address on the form.

Step 2

• DMV notifies the owner(s) of record and interested parties of the lien sale by sending a Notice of Lien Sale/Declaration of Opposition letter by certified mail.
• Owners and interested parties have 10 days from the date the Notice of Lien Sale/Declaration of Opposition is mailed to oppose the sale.
• An owner/interested party who opposes the sale must sign and return the Declaration of Opposition to DMV.

If the vehicle is registered in another state, DMV notifies the appropriate agency of that state.

Step 3

If the sale is opposed DMV sends the lienholder a letter denying the lien sale application.

If the sale is not opposed DMV sends the lienholder a letter granting authorization to conduct the sale.

If the sale is opposed and the lienholder submits any of the items in the Declaration of Opposition section in this chapter DMV sends the lienholder a letter granting authorization to continue the sale.

Step 4

Upon receipt of authorization to conduct the sale from DMV, the lienholder must set the date of the sale.

Step 5

Twenty days prior to the sale, but not counting the day of the sale, the lienholder must send a Notice of Pending Lien Sale for Vehicle Valued Over $4,000 or From a Self-Service Facility (REG 280) (PDF) by certified mail, return receipt requested, to:

• The registered and legal owners of the vehicle (if registered in California).
• All persons known to have an interest in the vehicle.
• The DMV Lien Sale Unit.

Step 6

At least five days and not more than 20 days prior to the sale (not counting the day of the sale), the lienholder must advertise the sale in a newspaper of general circulation in the county where the lien sale will be conducted.

If there is no newspaper of general circulation published in the county, the notice of sale must be posted in three of the most public places in the town where the vehicle is located and at the place where the vehicle is to be sold.

This notice must be posted for 10 consecutive days prior to and including the day of sale.

Step 7

The lienholder must have the vehicle available for inspection at a location easily accessible to the public for at least one hour before the sale. The vehicle must also be at the place of sale at the time and date specified on the REG 280.

Step 8

The lienholder must conduct the lien sale in a businesslike manner. Sealed bids are not allowed.

Step 9

After the sale, the lienholder must keep the vehicle for a 10-day redemption period. The registered or legal owner may redeem the vehicle by paying all costs and expenses, plus 12 percent interest (CC §3071(k)).

Step 10

After the redemption period, the lienholder must:

• Remove and destroy the license plates.
• Submit a completed Notice of Transfer and Release of Liability (REG 138) (PDF) to DMV within five days of the sale.
• Complete a Certification of Lien Sale for Vehicles Valued Over $4,000 or From a Self-Serve Storage Facility (REG 168) (PDF). If no one places a qualifying bid on the vehicle, the lienholder must complete the REG 168 as both the seller and buyer.

Step 11

Give the buyer the:

• REG 168.
• Certified or bulk mailing receipts.
• DMV authorization to conduct a lien sale or, if the lien sale was opposed, DMV authorization to continue the sale.

Step 12

Within 15 days of the sale, the lienholder must submit any excess fees with a copy of the REG 168 to:
DMV
Lien Sale Section, MS D143
PO Box 932317
Sacramento, CA 94232-3170

All notices must specify the make, year model, vehicle identification number, and engine number (motorcycles) for the vehicle.

The following must be submitted:

• A completed Application for Title or Registration (REG 343) (PDF) or a Report of Vehicle to be Dismantled (REG 42) (PDF).
• A Certification of Lien Sale for Vehicle Valued Over $4,000 or From a Self–Serve Storage Facility (REG 168) (PDF) completed by the lienholder or their agent. If there is no buyer, the lienholder completes the REG 168 as both the seller and buyer.
• The certified mailing or bulk postal receipts (attached to the REG 168).
• DMV authorization to conduct a lien sale or, if the lien sale was opposed, DMV authorization to continue the sale.
• A Verification of Vehicle (REG 31) (PDF), unless there is a vehicle record on the database.
• Other documents, as needed, such as bill(s) of sale and the odometer mileage disclosure on the Vehicle/Vessel Transfer and Reassignment Form (REG 262).
• A smog certification, if appropriate.
• Fees due. See the Determining Fees section in this chapter.
• Verify that:
  • The 10-day redemption period has passed before accepting the lien sale application.
  • There is a postal receipt for each party listed on the DMV authorization to conduct/continue a lien sale.
  • The post mark date on the postal receipts is at least 20 days prior to the sale date.
  • The Publication of Sale section on the REG 168 was properly completed.
  • There is a bill(s) of sale to show a chain of ownership from the buyer listed in the Certificate of Sale section on the REG 168 to the current owner, if necessary.
    

18.145 Vehicles Valued at $4,000 or Less (CC §3072)

The lienholder is not required to apply to DMV for authorization to conduct a lien sale for vehicles valued at $4,000 or less. The Lien sale process for a vehicle valued at $4,000 or less is as follows:

Step 1

Within 15 days of the date the lien arises (date the public agency impounded the vehicle or private property owner authorized the tow), or within 30 days of the date the lien arises for other reasons, the lienholder must submit a completed Registration Information Request for Lien Sale (INF 1126) (PDF) and the nonrefundable processing fee to DMV to obtain a printout of the vehicle record using the vehicle identification number (VIN).

Note A vehicle with a missing VIN must be referred to the CHP before a vehicle record is released to the lienholder.

Step 2

Immediately upon receipt of the vehicle record information, and at least 31 days, but not more than 41 days, prior to the sale date, the lienholder must send:

• A Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less (REG 668) (PDF) and a return envelope, pre-addressed to DMV, by certified mail with return receipt requested, or by U.S. Postal Service Certificate of Mailing to:
  • The registered owner.
  • The legal owner.
  • Any known interested parties.
• REG 668 by certified mail to DMV.

Note When there are multiple Notice of Transfer and Release of Liability (REG 138) forms on the vehicle record, only the buyer noted on the last REG 138 must be notified. If there is no vehicle record, the REG 668 must be sent to DMV and any known interested parties.

Step 3

The owner(s) and any interested parties have 10 days from the date the REG 668 is mailed to oppose the sale. The Declaration of Opposition on the REG 668 must be signed and returned to DMV to oppose the sale.

Step 4

If the sale is opposed DMV sends the lienholder letter denying the lien sale application.

If the sale is opposed and the lienholder submits any of the items in Declaration of Opposition section in this chapter DMV sends the lienholder a letter granting authorization to continue the sale.

Step 5

At least 10 consecutive days prior to, and including the sale date, the lienholder must post a REG 668 in a conspicuous place on the premises of the business office of the lienholder. If the sale is at another site, the lienholder must also post a REG 668 at the sale site.

Step 6

The lienholder must have the vehicle available for inspection at a location easily accessible to the public for at least one hour before the sale. The vehicle must also be at the place of sale at the time and date specified on the REG 668.

Step 7

The lienholder must conduct the sale in a businesslike manner. Sealed bids are not allowed.

Step 8

After the sale, the lienholder must:

• Remove and destroy the license plates.
• Submit a completed Notice of Transfer and Release of Liability (REG 138) (PDF) to DMV within five days of the sale.
• Complete a Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF). If no one places a qualifying bid on the vehicle, the lienholder must complete the REG 168A as both the seller and the buyer.

Step 9

There is no redemption period. The buyer may take immediate possession of the vehicle.

Step 10

The lienholder must give the buyer the:

• REG 168A.
• Printout of the DMV record.
• Certified mailing and/or certificate of mailing receipts (attached to the REG 168A).
• DMV authorization to continue the sale, if the lien sale was opposed.

All notices must specify the vehicle make, year model, VIN, and engine number (for motorcycles).

The following must be submitted:

• An Application for Title or Registration (REG 343) (PDF) or a Report of Vehicle to be Dismantled (REG 42) (PDF), as appropriate.
• A properly completed REG 168A completed by the lienholder or agent. If there is no buyer, the lienholder completes the REG 168A as both the seller and buyer.
• The certified mailing or bulk postal receipts (attached to the REG 168A).
• The DMV printout of the vehicle record.
• If the lien sale was opposed, the DMV Authorization to Continue the sale.
• A Verification of Vehicle (REG 31) (PDF), unless there is a vehicle record on the database.
• Other documents, as needed, such as bill(s) of sale and odometer mileage disclosure on the Vehicle/Vessel Transfer and Reassignment Form (REG 262).
• A smog certification, if appropriate.
• Fees due. See the Determining Fees section in this chapter.

The procedures below must be followed:

• Verify that:
  • The Registration Information Request for Lien Sale (INF 1126) form was submitted within 15 days of the date the lien arose. If not, the lien sale is invalid.
  • There are postal receipts for DMV, registered/legal owner, buyer noted on the last REG 138, and pending registered owners shown on the DMV printout (obtained to start the sale).
  • The postmark date on each of the postal receipts is at least 31 days, but not more than 41 days, prior to the sale date.
  • There are bill(s) of sale to provide a chain of ownership from the buyer listed in the Certificate of Sale section on the REG 168 to the current owner, if necessary.

18.140 Vehicle Identification Number Missing at the Time of Removal on Low-Value Vehicles Removed for Reasons Other Than Abandonment (VC §22851.2 (b))

If the condition of the vehicle is such that there is no means of determining ownership, the public agency that removed the vehicle may give authorization to dispose of the vehicle on the Public Agency Authorization to Dispose of a Vehicle Valued at $500 or Less to a Scrap Iron Processor or Dismantler (REG 462) (PDF).

If authorization for disposal is not issued, a vehicle identification number must be assigned prior to continuing the procedures in Chapter 7, Miscellaneous Originals.

18.135 Storage Lien Limitation (VC §22851)

The maximum number of days for a storage lien on a vehicle placed in storage by a law enforcement agency is 60 days. The storage lien may be extended to a period not exceeding 120 days if an application for lien sale is submitted:

• Within 15 days from the date the lien arises for vehicles valued at $4,000 or less.
• Within 30 days from the date the lien arises for vehicles valued over $4,000 or stored at a self-storage facility.

18.130 Seizure and Sale of Vehicles (VC §§9800 and 980l)

Unpaid registration, vehicle license, transfer, parking violation fees, and use tax constitute a lien on a vehicle by DMV. DMV may seize and sell the vehicle in order to collect unpaid fees.

The following must be submitted:

• An Application for Title or Registration (REG 343) (PDF).
• A Verification of Vehicle (REG 31) (PDF).
• A Notice of Seizure and Sale (INV 57) (PDF) with the mailing receipt(s) attached, for certified letter(s) to the registered owner and legal owner/lienholder of record, if any.
• A completed bill of sale on the Vehicle/Vessel Transfer and Reassignment Form (REG 262).
• The number of the applicant’s credit receipt for the amount of the bid shown on the application. If the applicant has lost the credit receipt, payment will be verified by DMV headquarters.
• The odometer mileage disclosure on a REG 262.
• A smog certification, if appropriate.
• Fees due.

Note A REG 262 from DMV to the buyer must be part of the application, if DMV becomes the owner and subsequently sells the vehicle. DMV may withhold use tax, if due, from the proceeds of the sale.

18.125 Request for Post-Storage Hearing of Abandoned Low-Value Vehicles (VC §§22851.3e and 22851.3g )

If the recipient of the Notice of Intent to Dispose of a Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 684) (PDF) or a written notice from the public agency wishes to stop the disposal or dispute removal, they must request a post-storage hearing in person, in writing, or by telephone within 10 days of the date the notice was mailed.

• The requested hearing must be conducted by the public agency within 48 hours of the request, excluding weekends and holidays.
• If the recipient disagrees with the decision, it may be reviewed pursuant to Government Code §11523.
• The vehicle in question cannot be disposed of during the time the decision is being reviewed.

18.120 Re-registration of Vehicles Removed by a Local Abatement Procedure (VC §§22661(f). 22711)

A vehicle removed under the abatement procedure may not be reconstructed or made operable unless it qualifies for Horseless Carriage or Historical Vehicle License Plates (VC §5004).

Exception: Local authorities may give abandoned vehicles to a correctional institution if:

• A local ordinance has an abatement program under VC §22710 (Service Authority for Abatement of Abandoned Vehicles).
• All reporting requirements have been met.

The institution must have a program under the consent of the Director of Corrections for their inmates to restore and rebuild donated salvageable and abandoned vehicles.

18.115 Re-registration of Low-Value Vehicles Removed for Reasons Other Than Abandonment

A vehicle disposed of to a licensed dismantler or scrap iron processor pursuant to VC §22851.2 cannot be reconstructed or made operable unless it is a vehicle that qualifies for either Horseless Carriage License Plates or Historical Vehicle License Plates pursuant to VC §5004.

18.110 Registration Services

Lien sale applications completed by a registration service must contain the registration service’s Occupational License number (OL#). If the registration service’s OL# is not shown on the application, the lien sale documents will be returned for correction.