California Vehicle or Vessel in Storage

 

3/23/17

We now have a couple options in California, we can process the lien and conduct a sale as instructed by DMV or the vehicle can be towed using the statute 21702.5 Section (e)

21702.5.

  

(a) Any lien on a vehicle or vessel subject to registration or identification under the Vehicle Code that has attached and is set forth in the documents of title to the vehicle or vessel shall have priority over any lien created pursuant to this chapter.

 

(b) Any lien created pursuant to this chapter on a vehicle or vessel subject to registration or identification under the Vehicle Code shall be enforced in accordance with Section 3071 of the Civil Code, in the case of a vehicle, or Section 503 of the Harbors and Navigation Code, in the case of a vessel, and not as prescribed in Sections 21705 to 21711, inclusive.

 

(c) Any lien created pursuant to this chapter on a vehicle or vessel subject to registration or identification under the Vehicle Code shall not include any charges for rent, labor, or other services incurred pursuant to the rental agreement, accruing more than 60 days after the date the lien imposed pursuant to this chapter attaches, as set forth in Section 21705, and before application is made for authorization to conduct the lien sale pursuant to the requirements of Section 3071 of the Civil Code or Section 503 of the Harbors and Navigation Code.

 

(d) Any proceeds from a lien sale shall be disposed of pursuant to Section 3073 of the Civil Code, in the case of a vehicle, or Section 507.5 of the Harbors and Navigation Code, in the case of a vessel.

 

(e) In addition to the right to foreclose on the vehicle, watercraft, or trailer, the owner may have the vehicle, watercraft, or trailer towed from the premises if rent and other charges have not been paid for 60 days and the notice required in Section 21703 has been sent. Not less than 10 days before having the vehicle towed, the owner shall send notice by first-class mail with certificate of mailing to the occupant’s last known address stating the name, address, and telephone number of the towing company and the street address of the location where the towed property can be redeemed. When the towing company takes possession of the vehicle, watercraft, or trailer, the owner shall not be liable for the property or damage to the property. The towing company shall be in compliance with Section 12520 of the Vehicle Code, and shall act in accordance with Section 22658 of the Vehicle Code in removing the property.

 

Vehicle in Self Storage

All vehicles in Self Storage must be processed with the value over $4000, even when they look like this one. 

 


http://www.dmv.ca.gov/pubs%2Fbrochures/howto/htvr8.htm

 

How To Conduct a Lien Sale for a Vehicle Stored at a Self Service Storage Facility or Valued Over 4,000

 

You Always Need...

Application for Authorization for Lien Sale (REG 656)

Certification of Lien Sale (REG 168)

Application for Title or Registration (REG 343)

Notice of Pending Lien Sale (REG 280)

DMV’s letter of authorization to conduct the lien sale

Postal receipts of the notices sent

Fees

Notice of Transfer and Release of Liability

You may also need 

(see details below)...

Verification of Vehicle (REG 343)

Notice of Unsuccessful Court Service (REG 659)

Vehicle/Vessel Transfer and Reassignment Form –Odometer Disclosure Statement (REG 262)

Smog certification

 

  

General Information

 

If a person has repaired, furnished supplies/materials for, or towed or stored a vehicle and has not been paid for the services rendered, that person has a lien against the vehicle. The lien may be satisfied by getting a court judgment or by selling the vehicle through a lien sale process as outlined in the California Civil Code. To conduct a lien sale, the person/lienholder must have possession of the vehicle.

 NOTE: A salvage pool cannot conduct a lien sale to obtain title to a vehicle.

 The lien arises (becomes effective) at the time the registered owner is presented with a written statement of charges for completed work or services. However, if possession is the result of a public agency or private property impound, the lien arises when the vehicle is transported (towed).

 The legal owner must be notified before the service may be performed if the amount of any repairs or service exceeds $750 or the storage charges exceed $400 ($500 for vehicles valued over $4,000).

 Before conducting a lien sale, the lienholder must determine the value of the vehicle. If the vehicle’s value is $4,000 or less, the registered and legal owners of record will be notified by the party conducting the lien (See “How To: Conduct a Lien Sale for a Vehicle Valued $4,000 or Less.”) If the vehicle’s value is greater than $4,000, DMV notifies all interested parties. You can call (916) 657-7617 between 8 a.m. and 5 p.m. if you have questions regarding lien sales.

 NOTE: For lien accrual information, refer to Civil Code §§3068 and 3068.1.

 

Requesting Authorization To Conduct a Lien Sale for a Vehicle Valued Over $4,000

 You must apply to the DMV for authorization to conduct a lien sale, according to the provisions of Civil Code §3071. A fee must accompany your application. This fee may be recovered by the lienholder as follows:

 From the buyer at the time of the lien sale

or

From the debtor if the vehicle is redeemed.

Your application for authorization must contain the vehicle identification number. If you cannot locate the number, you may request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or an authorized DMV employee.

 

Storage Lien Limitation

The period of time for a storage lien may not exceed 60 days, unless an application for authorization to conduct the lien sale is filed within 30 days after the lien arises, and then it may be for a period not to exceed 120 days (pursuant to California Vehicle Code §22851). Other liens for towing or contracted services (such as mechanical repairs) apply, regardless of the period allowed. Any vehicle stored at a self-storage facility for which a lien has incurred shall be sold under the provisions of Civil Code §3071. (if the vehicle was stored by the registered owner, we have entered into a contract for services, storage of vehicle, so the limitation should not apply)

 

Notification of Your Request

 

When DMV receives a request to conduct a lien sale for a vehicle valued over $4,000, the department shall notify the:

 

Registered and legal owners and any interested parties by certified mail

or

Out-of-state vehicle registry, if the vehicle bears registration from another state.

Authority To Conduct the Lien Sale

 

You must wait for authorization from DMV before proceeding with the lien sale process. Allow 30–40 days to receive authorization.

 

Can Someone Oppose the Lien Sale?

 

Any person having an interest in the vehicle may declare opposition to the sale. DMV will notify you if a declaration of opposition is filed and the sale canceled. You may then secure your lien:

 

Through judicial proceeding. Service may be effected by certified mail or in person by a marshal, sheriff, or certified process server (process servers are registered by the county clerk of the respective counties). This must be done within 30 days from the date on the denial letter.

or

By obtaining a release of interest signed by the person(s) who declared opposition.

or

By filing a Notice of Unsuccessful Service with DMV when service cannot be effected on the person opposing the sale. Evidence of unsuccessful service is required.

When DMV receives one of the listed items, DMV will send authorization to continue with the sale and notify the person who opposed the sale of the authorization.

 

Conducting a Lien Sale

 

Step 1. Twenty days before the sale date you must provide by certified mail (return receipt requested) a Notice of Pending Lien Sale (REG 280) to each of the following:

 

Legal owner, if any

Registered owner

Any interested parties

DMV, Lien Sale Unit, P.O. Box 932317, Sacramento, CA 94232-3170.

Step 2. At least five days, but not more than 20 days before the sale (not counting the sale date), you must give notice of the sale by advertising the sale for one day in a newspaper of general circulation in the county in which the vehicle is located.

 

If there is no newspaper published in the county, notice shall be given by posting the Notice of Sale:

 

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 for 10 consecutive days prior to and including the day of the sale.

All notices shall specify the make, year model, vehicle identification number, license number, and state of registration, if available. For motorcycles, the engine number must also be specified. The specific date, exact time, and place of sale must also be included.

 

Step 3. The vehicle must be available for inspection at a location easily accessible to the public for at least one hour before the sale and must be at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. If the auction price exceeds the amount of the lien, the excess amount must be sent to the Lien Sale Unit within 15 days after the sale date.

 

Step 4. After the sale, a redemption period of 10 days (not counting the date of sale) must be allowed before the purchaser can take possession of the vehicle and apply for transfer of ownership.

 

Step 5. You are required to keep the vehicle for a 10-day redemption period. After this redemption period, give the buyer:

 

A Certification of Lien Sale (REG 168) completed and signed by you.

A copy of the authorization letter from DMV to conduct the sale (REG 338).

Postal receipts for the notices you sent.

Step 6. The license plates must be removed and destroyed at the time of the sale, and you must submit to DMV within five days of the sale a Notice of Transfer and Release of Liability.

 

What if No One Places a Qualifying Bid on the Vehicle?

 

Complete the Certification of Lien Sale (REG 168) showing you as the buyer (new owner), as well as the seller. Should you sell the vehicle following the lien sale where you were the buyer, you will be required to give the buyer a bill of sale in addition to the documents listed for registering the vehicle. See note below regarding payment of fees.

 

Registering the Vehicle

 

The following items are required to register a vehicle sold or retained at lien sale.

 

Application for Title or Registration (REG 343) completed and signed by the new owner.

Certification of Lien Sale (REG 168) completed and signed by the lienholder or agent.

A copy of the letter from DMV authorizing the lien sale, with the postal receipts attached.

Verification of Vehicle (REG 343), if there is no California registration record.

Smog certification, if applicable.

Applicable registration and/or transfer fees and use tax.

Vehicle/Vessel Transfer and Reassignment Form – Odometer Disclosure Statement (REG 262) is required for vehicles less than 10 years old.

Other documents as needed, such as bill(s) of sale.

NOTE: Many times a vehicle that is involved in a lien sale is not currently registered. If the vehicle registration expired while in your possession, the new owner has 20 days from the lien sale purchase date to pay registration fees without penalties, or to file a certification of planned non-operation. The buyer may be subject to registration fees and penalties in other instances. The lienholder should advise the buyer in writing of any fees that may be required to register the vehicle.

 

Most vehicles require a smog inspection at the time of transfer. If applicable, provide a smog certification to the buyer.

 

To access service anytime:

 

Call 1-800-777-0133 for appointments; office services, hours, and locations; DMV forms, handbooks, and brochures; answers to frequently asked questions; and general driver license and vehicle registration information.

 

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CIVIL CODE - CIV

DIVISION 3. OBLIGATIONS [1427 - 3272.9]  ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. )

PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3272.9]  ( Part 4 enacted 1872. )

TITLE 14. LIEN

 

 

3071.  (a) A lienholder shall apply to the department for the issuance of an authorization to conduct a lien sale pursuant to this section for any vehicle with a value determined to be over four thousand dollars ($4,000). A filing fee shall be charged by the department and may be recovered by the lienholder if a lien sale is conducted or if the vehicle is redeemed. The application shall be executed under penalty of perjury and shall include all of the following information:

(1) A description of the vehicle, including make, year model, identification number, license number, and state of registration. For motorcycles, the engine number also shall be included. If the vehicle identification number is not available, the department shall request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or departmental employee before accepting the application.

(2) The names and addresses of the registered and legal owners of the vehicle, if ascertainable from the registration certificates within the vehicle, and the name and address of any person whom the lienholder knows, or reasonably should know, claims an interest in the vehicle.

(3) A statement of the amount of the lien and the facts that give rise to the lien.

(b) Upon receipt of an application made pursuant to subdivision (a), the department shall do all of the following:

(1) Notify the vehicle registry agency of a foreign state of the pending lien sale, if the vehicle bears indicia of registration in that state.

(2) By certified mail, send a notice, a copy of the application, and a return envelope preaddressed to the department to the registered and legal owners at their addresses of record with the department, and to any other person whose name and address is listed in the application.

(c) The notice required pursuant to subdivision (b) shall include all of the following statements and information:

(1) An application has been made with the department for authorization to conduct a lien sale.

(2) The person has a right to a hearing in court.

(3) If a hearing in court is desired, a Declaration of Opposition form, signed under penalty of perjury, shall be signed and returned to the department within 10 days of the date that the notice required pursuant to subdivision (b) was mailed.

(4) If the Declaration of Opposition form is signed and returned to the department, the lienholder shall be allowed to sell the vehicle only if he or she obtains a court judgment, if he or she obtains a subsequent release from the declarant or if the declarant, cannot be served as described in subdivision (e).

(5) If a court action is filed, the declarant shall be notified of the lawsuit at the address shown on the Declaration of Opposition form and may appear to contest the claim.

(6) The person may be liable for court costs if a judgment is entered in favor of the lienholder.

(d) If the department receives the Declaration of Opposition form in the time specified, the department shall notify the lienholder within 16 days of the receipt of the form that a lien sale shall not be conducted unless the lienholder files an action in court within 30 days of the department’s notice under this subdivision. A lien sale of the vehicle shall not be conducted unless judgment is subsequently entered in favor of the lienholder or the declarant subsequently releases his or her interest in the vehicle. If a money judgment is entered in favor of the lienholder and the judgment is not paid within five days after becoming final, then the judgment may be enforced by lien sale proceedings conducted pursuant to subdivision (f).

(e) Service on the declarant in person or by certified mail with return receipt requested, signed by the declarant or an authorized agent of the declarant at the address shown on the Declaration of Opposition form, shall be effective for the serving of process. If the lienholder has served the declarant by certified mail at the address shown on the Declaration of Opposition form and the mail has been returned unclaimed, or if the lienholder has attempted to effect service on the declarant in person with a marshal, sheriff, or licensed process server and the marshal, sheriff, or licensed process server has been unable to effect service on the declarant, the lienholder may proceed with the judicial proceeding or proceed with the lien sale without a judicial proceeding. The lienholder shall notify the department of the inability to effect service on the declarant and shall provide the department with a copy of the documents with which service on the declarant was attempted. Upon receipt of the notification of unsuccessful service, the department shall send authorization of the sale to the lienholder and send notification of the authorization to the declarant.

(f) Upon receipt of authorization to conduct the lien sale from the department, the lienholder shall immediately do all of the following:

(1) At least five days, but not more than 20 days, prior to the lien sale, not counting the day of the sale, give notice of the sale by advertising once in a newspaper of general circulation published in the county in which the vehicle is located. If there is no newspaper published in the county, notice shall be given by posting a Notice of Sale form in three of the most public places in the town in which the vehicle is located and at the place where the vehicle is to be sold for 10 consecutive days prior to and including the day of the sale.

(2) Send a Notice of Pending Lien Sale form 20 days prior to the sale but not counting the day of sale, by certified mail with return receipt requested, to each of the following:

(A) The registered and legal owners of the vehicle, if registered in this state.

(B) All persons known to have an interest in the vehicle.

(C) The department.

(g) All notices required by this section, including the notice forms prescribed by the department, shall specify the make, year model, vehicle identification number, license number, and state of registration, if available, and the specific date, exact time, and place of sale. For motorcycles, the engine number shall also be included.

(h) Following the sale of a vehicle, the person who conducts the sale shall do both of the following:

(1) Remove and destroy the vehicle’s license plates.

(2) Within five days of the sale, submit a completed “Notice of Release of Liability” form to the Department of Motor Vehicles.

(i) The Department of Motor Vehicles shall retain all submitted forms described in paragraph (2) of subdivision (h) for two years.

(j) No lien sale shall be undertaken pursuant to this section unless the vehicle has been available for inspection at a location easily accessible to the public for at least one hour before the sale and is at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. The lienholder shall conduct the sale in a commercially reasonable manner.

(k) Within 10 days after the sale of any vehicle pursuant to this section, the legal or registered owner may redeem the vehicle upon the payment of the amount of the sale, all costs and expenses of the sale, together with interest on the sum at the rate of 12 percent per annum from the due date thereof or the date when that sum was advanced until the repayment. If the vehicle is not redeemed, all lien sale documents required by the department shall then be completed and delivered to the buyer.

(l) Any lien sale pursuant to this section shall be void if the lienholder does not comply with this chapter. Any lien for fees or storage charges for parking and storage of a motor vehicle shall be subject to Section 10652.5 of the Vehicle Code.

(Amended by Stats. 2001, Ch. 127, Sec. 1. Effective July 30, 2001.)

 

3071.5.  (a) A registered or legal owner of a vehicle in the possession of a person holding a lien under this chapter may release any interest in the vehicle after the lien has arisen. The release shall be dated when signed and a copy shall be given at the time the release is signed to the person releasing the interest.

(b) The release shall be in at least 12-point type and shall contain all of the following information in simple, nontechnical language:

(1) A description of the vehicle, including the year and make, the engine or vehicle identification number, and the license number, if available.

(2) The names and addresses of the registered and legal owners of record with the Department of Motor Vehicles, if available.

(3) A statement of the amount of the lien and the facts concerning the claim which gives rise to the lien.

(4) A statement that the person releasing the interest understands that (i) he has a legal right to a hearing in court prior to any sale of the vehicle to satisfy the lien and (ii) he is giving up the right to appear to contest the claim of the lienholder.

(5) A statement that (i) the person releasing the interest gives up any interest he may have in the vehicle and (ii) he is giving the lienholder permission to sell the vehicle.

(c) The release required by this section shall not be filed with the department in connection with any transfer of interest in a vehicle.

(Amended by Stats. 1978, Ch. 1005.)

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HARBORS AND NAVIGATION CODE - HNC

DIVISION 3. VESSELS [399 - 786]  ( Division 3 enacted by Stats. 1937, Ch. 368. )

CHAPTER 2. Civil Actions and Liens [450 - 509]  ( Heading of Chapter 2 amended by Stats. 1970, Ch. 1341. )

 

ARTICLE 4. Boaters Lien Law

 

 

503.  (a) A lienholder shall apply to the department for the issuance of an authorization to conduct a lien sale pursuant to the provisions of this section for any vessel with a value determined to be over one thousand five hundred dollars ($1,500). A fee shall be charged by the department and may be recovered by the lienholder if a lien sale is conducted or if the vessel is redeemed. The application shall be executed under penalty of perjury and shall include all of the following information:

(1) A description of the vessel, including make, hull identification number, and state of registration, to the extent available.

(2) The names and addresses of the registered and legal owners of the vessel, if ascertainable from the registration certificate within the vessel, and the name and address of any person whom the lienholder knows or reasonably should know claims a proprietary interest in the vessel.

(3) A statement of the amount of the lien and the facts which give rise to the lien. The statement shall include, as a separate item, an estimate of any additional storage costs accruing pending the lien sale.

(b) Upon receipt of an application made pursuant to subdivision (a), the department shall within 15 days thereafter do the following:

(1) Notify the vessel registry agency of a foreign state of the pending lien sale, if the vessel bears indicia of registration in that state.

(2) By mail, send a notice, a copy of the application, and a return envelope preaddressed to the department to the registered and legal owners at their addresses of record with the department, and to any other person whose name and address is listed in the application.

(3) A vessel registration stop order or title transfer stop order shall be applied by the department at the time the lien claimant requests authorization to conduct the sale.

(4) Notify the applicant of any outstanding property tax lien on the vessel of which the department has been notified pursuant to subdivision (b) of Section 3205 of the Revenue and Taxation Code. The notice required by this paragraph shall identify the county in which any outstanding lien is held.

(c) The notice required pursuant to subdivision (b) shall include all of the following statements:

(1) An application has been made with the department for authorization to conduct a lien sale and the department has placed a vessel registration stop order or title transfer stop order on the vessel.

(2) Each person to whom notice is sent pursuant to subdivision (b) is entitled to a hearing in court if that person so desires.

(3) If a hearing in court is desired, a declaration of opposition, signed under penalty of perjury, is required to be signed and returned to the department within 15 days of the date that the notice required pursuant to subdivision (b) was mailed.

(4) If the declaration of opposition is signed and returned to the department, the lienholder will be allowed to sell the vessel only if he or she obtains a court judgment or a subsequent release from the declarant.

(5) If a court action is filed, the declarant will be served by mail with legal process in the court proceedings at the address shown on the declaration of opposition and may appear to contest the claim.

(6) The person may be liable for court costs if a judgment is entered in favor of the lienholder.

(d) If the department receives the declaration of opposition in the time provided, the department shall notify the lienholder within 16 days of the receipt of the declaration of opposition that a lien sale shall not be conducted unless the lienholder files an action in court within 60 days of the notice. A lien sale of the vessel shall not be conducted unless judgment is subsequently entered in favor of the lienholder or the declarant subsequently releases his or her interest in the vessel.

(e) Service of legal process on the declarant, with return receipt requested signed by the declarant or an authorized agent of the declarant at the address shown on the declaration of opposition, shall be effective. Return of a declaration of opposition shall constitute consent by the declarant to service of legal process for the desired court hearing upon him or her in the foregoing manner. Notwithstanding subdivision (d) of Section 415.3 of the Code of Civil Procedure, if the lienholder has attempted service upon declarant by that method at the address shown on the declaration of opposition and the mail has been returned unclaimed, the department shall promptly authorize the sale.

(f) Upon receipt of authorization to conduct the lien sale, the lienholder shall do all of the following:

(1) At least 10 days, but not more than 30 days, prior to the lien sale, not counting the day of the sale, give notice of the sale by advertising once in a newspaper of general circulation published in the county in which the vessel is located. If there is no newspaper published in the county, notice shall be given by posting a notice of sale form in three of the most public places in the area in which the vessel is located and at the place where the vessel is to be sold for 10 consecutive days prior to and including the day of the sale.

(2) Send a notice of pending lien sale 20 days prior to the sale, but not counting the day of sale, by mail with return receipt requested, to each of the following:

(A) The registered and legal owners of the vessel, if registered in this state.

(B) All persons known to have an interest in the vessel.

(C) The department.

(g) Upon receipt of the notice, the department shall mark its records and thereafter notify any person having a proprietary interest in the vessel that there is a pending lien sale and that title will not be transferred until the lien is satisfied or released.

(h) All notices required by this section, including the notice forms prescribed by the department, shall specify the make, hull identification number, and state of registration, if available, and the specific date, exact time, and place of sale.

(Amended by Stats. 1994, Ch. 940, Sec. 1. Effective January 1, 1995. Operative July 1, 1995, by Sec. 6 of Ch. 940.)