Liens Overview

• Arizona paper title
• T&R Application (Single), form #96-0236
• Lien Filing, form #48-9902
• Title Transfer (Bill of Sale), form #38-1306

On the paper title, T&R Application, or Title Transfer form, if no lien is to be recorded, the word 'NONE' may be written, or the field can be left blank.

Information Required to Add a Lien

To record a lien, the following is required:

• Name of lienholder(s)
  • If there are joint lienholders, a legal status* must be used between each
    • A complete application is required for each lien
  • The system will allow a combination of up to three lienholders, per vehicle
• EIN
• Mailing address of the lienholder(s)
• Lien date

Adding an Additional Lien

The additional lienholder will need to provide any of the documents listed above, except the Title Transfer (Bill of Sale), since a transfer of ownership is not taking place, only adding a lien.

Any information placed in the lienholder information area on the back of a title, MCO, or Title Transfer (Bill of Sale), form #38-1306 is recognized as a bona fide placement of a lien against the vehicle. This information cannot be 'overlooked' and must have a 'paper trail' supporting any changes.

Verbal or clerk notations are not acceptable. A lien release will be required.

On rare occasions a customer will place information in the lienholder block on the required documentation to add a lien while standing at the window, see an upline approver.

As Arizona is an Electronic Lien & Title (ELT) state, all financial institutions are required to send the lien release electronically to the Division. Once received, MAX automatically clears the lien from the Arizona vehicle title record.

If a paper lien release is submitted for an ELT lien release, view the Lien Release Exceptions section for more information.

There may be instances where the financial institutions will send a paper lien release to the owner of the vehicle when the lienholder was not required to be an ELT.

If there are additional valid liens, the title will be electronically delivered (or mailed) to the next lienholder of record. When there are no additional valid liens, the lienholder will mail a notification to the registered owner of the lien's release.

When a lien is released electronically, the information that needs to match is the Title Number and Title Issue Date. The Title Source does not factor in to the lien release.

Since an individual (person) lienholder does not participate in the ELT program, a paper lien release will be provided to the vehicle owner.

Only the paper lien release is required for documentation to remove the lien, a paper title is not required. However, if a paper title exists, it will be considered invalid after the release is completed.

Documents for a Non-Electronic Lien Release

The lien clearance document must contain:

• A complete description of the vehicle
• A notation that the lien is considered paid
• The printed name and signature of the lienholder (or lienholder agent)
• When the record displays more than one lienholder the signature requirements are dependent on the legal status chosen by the lienholders, policy 8.4.1 Lien Filing
• Initials are not acceptable

Policy 8.4.2 Lien Clearance Requirements: a list of acceptable documentation.

Deceased Individual Lienholder

When an individual lienholder is deceased, a properly completed Non-Probate Affidavit, form #32-6901 is acceptable with the signature of the successor on the lien release or the personal representative (or executor) may submit a court order (appointing the personal representative) and sign the lien release for the deceased person.

To remove a non-electronic lien from an Arizona title, with a lien release, the legal status between the owners determines the number of required signatures.

View the Signature Requirements Chart to verify signatures per their legal status.

Signature Requirements Chart

A paper lien release may be accepted for electronic or non-electronic liens, with approval from an upline approver, when both of the following has been completed and submitted:

• The owner of the vehicle has made a diligent effort to contact the electronic lienholder
• The paper lien release document contains all the required information, view the Documents for a Non-Electronic Lien Release section for the list

Proper Lien Release Document NOT Submitted

When the customer does not present an acceptable paper lien release document, the Division may remove a lien if the customer provides satisfactory proof of payment in full and an affidavit that states:

• The owner has made a diligent search to locate the individual or electronic lienholder
• The steps taken in the search (e.g., certified letters sent, research performed, persons contacted, etc.)
  • The use of certified registered mail with a return receipt is acceptable proof of search
• That after the search the lienholder could not be found, the customer shall apply for a Bonded Title

The Division considers the following as satisfactory proof of payment in full:

• Receipts, issued by the lienholder, totaling the amount owed (only when the lien amount is recorded on the title)
• Cancelled checks totaling the amount owed (only when the lien amount is recorded on the title)
  • The receipt or cancelled check does not need to identify the vehicle
• Lender copy of the original lien instrument when it provides:
  • A complete description of the vehicle (year, make, and VIN)
  • The lien amount as recorded on the title
    • The lien amount is required only when the lien amount is recorded on the title
  • The date the lien was paid in full
  • A notation or stamp that indicates the lien is paid
  • The full signature of the lienholder or the lienholder agent

Only the paper lien release or other acceptable documentation is required for documentation to remove the lien, a paper title is not required. However, if a paper title exists, it will be considered invalid after the release is completed.

A lien that has remained on an Arizona vehicle title record for more than 12 years or more may be removed without first receiving a lien clearance. This does not apply when the vehicle is a:

• Travel trailers
• Motor homes
• Mobile homes
• Commercial vehicles

In applying the 12-year provision, the lien date will be the determining factor, regardless of when the title was issued or processed.