Words used in this chapter which are defined in Division 1 of the Vehicle Code shall have the same meaning as in the Vehicle Code.
Chapter 6.5Liens on Vehicles
Section § 3067
This section says that any terms used in this chapter that are also defined in the Vehicle Code will have the same meanings as they do in that code.
Vehicle Code defined terms meaning of words interpretation shared definitions cross-referencing consistent terminology legal definitions definition alignment statutory definitions
Section § 3067.1
The Department of Motor Vehicles is responsible for creating the forms required by this chapter. These forms, including any notices and declarations, must use simple, easy-to-understand language.
All forms required pursuant to the provisions of this chapter shall be prescribed by the Department of Motor Vehicles. The language used in the notices and declarations shall be simple and nontechnical.
Department of Motor Vehicles forms simple language nontechnical language notices declarations clarity accessibility document design ease of understanding
Section § 3067.2
This law section states that the rules in this chapter do not apply to manufactured homes, mobilehomes, or commercial coaches, as defined by certain sections of the Health and Safety Code, even if they need to be registered under that code.
This chapter shall not apply to any manufactured home, as defined in Section 18007 of the Health and Safety Code, to any mobilehome, as defined in Section 18008 of the Health and Safety Code, or to any commercial coach, as defined in Section 18001.8 of the Health and Safety Code, whether or not the manufactured home, mobilehome, or commercial coach is subject to registration under the Health and Safety Code.
manufactured home exceptions mobilehome exclusions commercial coach exclusions Health and Safety Code registration exemption specific definitions non-application clause transportable buildings housing regulations registered home exceptions
Section § 3068
This law explains that if someone makes repairs, provides supplies, or rents parking for a registered vehicle, they have a "lien," or a right to keep possession of that vehicle until they are paid. However, to keep that right, they must either apply to sell the vehicle or start a court case within 30 days. The vehicle must also be available for inspection and have a written record of the services provided. The law sets limits on how much can be charged for repairs or storage, unless the vehicle owner was informed and agreed beforehand. If someone tries to get back a vehicle that was held with a lien, the winning side in court can get a portion of their attorney fees paid, but only up to $1,750.
(a)CA Civil Law Code § 3068(a) Every person has a lien dependent upon possession for the compensation to which the person is legally entitled for making repairs or performing labor upon, and furnishing supplies or materials for, and for the storage, repair, or safekeeping of, and for the rental of parking space for, any vehicle of a type subject to registration under the Vehicle Code, subject to the limitations set forth in this chapter. The lien shall be deemed to arise at the time a written statement of charges for completed work or services is presented to the
registered owner or 15 days after the work or services are completed, whichever occurs first. Upon completion of the work or services, the lienholder shall not dismantle, disengage, remove, or strip from the vehicle the parts used to complete the work or services.
(b)Copy CA Civil Law Code § 3068(b)
(1)Copy CA Civil Law Code § 3068(b)(1) Any lien under this section that arises because work or services have been performed on a vehicle with the consent of the registered owner shall be extinguished and no lien sale shall be conducted unless either of the following occurs:
(A)CA Civil Law Code § 3068(b)(1)(A) The lienholder applies for an authorization to conduct a lien sale within 30 days after the lien has arisen.
(B)CA Civil Law Code § 3068(b)(1)(B) An action in court is filed within 30 days after the lien has arisen.
(2)CA Civil Law Code § 3068(b)(2) A person whose lien for work or services
on a vehicle has been extinguished shall turn over possession of the vehicle, at the place where the work or services were performed, to the legal owner or the lessor upon demand of the legal owner or lessor, and upon tender by the legal owner or lessor, by cashier’s check or in cash, of only the amount for storage, safekeeping, or parking space rental for the vehicle to which the person is entitled by subdivision (c).
(3)CA Civil Law Code § 3068(b)(3) Any lien under this section that arises because work or services have been performed on a vehicle with the consent of the registered owner shall be extinguished, and no lien sale shall be conducted, if the lienholder, after written demand made by either personal service or certified mail with return receipt requested by the legal owner or the lessor to inspect the vehicle, fails to permit that inspection by the legal owner or lessor, or his or her agent, within a period of time not sooner than 24 hours nor later than 72 hours
after the receipt of that written demand, during the normal business hours of the lienholder.
(4)CA Civil Law Code § 3068(b)(4) Any lien under this section that arises because work or services have been performed on a vehicle with the consent of the registered owner shall be extinguished, and no lien sale shall be conducted, if the lienholder, after written demand made by either personal service or certified mail with return receipt requested by the legal owner or the lessor to receive a written copy of the work order or invoice reflecting the services or repairs performed on the vehicle and the authorization from the registered owner requesting the lienholder to perform the services or repairs, fails to provide that copy to the legal owner or lessor, or his or her agent, within 10 days after the receipt of that written demand.
(c)CA Civil Law Code § 3068(c) The lienholder shall not charge the legal owner or lessor any amount for
release of the vehicle in excess of the amounts authorized by this subdivision.
(1)CA Civil Law Code § 3068(c)(1) That portion of the lien in excess of one thousand five hundred dollars ($1,500) for any work or services, or that amount, subject to the limitations contained in Section 10652.5 of the Vehicle Code, in excess of one thousand twenty-five dollars ($1,025) for any storage, safekeeping, or rental of parking space or, if an application for an authorization to conduct a lien sale has been filed pursuant to Section 3071 within 30 days after the commencement of the storage or safekeeping, in excess of one thousand two hundred fifty dollars ($1,250) for any storage or safekeeping, rendered or performed at the request of any person other than the legal owner or lessor, is invalid, unless prior to commencing any work, services, storage, safekeeping, or rental of parking space, the person claiming the lien gives actual notice in writing either by personal service or by
registered letter addressed to the legal owner named in the registration certificate, and the written consent of that legal owner is obtained before any work, services, storage, safekeeping, or rental of parking space are performed.
(2)CA Civil Law Code § 3068(c)(2) Subject to the limitations contained in Section 10652.5 of the Vehicle Code, if any portion of a lien includes charges for the care, storage, or safekeeping of, or for the rental of parking space for, a vehicle for a period in excess of 60 days, the portion of the lien that accrued after the expiration of that period is invalid unless Sections 10650 and 10652 of the Vehicle Code have been complied with by the holder of the lien.
(3)CA Civil Law Code § 3068(c)(3) The charge for the care, storage, or safekeeping of a vehicle which may be charged to the legal owner or lessor shall not exceed that for one day of storage if, 24 hours or less after the vehicle is placed in storage, a
request is made for the release of the vehicle. If the request is made more than 24 hours after the vehicle is placed in storage, charges may be imposed on a full, calendar-day basis for each day, or part thereof, that the vehicle is in storage.
(d)CA Civil Law Code § 3068(d) In any action brought by or on behalf of the legal owner or lessor to recover a vehicle alleged to be wrongfully withheld by the person claiming a lien pursuant to this section, the prevailing party shall be entitled to reasonable attorney’s fees and costs, not to exceed one thousand seven hundred fifty dollars ($1,750).
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Section § 3068.1
This law explains how a person or company has a right, called a lien, to hold onto a vehicle they towed, stored, or worked on until they get paid. This lien is created once they possess the vehicle, and possession means the vehicle is either in transit or work has started. If the vehicle is claimed within 24 hours, only one day's storage fee can be charged unless issues like the storage facility not being open occur. To retrieve a vehicle, proper documentation—like proof of ownership or insurance representation—is needed. This statute also details the time frame and conditions under which a lien can be enforced, depending on the vehicle's value. Specific rules apply if the vehicle's value is less than or over $4,000. There are limitations on how long a lien lasts, and the lien can be voided in certain situations, like overcharging for storage or not allowing vehicle inspections when requested. Lastly, lienholders are not liable for issues arising from the documents they rely on to release vehicles.
(a)Copy CA Civil Law Code § 3068.1(a)
(1)Copy CA Civil Law Code § 3068.1(a)(1) Every person has a lien dependent upon possession for the compensation to which the person is legally entitled for towing, storage, or labor associated with recovery or load salvage of any vehicle subject to registration that has been authorized to be removed by a public agency, a private property owner pursuant to Section 22658 of the Vehicle Code, or a lessee, operator,
or registered owner of the vehicle. The lien is deemed to arise on the date of possession of the vehicle. Possession is deemed to arise when the vehicle is removed and is in transit, or when vehicle recovery operations or load salvage operations have begun. A person seeking to enforce a lien for the storage and safekeeping of a vehicle shall impose no charge exceeding that for one day of storage if, 24 hours or less after the vehicle is placed in storage, the vehicle is released. If the release is made more than 24 hours after the vehicle is placed in storage, charges may be imposed on a full-calendar-day basis for each day, or part thereof, that the vehicle is in storage. If a request to release the vehicle is made and the appropriate fees are tendered and documentation establishing that the person requesting release is entitled to possession of the vehicle, or is the owner’s insurance representative, is presented within the initial 24 hours of storage, and the storage facility fails to comply with the
request to release the vehicle or is not open for business during normal business hours, then only one day’s charge may be required to be paid until after the first business day. A “business day” is any day in which the lienholder is open for business to the public for at least eight hours. If the request is made more than 24 hours after the vehicle is placed in storage, charges may be imposed on a full-calendar-day basis for each day, or part thereof, that the vehicle is in storage.
(2)CA Civil Law Code § 3068.1(a)(2) “Documentation” that would entitle a person to possession of the vehicle includes, but is not limited to, a certificate of ownership, vehicle registration, information in the possession of the lienholder including ownership information obtained from the Department of Motor Vehicles or a facially valid registration found within the vehicle, or a notarized letter or statement from the legal or registered owner providing authorization to release to a particular
person with a government-issued photographic identification card. Documentation that establishes that a person is the owner’s insurance representative includes, but is not limited to, a faxed letter or other letter from the owner’s insurance company. A lienholder is not responsible for determining the authenticity of documentation specifically described in this subdivision that establishes either a person’s entitlement to possession or that a person is the owner’s insurance representative.
(b)CA Civil Law Code § 3068.1(b) If the vehicle has been determined to have a value not exceeding four thousand dollars ($4,000), the lien shall be satisfied pursuant to Section 3072. Lien sale proceedings pursuant to Section 3072 shall commence within 15 days of the date the lien arises. No storage shall accrue beyond the 15-day period unless lien sale proceedings pursuant to Section 3072 have commenced. The storage lien may be for a period not exceeding 60 days if a completed notice of
a pending lien sale form has been filed pursuant to Section 3072 within 15 days after the lien arises. Notwithstanding this 60-day limitation, the storage lien may be for a period not exceeding 120 days if any one of the following occurs:
(1)CA Civil Law Code § 3068.1(b)(1) A Declaration of Opposition form is filed with the department pursuant to Section 3072.
(2)CA Civil Law Code § 3068.1(b)(2) The vehicle has an out-of-state registration.
(3)CA Civil Law Code § 3068.1(b)(3) The vehicle identification number was altered or removed.
(4)CA Civil Law Code § 3068.1(b)(4) A person who has an interest in the vehicle becomes known to the lienholder after the lienholder has complied with subdivision (b) of Section 3072.
(c)CA Civil Law Code § 3068.1(c) If the vehicle has been determined to have a value exceeding four thousand dollars ($4,000)
pursuant to Section 22670 of the Vehicle Code, the lien shall be satisfied pursuant to Section 3071. The storage lien may be for a period not exceeding 120 days if an application for an authorization to conduct a lien sale has been filed pursuant to Section 3071.
(d)Copy CA Civil Law Code § 3068.1(d)
(1)Copy CA Civil Law Code § 3068.1(d)(1) Any lien under this section shall be extinguished, and a lien sale shall not be conducted, if any one of the following occurs:
(A)CA Civil Law Code § 3068.1(d)(1)(A) The lienholder, after written demand to inspect the vehicle made by either personal service or certified mail with return receipt requested by the legal owner or the lessor, fails to permit the inspection by the legal owner or lessor, or his or her agent, within a period of time of at least 24 hours, but not to exceed 72 hours, after the receipt of that written demand, during the normal business hours of the lienholder. The legal owner or lessor shall comply with
inspection and vehicle release policies of the impounding public agency.
(B)CA Civil Law Code § 3068.1(d)(1)(B) The amount claimed for storage exceeds the posted rates.
(2)CA Civil Law Code § 3068.1(d)(2) “Agent” includes, but is not limited to, any person designated to inspect the vehicle by the request of the legal owner or lessor, in writing or by telephone, to the lienholder. A lienholder is not responsible for determining the authenticity of documentation establishing a person’s agency for the purposes of inspection of a vehicle.
(e)CA Civil Law Code § 3068.1(e) A lienholder shall not be liable for any claim or dispute directly arising out of the reliance on documentation specifically described in paragraph (2) of subdivision (a) for purposes of releasing a vehicle.
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Section § 3068.2
If someone owns a tow truck and has a legal claim called a lien on a vehicle, they can charge the vehicle's owner or the person leasing it for towing and storage costs for up to 120 days, minus any money from selling the vehicle. If the vehicle was sold or transferred before towing and the last owner wasn't responsible for its removal, they aren’t liable, as long as they followed certain rules. Instead, the new owner is liable if they knew about this transfer and were involved in abandoning the vehicle. Insurance companies won't be held responsible for these costs unless they specifically agreed to it at the transfer time.
(a)CA Civil Law Code § 3068.2(a) A tow truck operator who has a lien on a vehicle pursuant to Section 3068.1 has a deficiency claim against the registered owner of the vehicle if the vehicle is not leased or leased with a driver for an amount equal to the towing and storage charges, not to exceed 120 days of storage, and the lien sale processing fee pursuant to Section 3074, less the amount received from the sale of the vehicle.
(b)CA Civil Law Code § 3068.2(b) A tow truck operator who has a lien on a vehicle pursuant to Section 3068.1 has a deficiency claim against the lessee of the vehicle if the vehicle is leased without a driver for an amount equal to the towing and storage charge, not to exceed 120 days of storage, and the lien sale processing fee described in Section
3074, less the amount received from the sale of the vehicle.
(c)CA Civil Law Code § 3068.2(c) Storage costs incurred after the sale shall not be included in calculating the amount received from the sale of the vehicle.
(d)CA Civil Law Code § 3068.2(d) A registered owner who has sold or transferred the owner’s vehicle prior to the vehicle’s removal and who was not responsible for creating the circumstances leading to the removal of the vehicle is not liable for any deficiency under this section if that registered owner
has fulfilled the requirements of Section 5602 of the Vehicle Code.
The person identified as the transferee in the notice submitted to the Department of Motor Vehicles shall be liable for the amount of any deficiency only if that person received notice of the transfer and is responsible for the event leading to abandonment of the vehicle or requested the removal.
(e)CA Civil Law Code § 3068.2(e) Except as provided in Section 22524.5 of the Vehicle Code, if the transferee is an insurer and the transferor is its insured or the transferor’s agent or representative, the insurer shall not be liable for any deficiency, unless the insurer agrees at the time of the transfer, to assume liability for the deficiency.
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Section § 3069
This law explains that if you have a lien on a vehicle for services like labor, materials, storage, or safety on private property, you can transfer this lien to someone else. To do this, you need to create a written document and hand over possession of the vehicle. When you assign the lien, you also have to inform the vehicle's registered and legal owner in writing, using either personal delivery or registered/certified mail. The notice should include the name and address of the person getting the lien.
Any lien provided for in this chapter for labor or materials, or for storage or safekeeping of a vehicle when abandoned on private property may be assigned by written instrument accompanied by delivery of possession of the vehicle, subject to the lien, and the assignee may exercise the rights of a lienholder as provided in this chapter. Any lienholder assigning a lien as authorized herein shall at the time of assigning the lien give written notice either by personal delivery or by registered or certified mail, to the registered and legal owner of the assignment, including the name and address of the person to whom the lien is assigned.
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Section § 3070
If someone loses their right to keep a vehicle because of deception, getting the vehicle back restores that right, but it ranks below any valid claims others have made during that time. It's illegal to trick someone into giving up a vehicle that has a lien, and it's also illegal for a lienholder to knowingly break these rules. If anyone improperly tows a vehicle to gain a lien, they lose the right to charge for towing and can be sued for damages and costs. Specific bad actions include not following certain Vehicle Code rules, lying about legal details, failing to provide or display fee information, and making improper deals for towing services.
(a)CA Civil Law Code § 3070(a) Whenever the possessory lien upon any vehicle is lost through trick, fraud, or device, the repossession of the vehicle by the lienholder revives the possessory lien but any lien so revived is subordinate to any right, title, or interest of any person under any sale, transfer, encumbrance, lien, or other interest acquired or secured in good faith and for value between the time of the loss of possession and the time of repossession.
(b)CA Civil Law Code § 3070(b) It is a misdemeanor for any person
to obtain possession of any vehicle or any part thereof subject to a lien pursuant to this chapter by trick, fraud, or device.
(c)CA Civil Law Code § 3070(c) It is a misdemeanor for any person claiming a lien on a vehicle to knowingly violate this chapter.
(d)Copy CA Civil Law Code § 3070(d)
(1)Copy CA Civil Law Code § 3070(d)(1) Any person who improperly causes a vehicle to be towed or removed in order to create or acquire a lienhold interest enforceable under this chapter, or who violates subdivision (c), shall forfeit all claims for towing, removal, or storage, and shall be liable to the owner or lessee of the vehicle for the cost of removal, transportation, and storage, damages resulting from the towing, removal, transportation, or storage of the vehicle, attorneys’ fees, and court costs.
(2)CA Civil Law Code § 3070(d)(2) For purposes of this subdivision, “improperly causes a vehicle to be towed or removed”
includes, but is not limited to, engaging in any of the following acts, the consequence of which is the towing or removal of a vehicle:
(A)CA Civil Law Code § 3070(d)(2)(A) Failure to comply with Section 10650, 10652.5, or 10655 of the Vehicle Code.
(B)CA Civil Law Code § 3070(d)(2)(B) Misrepresentation of information described in subdivision (b) of Section 10650 of the Vehicle Code.
(C)CA Civil Law Code § 3070(d)(2)(C) Failure to comply with Section 22658 of the Vehicle Code.
(D)CA Civil Law Code § 3070(d)(2)(D) Failure, when obtaining authorization for the removal of a vehicle from a vehicle owner or operator where a law enforcement officer is not present at the scene of an accident, to present a form for signature that plainly identifies all applicable towing and storage fees and charges by type and amount, and identifies the name and address of the storage facility unless a
different storage facility is specified by the vehicle owner or operator, and to furnish a copy of the signed form to the owner or operator.
(E)CA Civil Law Code § 3070(d)(2)(E) Failure by the owner or operator of a facility used for the storage of towed vehicles to display, in plain view at all cashiers’ stations, a sign not less than 17 by 22 inches in size with lettering not less than one inch in height, disclosing all storage fees and charges in force, including the maximum daily storage rate.
(F)CA Civil Law Code § 3070(d)(2)(F) Undertaking repairs or service on a vehicle which is being stored at a facility used for the storage of towed vehicles without first providing a written estimate to, and obtaining the express written consent of, the owner of the vehicle.
(G)CA Civil Law Code § 3070(d)(2)(G) The promise to pay or the payment of money or other valuable consideration by any owner or operator of a towing
service to the owner or operator of the premises from which the vehicle is towed or removed, for the privilege of towing or removing the vehicle.
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Section § 3071
If you hold a lien on a vehicle valued over $4,000, you need to apply to the Department of Motor Vehicles (DMV) to conduct a lien sale. The application has to include details about the vehicle, amounts owed, and the owners’ information. The DMV will notify the vehicle owners, and they have a right to a hearing if they file an opposition within 10 days. The lienholder can't sell the vehicle until a court favors them, or if notified parties don't respond or can’t be reached. The DMV will authorize the sale, and the lienholder must publish and send notices before selling the vehicle. If the sale occurs, they must remove plates and report it to the DMV. Vehicle owners can reclaim their vehicle by paying within 10 days after the sale. The sale must be public, and if the lienholder fails to follow these rules, the sale is invalid.
(a)CA Civil Law Code § 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)CA Civil Law Code § 3071(a)(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)CA Civil Law Code § 3071(a)(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)CA Civil Law Code § 3071(a)(3) A statement of the amount of the lien and the facts that give rise to the lien.
(b)CA Civil Law Code § 3071(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall do all of the following:
(1)CA Civil Law Code § 3071(b)(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)CA Civil Law Code § 3071(b)(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)CA Civil Law Code § 3071(c) The notice required pursuant to subdivision (b) shall include all of the following statements and information:
(1)CA Civil Law Code § 3071(c)(1) An application has been made with the department for authorization to conduct a lien sale.
(2)CA Civil Law Code § 3071(c)(2) The
person has a right to a hearing in court.
(3)CA Civil Law Code § 3071(c)(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)CA Civil Law Code § 3071(c)(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)CA Civil Law Code § 3071(c)(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)CA Civil Law Code § 3071(c)(6) The person may be liable for court costs if a judgment is entered in favor of the lienholder.
(d)CA Civil Law Code § 3071(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)CA Civil Law Code § 3071(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)CA Civil Law Code § 3071(f) Upon receipt of authorization to conduct the lien sale from the department, the lienholder shall immediately do all of the following:
(1)CA Civil Law Code § 3071(f)(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)CA Civil Law Code § 3071(f)(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)CA Civil Law Code § 3071(f)(2)(A) The registered and legal owners of the vehicle, if registered in this state.
(B)CA Civil Law Code § 3071(f)(2)(B) All persons known to have an interest in the vehicle.
(C)CA Civil Law Code § 3071(f)(2)(C) The department.
(g)CA Civil Law Code § 3071(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)CA Civil Law Code § 3071(h) Following the sale of a vehicle, the
person who conducts the sale shall do both of the following:
(1)CA Civil Law Code § 3071(h)(1) Remove and destroy the vehicle’s license plates.
(2)CA Civil Law Code § 3071(h)(2) Within five days of the sale, submit a completed “Notice of Release of Liability” form to the Department of Motor Vehicles.
(i)CA Civil Law Code § 3071(i) The Department of Motor Vehicles shall retain all submitted forms described in paragraph (2) of subdivision (h) for two years.
(j)CA Civil Law Code § 3071(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)CA Civil Law Code § 3071(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)CA Civil Law Code § 3071(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.
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Section § 3071.5
If someone owes money on a car and another person is holding it as security (a lienholder), the car owner can give up their rights to the car. This means they allow the lienholder to sell it. The release form has to be in large type, easy to understand, and include details about the car, its owners, and the amount owed. The owner must agree that they won't contest the sale and are aware they're giving up their rights. This form doesn't need to be filed with the DMV when the car changes hands.
(a)CA Civil Law Code § 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)CA Civil Law Code § 3071.5(b) The release shall be in at least 12-point type and shall contain all of the following information in simple, nontechnical language:
(1)CA Civil Law Code § 3071.5(b)(1) A description of the vehicle, including the year and make, the engine or
vehicle identification number, and the license number, if available.
(2)CA Civil Law Code § 3071.5(b)(2) The names and addresses of the registered and legal owners of record with the Department of Motor Vehicles, if available.
(3)CA Civil Law Code § 3071.5(b)(3) A statement of the amount of the lien and the facts concerning the claim which gives rise to the lien.
(4)CA Civil Law Code § 3071.5(b)(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)CA Civil Law Code § 3071.5(b)(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)CA Civil Law Code § 3071.5(c) The release required by this section shall not be filed with the department in connection with any transfer of interest in a vehicle.
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Section § 3072
This section deals with the process for selling a vehicle worth $4,000 or less that is under a lien, meaning another party has a legal right to possess the vehicle until a debt is paid. The lienholder must contact the DMV for the vehicle owners' information and send them a notice about the pending lien sale. The notice should also go to anyone else with an interest in the vehicle. If the owner opposes, they must return a form within 10 days to halt the sale, prompting possible court proceedings. The law includes specific steps for conducting and notifying about the sale. Importantly, the vehicle must be available for public inspection before the sale, and paperwork must be promptly handled after. If the lienholder doesn't follow these steps, the lien sale is invalid.
(a)CA Civil Law Code § 3072(a) For vehicles with a value determined to be four thousand dollars ($4,000) or less, the lienholder shall apply to the department for the names and addresses of the registered and legal owners of record. The request shall include a description of the vehicle, including make, year, model, identification number, license number, and state of registration. If the vehicle identification number is not available, the Department of Motor Vehicles shall request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or
departmental employee before releasing the names and addresses of the registered and legal owners and interested parties.
(b)CA Civil Law Code § 3072(b) The lienholder shall, immediately upon receipt of the names and addresses, send, by certified mail with return receipt requested or by United States Postal Service Certificate of Mailing, a completed Notice of Pending Lien Sale form, a blank Declaration of Opposition form, and a return envelope preaddressed to the department, to the registered owner and legal owner at their addresses of record with the department, and to any other person known to have an interest in the vehicle. The lienholder shall additionally send a copy of the completed Notice of Pending Lien Sale form to the department by certified mail on the same day that the other notices are mailed pursuant to this subdivision.
(c)CA Civil Law Code § 3072(c) All notices to persons having an interest in the vehicle shall be
signed under penalty of perjury and shall include all of the following information and statements:
(1)CA Civil Law Code § 3072(c)(1) A description of the vehicle, including make, year model, identification number, license number, and state of registration. For motorcycles, the engine number shall also be included.
(2)CA Civil Law Code § 3072(c)(2) The specific date, exact time, and place of sale, which shall be set not less than 31 days, but not more than 41 days, from the date of mailing.
(3)CA Civil Law Code § 3072(c)(3) The names and addresses of the registered and legal owners of the vehicle and any other person known to have an interest in the vehicle.
(4)CA Civil Law Code § 3072(c)(4) All of the following statements:
(A)CA Civil Law Code § 3072(c)(4)(A) The amount of the lien and the facts concerning the claim which gives rise to the
lien.
(B)CA Civil Law Code § 3072(c)(4)(B) The person has a right to a hearing in court.
(C)CA Civil Law Code § 3072(c)(4)(C) If a court hearing 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 the Notice of Pending Lien Sale form was mailed.
(D)CA Civil Law Code § 3072(c)(4)(D) If the Declaration of Opposition form is signed and returned, the lienholder shall be allowed to sell the vehicle only if he or she obtains a court judgment or if he or she obtains a subsequent release from the declarant or if the declarant cannot be served as described in subdivision (e).
(E)CA Civil Law Code § 3072(c)(4)(E) 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.
(F)CA Civil Law Code § 3072(c)(4)(F) The person may be liable for court costs if a judgment is entered in favor of the lienholder.
(d)CA Civil Law Code § 3072(d) If the department receives the completed Declaration of Opposition form within the time specified, the department shall notify the lienholder within 16 days that a lien sale shall not be conducted unless the lienholder files an action in court within 30 days of the notice and 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)CA Civil Law Code § 3072(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 Motor Vehicles of the inability to effect service on the declarant and shall provide the Department of Motor Vehicles with a copy of the documents with which service on the declarant was attempted. Upon receipt of the notification of unsuccessful service, the Department of Motor Vehicles
shall send authorization of the sale to the lienholder and shall send notification of the authorization to the declarant.
(f)CA Civil Law Code § 3072(f) At least 10 consecutive days prior to and including the day of the sale, the lienholder shall post a Notice of Pending Lien Sale form in a conspicuous place on the premises of the business office of the lienholder and if the pending lien sale is scheduled to occur at a place other than the premises of the business office of the lienholder, at the site of the forthcoming sale. The Notice of Pending Lien Sale form shall state the specific date and exact time of the sale and description of the vehicle, including the make, year model, identification number, license number, and state of registration. For motorcycles, the engine number shall also be included. The notice of sale shall remain posted until the sale is completed.
(g)CA Civil Law Code § 3072(g) Following the sale of a vehicle,
the person who conducts the sale shall do both of the following:
(1)CA Civil Law Code § 3072(g)(1) Remove and destroy the vehicle’s license plates.
(2)CA Civil Law Code § 3072(g)(2) Within five days of the sale, submit a completed “Notice of Release of Liability” form with the Department of Motor Vehicles.
(h)CA Civil Law Code § 3072(h) The Department of Motor Vehicles shall retain all submitted forms described in paragraph (2) of subdivision (g) for two years.
(i)CA Civil Law Code § 3072(i) 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 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. All lien sale documents required by the department shall be completed and delivered to the buyer immediately following the sale.
(j)CA Civil Law Code § 3072(j) 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.
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Section § 3073
This law explains what happens to the money from selling a car when it’s sold to pay off a lien. First, any amount necessary to clear the lien and a fixed processing fee goes to the person who had the lien. The rest of the money goes to the Department of Motor Vehicles (DMV) within a certain time frame, unless there’s a federal law that states otherwise. If someone else thinks they have a right to some of the leftover money, they can claim it from the DMV within three years of the sale, but only up to the amount that the DMV received from the sale.
The proceeds of a vehicle lien sale under this article shall be disposed of as follows:
(a)CA Civil Law Code § 3073(a) The amount necessary to discharge the lien and the cost of processing the vehicle shall be paid to the lienholder. The cost of processing shall not exceed seventy dollars ($70) for each vehicle valued at four thousand dollars ($4,000) or less, or one hundred dollars ($100) for each vehicle valued over four thousand dollars ($4,000).
(b)CA Civil Law Code § 3073(b) The
balance, if any, shall be forwarded to the Department of Motor Vehicles within 15 days of any sale conducted pursuant to Section 3071 or within five days of any sale conducted pursuant to Section 3072 and deposited in the Motor Vehicle Account in the State Transportation Fund, unless federal law requires these funds to be disposed in a different manner.
(c)CA Civil Law Code § 3073(c) Any person claiming an interest in the vehicle may file a claim with the Department of Motor Vehicles for any portion of the funds from the lien sale that were forwarded to the department pursuant to subdivision (b). Upon a determination of the Department of Motor Vehicles that the claimant is entitled to an amount from the balance deposited with the department, the department shall pay that amount determined by the department, which amount shall not exceed the amount forwarded to the department pursuant to subdivision (b) in connection with the sale of the vehicle in which the claimant
claims an interest. The department shall not honor any claim unless the claim has been filed within three years of the date the funds were deposited in the Motor Vehicle Account.
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Section § 3074
This law allows lienholders to charge fees for preparing to sell a vehicle they have a lien on. If the vehicle is worth $4,000 or less, the fee can't be more than $70. If it's worth more than $4,000, the fee can go up to $100. These fees can start to be charged when the lienholder asks the DMV for information about who owns or has an interest in the vehicle. However, only half of the fee can be charged before notifying all interested parties of the lien sale. Also, no fee can be charged if the vehicle is claimed within 72 hours of being stored.
The lienholder may charge a fee for lien sale preparations not to exceed seventy dollars ($70) in the case of a vehicle having a value determined to be four thousand dollars ($4,000) or less and not to exceed one hundred dollars ($100) in the case of a vehicle having a value determined to be greater than four thousand dollars ($4,000), from any person who redeems the vehicle prior to disposal or is paid through a lien sale pursuant to this chapter. These charges may commence and become part of the possessory lien when the lienholder requests the names and
addresses of all persons having an interest in the vehicle from the Department of Motor Vehicles. Not more than 50 percent of the allowable fee may be charged until the lien sale notifications are mailed to all interested parties and the lienholder or registration service agent has possession of the required lien processing documents. This charge shall not be made in the case of any vehicle redeemed prior to 72 hours from the initial storage.
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