5.500 Lien Sale Procedure for Vehicles Valued $4,001 or More or Stored at a Self-Service Storage Facility (CC §3071)

A self-service facility is any real property designed and used for renting or leasing individual storage space. This does not include a garage or other storage area in a private residence.

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) and the nonrefundable processing fee to DMV at:

Department of Motor Vehicles
Lien Sales, Unit E143
PO Box 932317
Sacramento, CA 94232-3170

Step 2
DMV notifies by certified mail the owners and interested parties of the lien sale and gives them the opportunity to stop the sale by signing and returning the Declaration of Opposition within 10 days of the date the notice was mailed.

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

Step 3
If the sale is opposed then DMV sends the lienholder a letter denying the lien sale application.

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

Step 4
Upon receipt of authorization to conduct the sale from the department, 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 (REG 280) 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.

Step 6
At least five days, but not more than 20 days prior to the sale, not counting the day of sale, the lienholder must advertise the sale in a newspaper of general circulation published in the county in which the vehicle is located.

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 Notice of Pending Lien Sale for Vehicles Valued Over $4,000 or From a Self-Service Storage Facility (REG 280).

Step 8
The lienholder must conduct the sale in a businesslike fashion. 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.

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) to the department within five days of the sale.
• Complete a Certification of Lien Sale for Vehicles Valued Over $4,000 or From a Self-Service Storage Facility (REG 168). If no one places a qualifying bid on the vehicle, the lienholder must complete the REG 168 as both the seller and the buyer.

Step 11
Give to the buyer:

• REG 168
• Certified mailing receipts
• DMV authorization to conduct a lien sale
• If the lien sale was opposed, one of the following:
  • A certified copy of a court judgement entered in favor of the lienholder.
  • A release of interest from the opposer.
  • DMV authorization to continue with the lien sale after unsuccessful
    service.

Step 12
Within 15 days of the sale the lienholder must submit any excess fees with a copy of the Certification of Lien Sale for Vehicles Valued Over $4,000 or From a Self-Service Storage Facility (REG 168) to:

DMV
Lien Sales Unit
PO Box 932317
Sacramento, CA 94232-3170

Step 13
Within 90 days of acquisition, the dismantler must submit to the department:

• REG 42
• REG 168
• Certified mailing receipts
• DMV authorization to conduct a lien sale
• If the lien sale was opposed, one of the following:
  • A certified copy of a court judgment entered in favor of the lienholder.
  • A release of interest from the opposer.
  • DMV authorization to continue with the lien sale after unsuccessful
    service.