Lienholder Questions

How long does a lienholder have to release their lien after the loan has been satisfied?

As of January 1, 2007, KSA 8-1, 157 Satisfaction of lien on vehicle; requirements for release; penalties, rules and regulations became effective. This statute sets requirements for lienholders with regard to the length of time in which the lien release must be delivered. The statute is available by following this link: http://kslegislature.org/li_2012/b2011_12/statute/008_000_0000_chapter/008_001_0000_article/008_001_0157_section/008_001_0157_k/.

What procedure is used when the vehicle has been sold and the title is electronic?

Transfer of ownership must still be completed by assignment of a paper title.

Buyer is a Dealer – The dealer pays off the lien and instructs the lienholder to have the title mailed to their address. The dealer has the owner complete a Kansas Secure Power of Attorney. If the dealer sells the vehicle before the title is received they complete Section B on the Secure Power of Attorney.

Buyer is an Individual - There are two forms that may be used, but neither is required. One or the other, or both forms may be used for the following situations:

• Complete the TR-40 (Power of Attorney and Odometer Disclosure for Electronic Title) if the seller will not be available to complete the assignment of title once the paper title has been issued. The TR-40 allows the buyer to complete the assignment of title and transfer the odometer information from the TR-40 onto the title assignment. Out of state buyers should check with their state’s DMV (Division of Motor Vehicles) to confirm they will accept this form in lieu of a Secure Power of Attorney. If not, a Secure Power of Attorney will need to be completed.
• Complete the TR-39a (Electronic Title Sales Agreement) if the buyer wishes to operate the vehicle while waiting for the delivery of the printed title. THIS IS NOT A TRANSFER OF OWNERSHIP DOCUMENT. It’s proof of purchase solely for the operation of the vehicle for the first 30 days after purchase and delivery of the vehicle.

What are the procedures for changing the name or names on a title (adding or removing a name(s), name change due to marriage, court order or business name change, etc.)?

To change a name on the E-Title record, a TR-128 (Lienholder’s Consent) must be completed, signed and notarized by the lienholder. There is an assignment space on the bottom of the TR-128 to be used only to add an immediate family member (spouse, father, mother, son or daughter), to remove an owner(s) from the current title, or to change the owner’s name due to marriage, court order or to change the name of a business. If removing a name(s) and adding a name(s)at the same time, at least one of the previous owners must be shown on the assignment with the new name(s).

This is the only circumstance that an assignment may be completed when the title is being held electronically. All other assignments must be completed on the back of the Kansas paper title.

Can the lienholder have the title mailed to or picked up by someone other than the owner?

A title will be printed when the lienholder releases the lien and there are no additional liens for the vehicle. The lienholder will instruct the Titles and Registrations Bureau where to mail the paper title by including this information on the lien release.

When will a paper title not be required?

Adding or changing a lienholder: If the first lienholder has released their lien, attach the release to the Secured Title application. If the first lienholder is not releasing their lien, the new lienholder will be placed on the e-title record as a second lienholder until the first lien is released. The application with a copy of the current registration receipt or vehicle verification will be accepted as proof of ownership for the new application.

Changing the title brand: Complete the TR-13 Salvage, Non-Highway or Non-Repairable Vehicle Affidavit and attach a current registration receipt or vehicle verification and make application for a Salvage or Non-Highway title. Lienholder’s consent is not required. Non-Repairable titles cannot be issued with a lien; therefore, a lien release will be required for this title type.

If the vehicle is being changed to an antique title, submit the current registration receipt or vehicle verification when making application.

To place a Salvage or Non-Highway titled vehicle back on the road, take the vehicle and the receipt for the Salvage or Non-Highway title or vehicle verification to the Kansas Highway Patrol for inspection. The following documents must be submitted to the County Treasurer's Office when making application for rebuilt salvage or formerly Non-Highway: the pink copy of the inspection, title application receipt or verification and proof of insurance.

Changing VIN: Take the Current registration receipt or vehicle verification to the Kansas Highway Patrol inspection station. The KHP will issue the new VIN. If additional documentation is requested, the KHP will determine the requirements.

Correcting title information: Take the current registration receipt or vehicle verification and make application for a corrected title at your local county treasurer's DMV office. Circle the information on the receipt or verification that needs correcting and write the correct information in a space as close as possible to that information without covering any of the other information on the receipt or verification.

Will we process and submit application for title the same as we do now?

Yes, transfer of ownership must be completed on the back of the title in the assignment space. Application for title and registration are to be made in the county treasurer's motor vehicle office in which the owner resides.

The Titles and Registrations Bureau is strongly encouraging applications for secured title be submitted in the county in which the owner resides or where the lienholder is located. This secures the lienholder’s interest the moment the application is completed. The lienholder may obtain an application receipt for $1.50, payable to the county treasurer, which reflects that the lien has been recorded with the Division of Vehicles (DOV).

Do people that already have their titles need to surrender them to the Division of Vehicles?

No. Titles issued on or before December 31, 2002 remain with the owner.

Will owners get their title from Division of Vehicles (DOV) or their financial institution when the loan is paid off?

Lienholders that sign up for the Kansas Elien program will be able to electronically release their lien and must enter a mailing address where the title is to be mailed. Lienholders releasing their lien by paper must notarize the lien release and may deliver it to the owner or may fax it to the DOV at 785-296-2383. Lien releases faxed into the DOV may have mailing instructions included.

Will the Division of Vehicles (DOV) send any type of notice to the lienholder regarding their lien?

Lienholders that file an Notice of Security Interest (NSI) by the Elien program will receive electronic confirmation. They will receive a notice with a confirmation number when an NSI is filed and will receive one of the same two notices as outlined above for the paper filing. In addition, lienholders that are members of the Elien program will also be able to check the status of their NSI anytime they wish using the confirmation number and either the VIN number of the vehicle or the account number of the loan. The same is true when securing a lien on title applications through Elien.

When a lienholder files a paper Notice of Security Interest (NSI) for an original purchase of a vehicle, the lienholder will receive notification that the application has been received and that their interest in the vehicle has been perfected. In addition, notification will be sent advising lienholders that it has been 90 days since the filing of the NSI and the division has not received a title for the referenced vehicle.

If the lienholder is making a loan for a vehicle subsequent to the issuance of original title on the vehicle (the vehicle is currently titled in the owner’s name with the State of Kansas), a Secured Title application can be submitted to the County Treasurer’s motor vehicle office. Kansas’ lienholders will receive a copy of the Secured Title application reflecting their lien, at a cost of $1.50. Out of state lienholders will need to make arrangements with the Treasurer’s office, to obtain this copy and pay the $1.50 fee. Applications for Secured Titles and Refinance Secured Titles are no longer accepted at the state level.

How do you determine if there is a lien on the vehicle?

Request a copy of the owner’s current vehicle registration receipt. If the registration receipt does not indicate a lienholder, the owner should have a paper title without a lienholder recorded on it. If the owner is saying that they do have a lienholder, but no lienholder is indicated on their registration receipt, have the owner obtain a duplicate registration or vehicle verification* from their county treasurer's motor vehicle office.

If the registration receipt does not show a lienholder, and the owner is saying they lost the title, they must apply for a duplicate title.

If the registration receipt shows a lienholder and the owner says they do not have the title or that they have lost the title and the lien is not paid off, they must provide a lien release and make application for a re-issue title.

If the owner has their paper title and there is a lien showing, and the owner is saying it is paid off, the lien release needs to be attached to or completed on the title.

* The lienholder can sign up with AccessKansas (www.accesskansas.org) and perform the vehicle verification via the internet. If the lienholder prefers the customer can be charged the fee associated with the verification. Contact AccessKansas for information on how to sign up and view their fee structure.

Is an on-line Power of Attorney form available?

Yes. The name of the form is “Power of Attorney and Odometer Disclosure for Electronic Title” form TR-40. BE ADVISED! The Kansas DOV will honor this Power of Attorney; however, other states may reject it and require a Secure Power of Attorney be used. As stated on the bottom of the TR-40, if the application for title will be submitted in any state other than Kansas, check with that state first to verify if they will honor the form. Kansas cannot compel any state to honor this Power of Attorney if a Secure Power of Attorney is being required.

Paper Title Questions

If a paper title was previously issued, can application for duplicate title be submitted?

Kansas cannot issue any titles to the owner or lienholder while there is a lien recorded on the vehicle record. This includes duplicate titles.

Can the lien release for a paper title be faxed or electronically submitted to the Division of Vehicles?

No. A title issued prior to the implementation of the electronic title statute, January 1, 2003, that has a lien record on it must have the lien release portion of the title completed and notarized or have a separate notarized lien release attached to it. Since Kansas was a title to owner state prior to the statute change, statute still requires that the lien release be provided to the owner.

If a lien release is faxed or electronically submitted to the Division of Vehicles for a paper title, the Division of Vehicles will not process the release.

If the lienholder address is incorrectly listed on the title application receipt or vehicle verification, how is this corrected?

Have the vehicle owner take the title application/registration receipt to the county treasurer’s motor vehicle office and make application for a corrected title. Be certain that the correct address (or any information that needs correction) is provided.

Do you remit the lien release for the paper title to the Division of Vehicles?

No. You remit the lien release for the paper title at the County Treasurer's office. The lien release must be attached to the paper title.

For additional frequently asked questions on the paperless title process go to https://www.ksrevenue.org/dovtitlefaq.html