Lien Sales
How to sell a motor vehicle, to which you do not have title, in order to get compensation you are due from the owner.
Lien sales come about due to specific types of circumstances. Following are the specifics regarding each type of lien.
- Work (Mechanic’s) Lien - The registered owner of the vehicle MUST request that work be performed on their vehicle, either by a work order, written contract or verbal agreement. If the owner of the vehicle does not return to pay the charges, or refuses to pay them, the mechanic performing the work has a lien on the vehicle for the just and reasonable charges for the labor performed and material furnished.
- Towing (Impound) Lien - A person who is in the business of towing vehicles and who tows and/or stores a vehicle at the request of the vehicle owner, a peace officer, or an owner of property where the vehicle is parked without consent, has a possessory lien on the vehicle.
- Storage (Warehouse) Lien - A person who is in the business of storing vehicles and who stores a vehicle at the request of the vehicle owner, has a possessory lien on the vehicle (AS 34.35.220)
In either of these situations, the lien remains in effect while the vehicle is in possession of the person who performed work on the vehicle or towed and stored the vehicle. The vehicle may be sold to pay the charges. Following are statutes and procedures that apply to each specific type of lien sale.
Work (Mechanic’s) Lien
- Alaska Statute - AS 34.35.175
- Claim Of Ownership / Involuntary Lien (Form 826)
Specific Requirements of Sale:
- Charges have not been paid within three (3) months after the work was performed.
- The sale shall be held in the recording district where the vehicle was left for repairs.
- Notice of Public Sale must be given to the owner by registered letter before the vehicle can be sold. If there is a lien holder showing on DMV records, the lien holder must be notified in the same manner.
- Notice of Public Sale must be posted in three (3) public places within the recording district for at least ten (10) days before the vehicle is sold. One of the notices must be at or near the front door of the post office nearest the place of sale.
Title Requirements:
- A properly completed "Claim Of Ownership / Involuntary Lien, notarized. (Form 826)
- Application for Title and Registration, completed in full. (Form 812 or 812A)
- Certificate Of Vehicle Inspection (Form 811) - (Form 811 must be completed by and the vehicle must be physically inspected by a DMV staff member or your local law enforcement agency). An individual may obtain a special one-way trip permit from DMV for the purpose of bringing the vehicle to a DMV office for inspection.
- There is a $15.00 title fee. If the vehicle is not currently registered, the driver will be required to pay registration fees.
TOWING (IMPOUND) LIEN - AS 28.10.502 (Form 826)
Specific Requirements of Sale:
- Lien is limited to towing and storage charges.
- Storage charges cease to be a part of the lien after 60 days unless the registered owner or lien holder, if any, has been given actual notice of the lien within that time, or unless a certified letter has been mailed within that time.
- The vehicle has been impounded and has remained unclaimed for a period of 30 days.
- The registered owner and lien holder, if applicable, were given 20 days Notice of Public Sale. (Must be personally served or sent the notice by certified mail, return receipt requested.)
- Towing Lien Packet
Title Requirements:
- A properly completed Claim Of Ownership / Involuntary Lien (Form 826) notarized.
- Application for Title and Registration, completed in full. (Form 812 or 812A)
- Certificate Of Vehicle Inspection (Form 811) - (Form 811 must be completed by and the vehicle must be physically inspected by a DMV staff member). An individual may obtain a special one-way trip permit from DMV for the purpose of bringing the vehicle to a DMV office for inspection.
- There is a $15.00 title fee. If the vehicle is not currently registered, the driver will be required to pay registration fees.
Storage (Warehouse) Lien
- Alaska Statute: AS 34.35.220
- Claim Of Ownership / Involuntary Lien (Form 826)
Specific Requirements of Sale:
- Lien is limited to storage charges.
- Charges have not been paid within three (3) months.
- The sale shall be held in the recording district where the vehicle was left.
- Notice of Public Sale must be given to the owner by registered letter before the vehicle can be sold. If there is a lien holder showing on DMV records, the lien holder must be notified in the same manner.
AND
- Notice of Public Sale must be posted in three (3) public places within the recording district for at least ten (10) days before the vehicle is sold. One of the notices must be at or near the front door of the post office nearest the place of sale.
Title Requirements:
- A properly completed "Claim Of Ownership / Involuntary Lien, notarized. (Form 826)
- Copy of storage agreement.
- Application for Title and Registration, completed in full. (Form 812 or 812A)
- Certificate Of Vehicle Inspection (Form 811) - (Form 811 must be completed by and the vehicle must be physically inspected by a DMV staff member). An individual may obtain a special one-way trip permit from DMV for the purpose of bringing the vehicle to a DMV office for inspection.
- There is a $15.00 title fee. If the vehicle is not currently registered, the driver will be required to pay registration fees.
US Government Impound
If an individual has purchased a vehicle from the US Government that was impounded as abandoned on a military installation, they will be given an SF Form 97. They must submit this SF Form 97, an Application for Title and Registration to the Division of Motor Vehicles. There is a $15.00 title fee. If the vehicle is not currently registered, the buyer will be required to pay registration fees.
Title Requirements: