Title Liens

A lien is usually placed on a vehicle when you first purchase it unless you pay the full cost with your own funds. A lien may also be placed on a vehicle if you refinance it. Your lien will be recorded on your title.

Once you title your vehicle in Vermont, DMV forwards your title with the lien recorded to your lender (lien holder). You will receive the registration card and license plates if you have also registered the vehicle.

Releasing the Lien

When you pay off your vehicle loan, the lender must send you the title showing your lien as satisfied. When you receive the title, you can either:

Exchange it for a clear title and pay the fee for a new title, or
Keep the title that displays the lien as satisfied.

Transferring a Vehicle with a Lien

If there is an existing lien on your vehicle and you are transferring the vehicle to another individual, you must contact the lien holder. The lien holder must agree to this transfer and provide you with the Vermont title. If the buyer is assuming the unpaid balance of the loan and was not on the original contract, the lien holder should satisfy the existing lien and record a new lien for the buyer.

Undisclosed Lien

The vehicle has entered the titling jurisdiction from a jurisdiction that does not disclose lien-holder information on the title. The titling jurisdiction may issue a new title without this brand if no notice of a security interest in the vehicle is recieved, within a jurisdiction defined time frame.

Download the PDF form to your computer and then open it with Adobe Reader

Title Sort descending	ID#	Description
Lien Add	VT-019	To add or adjust a lien to an existing Vermont title.
Lien Release	VT-008	To release a lien on a existing Vermont title

FAQs

Will the title always be marked “bonded”?

No, after three (3) years from the time of the bond purchase, you can obtain a clear title.

What Can a Bonded Title Be Used For?

The central use of Bonded Titles is to act as a form of financial protection for potentially harmed parties. However, it also holds benefits for the bondholder. It can allow the bondholder to possess proof of ownership instead of an incomplete, non-existent, or lost title bond.

This is essential, as proof of legal ownership is necessary for buying insurance or selling the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle. The bond may also be passed between owners if the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle is sold, in much the same way a title transfer occurs when an original title is present.

When Is a Bonded Title Required?

The exact circumstances in which owners must take out a Bonded Title vary case by case. However, in most cases, if you own or wish to buy a vehicle, trailer, vessel, snowmobile, or all-terrain vehicle that lacks a title or if that title is incomplete, then a Bonded Title is necessary.

What is a Bonded Title?

A bonded title, also known as a Certificate of Title Surety Bond or Lost Title Bond, is a document that establishes who owns a vehicle, trailer, vessel, snowmobile, or all-terrain vehicle. A bonded title can be used instead of a traditional title to register, get insurance for, or sell the vehicle, trailer, vessel, snowmobile, or all-terrain vehicle.

Do I need a title for a twenty (20) year old vehicle?

I am trying to register a vehicle that is more than 15 years old, what do I use for a title?

Your "bill of sale".

How can I change the ownership of a vehicle without a title?

If the vehicle is more than 15 years old you may use the "bill of sale."

If the vehicle is 15 years old or less, you must obtain a replacement title.

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