Car is about to be paid off. Giving the car to my dad. I live overseas. Do I need to be present to give the lien release to the DMV / Tax Assessor?
Posted by TallDarkAndHandsom3@reddit | Dallas | View on Reddit | 13 comments
This is the first time I'm dealing with an electronic title release. I live overseas but I'm a Dallas native. I was told by the lender once the car is paid off, a "Lien Release" letter is mailed to the address on file (to my parents) - which then needs to be taken to the DMV (or Tax Assessor?), an application is filled out, and then a new paper title is mailed.
My question is: Do I need to be physically present when the lien release letter is taken to the DMV / Tax Assessor? I'm giving the car to my dad since I don't need one where I live.
Thanks to everyone in advance.
Picov-Andropov@reddit
No, you just need to fill out the rest of the sale paperwork. The lien release just confirms to the tax office that the bank doesn’t own the car anymore and you have the legal right to sell it
TallDarkAndHandsom3@reddit (OP)
One more question. Does the DMV send the original title through the mail? Or do I have to go to the DMV myself to get it?
shedinja292@reddit
The bank should be the one with the title. They’ll send it to the address on file so make sure it’s correct. If you don’t get it from them you’ll have to mail a request form to the DMV to get a new one
Picov-Andropov@reddit
I believe it gets mailed automatically, but you may have to request a copy online.
TallDarkAndHandsom3@reddit (OP)
You’re a rockstar - thank you.
Icy_Huckleberry_8049@reddit
the title needs your signature
TallDarkAndHandsom3@reddit (OP)
Yes thank you - I understand that - but I'm mainly referring to the title application.
Icy_Huckleberry_8049@reddit
yes and to get a new title, even if it's a gifted car, the current title needs to be signed by the current owner
noncongruent@reddit
You should ask this over in /r/Texas where there's more experience with this topic. You have two different things here, one being the lien release and the other being the title transfer. If you just fill out a 130-U transferring the vehicle title to your dad he will pay full sales tax on it since it's considered a sale, even if the sale amount is listed as zero. The state will use the VIN to determine the presumptive value and base the sales tax on that value multiplied by .0625. You can look up the presumptive value here:
https://www.txdmv.gov/standard-presumptive-calculator
For example, if the presumptive value is $25,000 then your dad will owe sales tax of 25,000 x .0625 = $1,562.50 due at time of transfer. If you put a value higher than the presumptive value on the 130-U then the tax will be calculated by that number instead.
The transfer of your vehicle to your father does fall under the gift exception to calculating sales tax, but to exercise that option you and your dad must both fill out an Affidavit of Motor Vehicle Gift Transfer:
https://www.txdmv.gov/sites/default/files/form_files/14-317.pdf
The form requires that both your signature and your dad's signature be notarized. If you are able to use this form then the total tax to be collected will be $10 regardless of value.
TallDarkAndHandsom3@reddit (OP)
Thank you stranger. There are still a few specifics that I'm trying to figure out. Is the title mailed to us automatically or do we need to bring the lien release to the DMV? And if we do need to bring the letter to them, do I need to be present or can my dad do it on his own?
noncongruent@reddit
The lien release will go with the physical title and other completed forms to the local DMV office in the county your dad lives in. Typically the bank/lender has the physical title which they'll mail to the mailing address on the face of the title, though in my experience I've had the released title mailed to me from Austin, so presumably the lender sent the title that had their name listed as lienholder on the front of it was sent to Austin by them along with the lien release.
There's more knowledgeable people in /r/Texas on this subject that can probably answer your questions better.
Danibecr84@reddit
Be sure to file a 130-U form (title transfer) simply going to the court house and registering a new vehicle doesn't count.
TallDarkAndHandsom3@reddit (OP)
Understood. Thankies.