BUSINESS AND PROFESSIONS CODE SECTION 21702.5

21702.5. (a) Any lien on a vehicle or vessel subject to registration or identification under the Vehicle Code which has attached and is set forth in the documents of title to the vehicle or vessel shall have priority over any lien created pursuant to this chapter. (b) Any lien created pursuant to this chapter on a vehicle or vessel subject to registration or identification under the Vehicle Code shall be enforced in accordance with the provisions of Section 3071 of the Civil Code, in the case of a vehicle, or Section 503 of the Harbors and Navigation Code, in the case of a vessel, and not as prescribed in Sections 21705 to 21711, inclusive, except that actions may be conducted as provided in Section 21710. (c) Any lien created pursuant to this chapter on a vehicle or vessel subject to registration or identification under the Vehicle Code shall not include any charges for rent, labor, or other services incurred pursuant to the rental agreement, accruing more than 60 days after the date the lien imposed pursuant to this chapter attaches, as set forth in Section 21705, and before application is made for authorization to conduct the lien sale pursuant to the requirements of Section 3071 of the Civil Code or Section 503 of the Harbors and Navigation Code. (d) Any proceeds from a lien sale shall be disposed of pursuant to Section 3073 of the Civil Code, in the case of a vehicle, or Section 507.5 of the Harbors and Navigation Code, in the case of a vessel.

DMV brochure HTVR-8

Conduct Lien Sale for a Vehicle Stored at a Self-Service Storage Facility or Valued Over $ 4,000

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Requesting Authorization to Conduct a Lien Sale You must apply to the department for authorization to conduct a lien sale according to the provisions of Civil Code Section 3071. A $5 fee must accompany your application for authorization. This fee may be recovered by the lienholder as follows:

• From the buyer at the time of the lien sale.
  OR
• From the debtor if the vehicle is redeemed.

Your application for authorization must contain the vehicle identification number. If you cannot locate the number, you may request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or an authorized DMV employee.

Storage Lien Limitation

The period of time for storage lien may not exceed 60 days, unless an application for authorization to conduct the lien sale is filed within 30 days after the lien arises, and then it may be for a period not to exceed 120 days. Other liens for towing or contracted services (such as mechanical repairs) apply regardless of the period allowed. Any vehicle stored at a self-storage facility for which a lien has incurred shall be sold under the provisions of Civil Code Section 3071.

Notification of Your Request

When DMV receives a request to conduct a lien sale for a vehicle valued over $4000, the department shall notify:

• registered and legal owners and any interested parties by certified mail OR
• out-of-state vehicle registry, if the vehicle bears registration from another state.

Authority to Conduct the Lien Sale

You must wait for authorization from DMV before proceeding with the lien sale process. Allow 30 to 35 days to receive authorization.

Can Someone Oppose the Lien Sale?

Any person having an interest in the vehicle may declare opposition to the sale. DMV will notify you if a declaration of opposition is filed and the sale canceled. You may then secure your lien:

• through judicial proceeding. Service may be effected by certified mail or in person by a marshal, sheriff, or certified process server (process servers are registered by the county clerk of the respective counties). This must be done within 30 days from the date on the denial letter.
  OR
• by obtaining a release of interest signed by the person(s) who declared opposition.
  OR
• by filing a Notice of Unsuccessful Service with DMV when service cannot be effected on the person opposing the sale. Evidence of unsuccessful service is required.

When DMV receives one of the listed items, DMV will send authorization to continue with the sale and notify the person who opposed the sale of the authorization.

Conducting a Lien Sale

1. Twenty (20) days before the sale date you must notify by certified mail, with return receipt requested, each of the following:
   • legal owner, if any,
   • registered owner,
   • any interested parties, and
   • DMV, Lien Sale Unit, P.O. Bx 932317, Sacramento, CA 94232-3170.
   
   
2. At least five (5) days, but not more than twenty (20) days, before the sale (not counting the sale date), you must give notice of the sale by advertising the sale for one day in a newspaper of general circulation in the county in which the vehicle is located.

   If there is no newspaper published in the county, notice shall be given by posting the Notice of Sale:

   • in three (3) of the most public places in the town where the vehicle is located and
   • at the place where the vehicle is to be sold for ten (10) consecutive days prior to and including the day of the sale.
3. All notices shall specify the make, year model, vehicle identification number, license number, and state of registration, if available. For motorcycles, the engine number must also be specified. The specific date, exact time, and place of sale must also be included. For lien accrual information refer to Civil Code Sections 3068 and 3068.1.
4. The vehicle must be available for inspection at a location easily accessible to the public for at least one hour before the sale and must be at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. If the auction price exceeds the amount of the lien, the excess amount must be sent to the Lien Sale Unit within 15 days after the sale date.
5. After the sale, a redemption period of ten (10) days (not counting the date of sale) must be allowed before the purchaser can take possession of the vehicle and apply for transfer of ownership.
6. You are required to keep the vehicle for a 10 day redemption period. After the 10-day redemption period, give the buyer:
   • Certification of Lien Sale (REG 168) completed and signed by you.
   • A copy of the authorization letter from DMV to conduct the sale.
   • Postal receipts of the notices you sent.

What if No One Places a Qualifying Bid on the Vehicle?

Complete the Certification of Lien Sale (REG 168) showing you as the buyer (new owner), as well as the seller. Should you sell the vehicle following the lien sale where you were the buyer, you will be required to give the buyer a bill of sale in addition to the documents listed for registering the vehicle. See note in the next panel regarding payment of fees.

Registering the Vehicle

The following items are required to register a vehicle sold or retained at lien sale in addition to the items listed in the following panel.

• Application for Registration (REG 343) completed and signed by the new owner.
• Vehicle Verification (REG 343), if there is no California registration record.
• Smog certification, if applicable.
• Applicable registration and/or transfer fees and use tax.
• Vehicle/Vessel Transfer Form - Odometer Disclosure Statement (REG 262) is required for vehicles less than 10 years old.

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You Always Need...

• Application for Authorization for Lien Sale (REG 656)
• Certification of Lien Sale (REG 168)
• Application for Registration (REG 343)
• Notice of Sale (REG 280)
• DMV's Letter of authorization to conduct the lien sale
• Postal receipts of the notices sent
• Fees

You may also Need...

• Vehicle Verification (REG 343)
• Notice of Unsuccessful Court Service (REG 659)
• Vehicle/Vessel Transfer Form -Odometer Disclosure Statement (REG 262)
• Smog certification

NOTE: Many times a vehicle that is involved in a lien sale is not currently registered. If the vehicle registration expired while in your possession, the new owner has 20 days from the lien sale purchase date to pay registration fees without penalties or to file a certification of planned non-operation. The buyer may be subject to registration fees and penalties in other instances. The lienholder should advise the buyer in writing of any fees that may be required to register the vehicle.

Most vehicles require a smog inspection at the time of transfer. If applicable, provide a smog certification to the buyer.

If you have questions about conducting a lien sale, you may call the DMV, Lien Sale Unit at (916) 657-7617.

Self Storage Lien Law Top of Page

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Civil Code 3071

3071. (a) A lienholder shall apply to the department for the issuance of an authorization to conduct a lien sale pursuant to this section for any vehicle with a value determined to be over four thousand dollars ($4,000). A filing fee shall be charged by the department and may be recovered by the lienholder if a lien sale is conducted or if the vehicle is redeemed. The application shall be executed under penalty of perjury and shall include all of the following information:

(1) A description of the vehicle, including make, year model, identification number, license number, and state of registration. For motorcycles, the engine number also shall be included. If the vehicle identification number is not available, the department shall request an inspection of the vehicle by a peace officer, licensed vehicle verifier, or departmental employee before accepting the application.

(2) The names and addresses of the registered and legal owners of the vehicle, if ascertainable from the registration certificates within the vehicle, and the name and address of any person whom the lienholder knows, or reasonably should know, claims an interest in the vehicle.

(3) A statement of the amount of the lien and the facts that give rise to the lien.

(b) Upon receipt of an application made pursuant to subdivision (a), the department shall do all of the following:

(1) Notify the vehicle registry agency of a foreign state of the pending lien sale, if the vehicle bears indicia of registration in that state.

(2) By certified mail, send a notice, a copy of the application, and a return envelope preaddressed to the department to the registered and legal owners at their addresses of record with the department, and to any other person whose name and address is listed in the application.

(c) The notice required pursuant to subdivision (b) shall include all of the following statements and information:

(1) An application has been made with the department for authorization to conduct a lien sale.

(2) The person has a right to a hearing in court.

(3) If a hearing in court is desired, a Declaration of Opposition form, signed under penalty of perjury, shall be signed and returned to the department within 10 days of the date that the notice required pursuant to subdivision (b) was mailed.

(4) If the Declaration of Opposition form is signed and returned to the department, the lienholder shall be allowed to sell the vehicle only if he or she obtains a court judgment, if he or she obtains a subsequent release from the declarant or if the declarant, cannot be served as described in subdivision (e).

(5) If a court action is filed, the declarant shall be notified of the Lawuit at the address shown on the Declaration of Opposition form and may appear to contest the claim.

(6) The person may be liable for court costs if a judgment is entered in favor of the lienholder.

(d) If the department receives the Declaration of Opposition form in the time specified, the department shall notify the lienholder within 16 days of the receipt of the form that a lien sale shall not be conducted unless the lienholder files an action in court within 30 days of the department's notice under this subdivision. A lien sale of the vehicle shall not be conducted unless judgment is subsequently entered in favor of the lienholder or the declarant subsequently releases his or her interest in the vehicle. If a money judgment is entered in favor of the lienholder and the judgment is not paid within five days after becoming final, then the judgment may be enforced by lien sale proceedings conducted pursuant to subdivision (f).

(e) Service on the declarant in person or by certified mail with return receipt requested, signed by the declarant or an authorized agent of the declarant at the address shown on the Declaration of Opposition form, shall be effective for the serving of process. If the lienholder has served the declarant by certified mail at the address shown on the Declaration of Opposition form and the mail has been returned unclaimed, or if the lienholder has attempted to effect service on the declarant in person with a marshal, sheriff, or licensed process server and the marshal, sheriff, or licensed process server has been unable to effect service on the declarant, the lienholder may proceed with the judicial proceeding or proceed with the lien sale without a judicial proceeding. The lienholder shall notify the department of the inability to effect service on the declarant and shall provide the department with a copy of the documents with which service on the declarant was attempted. Upon receipt of the notification of unsuccessful service, the department shall send authorization of the sale to the lienholder and send notification of the authorization to the declarant.

(f) Upon receipt of authorization to conduct the lien sale from the department, the lienholder shall immediately do all of the following:

(1) At least five days, but not more than 20 days, prior to the lien sale, not counting the day of the sale, give notice of the sale by advertising once in a newspaper of general circulation published in the county in which the vehicle is located. If there is no newspaper published in the county, notice shall be given by posting a Notice of Sale form in three of the most public places in the town in which the vehicle is located and at the place where the vehicle is to be sold for 10 consecutive days prior to and including the day of the sale.

(2) Send a Notice of Pending Lien Sale form 20 days prior to the sale but not counting the day of sale, by certified mail with return receipt requested, to each of the following:

(A) The registered and legal owners of the vehicle, if registered in this state.

(B) All persons known to have an interest in the vehicle.

(C) The department.

(g) All notices required by this section, including the notice forms prescribed by the department, shall specify the make, year model, vehicle identification number, license number, and state of registration, if available, and the specific date, exact time, and place of sale. For motorcycles, the engine number shall also be included.

(h) Following the sale of a vehicle, the person who conducts the sale shall do both of the following:

(1) Remove and destroy the vehicle's license plates.

(2) Within five days of the sale, submit a completed "Notice of Release of Liability" form to the Department of Motor Vehicles.

(i) The Department of Motor Vehicles shall retain all submitted forms described in paragraph (2) of subdivision (h) for two years.

(j) No lien sale shall be undertaken pursuant to this section unless the vehicle has been available for inspection at a location easily accessible to the public for at least one hour before the sale and is at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. The lienholder shall conduct the sale in a commercially reasonable manner.

(k) Within 10 days after the sale of any vehicle pursuant to this section, the legal or registered owner may redeem the vehicle upon the payment of the amount of the sale, all costs and expenses of the sale, together with interest on the sum at the rate of 12 percent per annum from the due date thereof or the date when that sum was advanced until the repayment. If the vehicle is not redeemed, all lien sale documents required by the department shall then be completed and delivered to the buyer.

(l) Any lien sale pursuant to this section shall be void if the lienholder does not comply with this chapter. Any lien for fees or storage charges for parking and storage of a motor vehicle shall be subject to Section 10652.5 of the Vehicle Code.

3071.5. (a) A registered or legal owner of a vehicle in the possession of a person holding a lien under this chapter may release any interest in the vehicle after the lien has arisen. The release shall be dated when signed and a copy shall be given at the time the release is signed to the person releasing the interest.

(b) The release shall be in at least 12-point type and shall contain all of the following information in simple, nontechnical language:

(1) A description of the vehicle, including the year and make, the engine or vehicle identification number, and the license number, if available.

(2) The names and addresses of the registered and legal owners of record with the Department of Motor Vehicles, if available.

(3) A statement of the amount of the lien and the facts concerning the claim which gives rise to the lien.

(4) A statement that the person releasing the interest understands that (i) he has a legal right to a hearing in court prior to any sale of the vehicle to satisfy the lien and (ii) he is giving up the right to appear to contest the claim of the lienholder.

(5) A statement that (i) the person releasing the interest gives up any interest he may have in the vehicle and (ii) he is giving the lienholder permission to sell the vehicle.

(c) The release required by this section shall not be filed with the department in connection with any transfer of interest in a vehicle.

Self Storage Lien Law Top of Page

Vehicle Code 10652-

10652. Whenever any vehicle of a type subject to registration under this code has been stored in a garage, repair shop, parking lot, or trailer park for 30 days, the keeper shall report such fact to the Department of Justice in Sacramento by receipted mail, which shall at once notify the legal owner as of record. This section shall not apply to any vehicle stored by a peace officer or employee designated in Section 22651 pursuant to Article 3 (commencing with Section 22850) of Chapter 10 of Division 11.

10652.5. (a) Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code. (b) The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle. (c) In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorney's fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party. (d) This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

10653. Whenever any vehicle of a type subject to registration under this code which shows evidence of having been struck by a bullet is stored in a garage or repair shop, the keeper thereof shall within 24 hours after receiving the vehicle report such fact to the sheriff's office of the county or police department of the city wherein the garage or repair shop is located, giving the motor or other number of the vehicle, the license number if ascertainable, and the name and address of the person storing the same or the name and address of the owner shown by the registration card, if the same is attached to the vehicle in a clearly discernible place.

10654. Every person other than the keeper of a garage renting any private building used as a private garage or space therein for the storage of a vehicle of a type subject to registration under this code, when the agreement to rent includes only the building or space therein, shall within 24 hours after the vehicle is stored therein report such fact together with the name of the tenant, and a description of the vehicle, including the name or make, the motor or other number of the vehicle, and the license number to the sheriff's office of the county or the police department of the city wherein the building is located. "Private garage" as used in this section does not include a public warehouse or public garage.