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011-12 Cancellation of a Discharged Lien

Registration and Title Bulletin - #011-12

Date: May 07, 2012

To:

All County Tax Assessor-Collectors

Subject:

Cancellation of a Discharged Lien

PURPOSE

To notify you of a statutory change concerning the cancellation of a discharged lien, under Section 501.116, Transportation Code.

DETAILS

Effective January 1, 2012, with the passage of HB 2357, a lien can be discharged and cancelled after 10 years or more if the recorded lienholder does not exist, or cannot be located for the owner to obtain a release of the lien. The owner of record must submit a written Statement of Fact that states the lien was paid in full and the lienholder cannot be located.

The Motor Vehicle Title Manual on the TxDMV website has been updated with this information.

COUNTY ACTION

A discharge of lien can no longer be cancelled after six years. Only cancel discharged liens after 10 years or more have passed and the required Statement of Fact is submitted.

CONTACT

If you have any questions, please contact your local TxDMV Regional Service Center.

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