Vehicular Definition of A Lien Sale
If a person (licensed repair facility) has repaired, furnished supplies or materials, towed or stored a vehicle and has not been paid for the services rendered, that person has a lien against the vehicle. The lien arises at the time the registered owner is presented with a written statement of charges for completed work or services. Although if services were performed that were not agreed upon and no written and signed estimate was issued beforehand, a mechanic has no right to keep the title owner from reclaiming the vehicle. If a mechanic asserts a fee that is not reasonably related to the work performed, and refuses to return the vehicle until that price is paid, the owner of the vehicle will be able to recoup a storage fee from the mechanic, as the mechanic is in the wrong for refusing to return the vehicle. In doing so the mechanic would commit the crime of conversion, or Embezzlement.
On the other hand, the mechanic can assess certain expenditures from the owner that are related to the work performed. These expenditures are normally, towing, storage fees, and the cost of filing the lien.
If the vehicle is towed by a public agency or private towing company, the lien arises when the vehicle is towed or transported. The lien may be satisfied by selling the vehicle through the lien sale process.
To conduct a lien sale, the person/lienholder must have possession of the vehicle and may have lien sale authorization from the DMV depending on the State and or value of the vehicle. Interested parties, including the registered and legal owners of record will be notified, by Registered Mail, before the sale occurs.
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