LIEN SALES

How to sell a motor vehicle, to which you do not have title, in order to get compensation you are due from the owner.

Lien sales come about due to specific types of circumstances. Following are the specifics regarding each type of lien.

  • Work (Mechanic’s) Lien - The registered owner of the vehicle MUST request that work be performed on their vehicle, either by a work order, written contract, or verbal agreement. If the owner of the vehicle does not return to pay the charges or refuses to pay them, the mechanic performing the work has a lien on the vehicle for the just and reasonable charges for the labor performed and material furnished.
  • Towing (Impound) Lien - A person who is in the business of towing vehicles and who tows and/or stores a vehicle at the request of the vehicle owner, a peace officer, or an owner of the property where the vehicle is parked without consent, has a possessory lien on the vehicle.
  • Storage (Warehouse) Lien - A person who is in the business of storing vehicles and who stores a vehicle at the request of the vehicle owner, has a possessory lien on the vehicle (AS 34.35.220)

In either of these situations, these possessory liens remain in effect while the vehicle is in possession of the person who performed work on the vehicle or towed and stored the vehicle. The vehicle may be sold to pay the charges. Following are statutes and procedures that apply to each specific type of lien sale.

Work (Mechanic’s) Lien

Specific Requirements of Sale:

  • Charges have not been paid within three (3) months after the work was performed.
  • The sale shall be held in the recording district where the vehicle was left for repairs.
  • Notice of Public Sale must be given to the owner by registered letter before the vehicle can be sold. If there is a lien holder showing on DMV records, the lien holder must be notified in the same manner.
  • Notice of Public Sale must be posted in three (3) public places within the recording district for at least ten (10) days before the vehicle is sold. One of the notices must be at or near the front door of the post office nearest the place of sale.

Title Requirements:

  • A properly completed "Claim Of Ownership / Involuntary Lien, notarized. (Form 826)
  • Application for Title and Registration, completed in full.
  • Certificate Of Vehicle Inspection (Form 811) - may be inspected by a peace officer at your location or inspected at a DMV location.
  • There is a $15.00 title fee. If the vehicle is not currently registered, the driver will be required to pay registration fees.

TOWING (IMPOUND) LIEN - AS 28.10.502 (Form 826)Specific Requirements of Sale:

  • Lien is limited to towing and storage charges.
  • Storage charges cease to be a part of the lien after 60 days unless the registered owner or lien holder, if any, has been given actual notice of the lien within that time, or unless a certified letter has been mailed within that time.
  • The vehicle has been impounded and has remained unclaimed for a period of 30 days.
  • The registered owner and lien holder, if applicable, were given 20 days Notice of Public Sale. (Must be personally served or sent the notice by certified mail, return receipt requested.)
  • Towing Lien Packet

Title Requirements:

  • A properly completed Claim Of Ownership / Involuntary Lien (Form 826) notarized.
  • Application for Title and Registration, completed in full.
  • Certificate Of Vehicle Inspection (Form 811) - may be inspected by a peace officer at your location or inspected at a DMV location.
  • There is a $15.00 title fee. If the vehicle is not currently registered, the driver will be required to pay registration fees.

Storage (Warehouse) Lien

Specific Requirements of Sale:

  • Lien is limited to storage charges.
  • Charges have not been paid within three (3) months.
  • The sale shall be held in the recording district where the vehicle was left.
  • Notice of Public Sale must be given to the owner by registered letter before the vehicle can be sold. If there is a lien holder showing on DMV records, the lien holder must be notified in the same manner.

    AND

  • Notice of Public Sale must be posted in three (3) public places within the recording district for at least ten (10) days before the vehicle is sold. One of the notices must be at or near the front door of the post office nearest the place of sale.

Title Requirements:

  • A properly completed "Claim Of Ownership / Involuntary Lien, notarized. (Form 826)
  • Copy of storage agreement.
  • Application for Title and Registration, completed in full.
  • Certificate Of Vehicle Inspection (Form 811) - may be inspected by a peace officer at your location or inspected at a DMV location.
  • There is a $15.00 title fee. If the vehicle is not currently registered, the driver will be required to pay registration fees.

US Government Impound

If an individual has purchased a vehicle from the US Government, they will be given an SF Form 97. They must submit this SF Form 97, an Application for Title and Registration to the Division of Motor Vehicles. There are title and registration fees. This vehicle must be put into the surplus purchasers name before transferring to another person.

Title Requirements:

  • The vehicle must be in Alaska
  • SF Form 97
  • Application for Title and Registration, completed in full.
  • Certificate Of Vehicle Inspection (Form 811) - may be inspected by a peace officer at your location or inspected at a DMV location.
  • Fees
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