Frequently Asked Questions

Vehicle Services

Title Lien (for Lienholders)

What is the process if both lienholder A and B are ELT participants and lienholder A assigns part or all of a portfolio to lienholder B and the lien is still active?

Lienholder A sends a transfer of lien interest message electronically to the MVD identifying lienholder B as the new lienholder. MVD will send a confirmation notice to lienholder A and a message to lienholder B indicating they are now the new lienholder. The automated record will have the new lienholder information updated and a designated code that alerts the customer service representative this information has changed. This code remains until the lien is released electronically.

Will there be a $4 title fee to remove the lien once the account is paid in full?

No. The lien-free title will be printed without paying additional fees.

How long does it take to receive a title released electronically?

Once the electronic message has been received by MVD, the request is run against the MVD files overnight and the title is printed and mailed the next business day.

What if a borrower wants something immediately after paying off a loan that has been filed electronically with MVD?

The lienholder may immediately send an emergency electronic lien release to MVD. MVD will process the messages in the "Emergency" mailbox every hour between the hours of 7 a.m. to 4 p.m., Monday through Friday, excluding state holidays. The vehicle owner should wait one hour after the lien release is sent electronically before going to an MVD or authorized third-party office. The paper title will be available for pick up at any MVD or authorized third-party office, with proper identification.

What if the title release sent electronically does not match the information on file at the MVD?

Upon processing the request, the information will reject, and this information will be forwarded to the lienholder or its service provider electronically for resolution. Once resolved, the lienholder or service provider resends the electronic lien release to MVD for processing.

What if a dealer pays off the loan due to the vehicle being traded-in or sold to the dealer, or an insurance company pays off the loan due to the vehicle being "totaled," or another lender pays off the loan due to a refinancing, and requires a paper title within 24 hours?

The lienholder may immediately send an electronic emergency lien release to MVD. MVD will process the messages in the "Emergency" mailbox every hour between the hours of 7 a.m. to 4 p.m., Monday through Friday, excluding state holidays. The representative should wait one hour after the lien release is sent electronically before going to an MVD or authorized third-party office. The paper title will be available for pick up at any MVD or authorized third-party office. A representative of the specified dealer, insurance company or lender may pick up the title provided the representative has a power of attorney from the owner authorizing the release of the title and proper identification including a letter on the specified dealer's, insurance company's or lender's letterhead identifying the representative as authorized to pick up the title.

What if a dealer pays off the loan due to the vehicle being traded-in or sold to the dealer, or an insurance company pays off the loan due to the vehicle being "totaled," or another lender pays off the loan due to a refinancing and requires a paper title, but not necessarily within 24 hours?

The lienholder may send an electronic message, including the dealer's, insurance company's or lender's name and address where the paper title is to be mailed, to MVD's regular electronic mailbox. MVD will process the messages in the mailbox on a nightly basis, Monday through Friday, excluding state holidays. The paper title will be printed and mailed to the customer, in care of the specified dealer, insurance company or lender, the next business day.

What if a "Lien Notification (LC), lien establishment" message is received that identifies the wrong branch within the lienholder's organization where that branch also has electronic liens?

Upon processing the request, the system verifies that the name of the lienholder matches a customer number. If there is not a match, the information will reject. This information will be electronically forwarded to the lienholder or its service provider for resolution. Once resolved, the lienholder, if applicable, resends the electronic message to MVD.

Note: If the lienholder wishes to track branches separately, each branch will have to have its own customer number.

What if a "Lien Notification (LC), lien establishment" message is received that either identifies the wrong branch within the lienholder's organization where that branch does not have electronic liens, or the lien belongs to another lienholder?

Upon processing the request, the system verifies that the name of the lienholder matches a customer number. If there is not a match, the information will reject. This information will be electronically forwarded to the lienholder or its service provider for resolution. Unless the branch has been assigned an ADOT customer number, the information will always reject.

What indicator does a dealership or lienholder place on the title application to indicate that the lien is electronic?

None. The lienholder customer number when entered on our database will indicate the transaction is ELT.

If a paper title is not received, can we apply for a duplicate title?

Yes. The owner will need to sign the application for duplicate title. Submit the application and $4 title fee to any MVD or authorized third-party office. The duplicate title will be issued and sent to the lienholder.

If the title is not available (e.g., lost) and the customer cannot wait for the duplicate title and demands to have something before they leave, can we release the lien by use of a lien release as before?

Yes. Every attempt should be made to have the owner sign an application for a duplicate title. Although the owner is in possession of a notarized lien release, he or she needs to understand that before a title can be issued lien free, the duplicate title must accompany the lien release.

If my lienholder address is listed wrong on the title, how do I go about correcting the title?

Submit a signed application for title, applicable fees and the current title of record. The corrected title will be issued. The lienholder will receive the corrected title.

If title is not available at time of payoff (e.g., trade in at a dealer, title held by lienholder) what procedure does the buying party follow?

The dealer will have a properly executed Dealer Acquisition Contract and an Arizona Secure Power of Attorney signed by the seller. This gives the dealer authority to act on behalf of the seller. The sale of the vehicle can move forward.

Arizona presently requires a repossession title for AZ and out-of-state vehicles. Will we still need to apply for a repossession title after the Title Holding program is implemented? What documents are required if the out-of-state repossessed vehicle is sold to a dealer in AZ?

  • ELT title: If the current title is an ELT, the customer service representative will print the title and include it as a supporting document with the Repossession Affidavit.
  • Paper title: The lienholder will not be required to surrender the title.
  • Out-of-state repossession: Complete an Arizona Repossession Affidavit and, if available, submit the current title. If the title is not available, then submit a statement on your letterhead that the title is lost.

My customer got married. How do I update their title?

Submit a signed application for title, letter of permission, applicable fees and the current title of record. The corrected title will be issued. The lienholder will receive the corrected printed title or notification electronically that the title has been issued.

Can the lienholder have the title mailed to or picked up by someone other than the lienholder?

Yes. The lienholder of the vehicle must provide a power of attorney to the representative picking up the title. Acceptable authorization for representatives of businesses and organizations will include these items:

  • Personal identification matching a name preprinted on a business card for the organization
  • Personal identification plus a letter of permission on company letterhead from the business or organization
  • Employee picture ID issued by the business or organization

Under what conditions is a new title required when existing information changes on the current title?

The current title must be surrendered when obtaining a replacement title for

  • changing lien information.
  • adding, deleting, or changing a lienholder or owner.
  • changing owner or lienholder legal status.
  • changing AZ brand.
  • changing vehicle identification number.
  • changing vehicle year.
  • changing odometer.
  • changing make.
  • changing body style.
  • changing mobile home manufacturer.

Will we process and submit title work the same as we do now?

Yes. The process remains unchanged for submitting a transaction to an MVD or authorized third-party office.

Do the people who already have their titles need to surrender them when title holding is implemented?

No. Titles issued on or before Dec. 31, 2002, remain with the owner.

When the loan is paid off, where will the member get their title? MVD or their financial institution?

Lienholders who maintain the paper title will release the lien on the front of the title and deliver it to the member either in person if the member is in the office or by mail. Lienholders who are ELT participants will notify MVD electronically to release the lien, print the lien free title, and MVD will mail it to the member.

Will MVD still be sending paper lienholder records?

Yes, in some instances. The lienholder record will be sent to those lienholders who have recorded a second lien on the title. The primary lienholder will receive the title.

How will we know if there is a lien on a collateral?

This question could be interpreted two ways and will be answered as follows:

  1. The title when issued will be sent to the primary lienholder. If the lienholder is an ELT participant, MVD will send an electronic message indicating the title has been issued and lien recorded.
  2. At the time the title transaction is submitted, the current title must be surrendered as part of the supporting documents.

If we need a Power of Attorney, is this form available online?

No. At this time, there are no provisions for processing and printing the POA online.