Lien
A legal claim on a vehicle, usually by a lender, that must be cleared before ownership can transfer freely.
A lien is a legal claim against a vehicle that secures a debt. The most common is a car loan: the lender is recorded on the title as lienholder until the loan is paid. Repair shops, tow companies and storage lots can also hold liens for unpaid bills in many states.
A recorded lien is one of the most common reasons a junk car sale stalls. The buyer cannot get clear title until the lien is released, so either pay it off first or ask whether the buyer can pay the lender directly.
In Texas, once a lien is paid off the lienholder has 10 days after receiving payment to release it. If the lien was recorded on a paper title, the lienholder mails the title to the owner.1
References
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Texas Department of Motor Vehicles, “Add or Remove a Lien on a Vehicle”, https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/add-remove-lien ↩
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