Licensed Vehicle Storage Facility Liens

Transcription

1 Licensed Vehicle Storage Facility Liens Clint Thompson Vehicle Titles and Registration Division August 16, 2015

2 General Overview Notice must be made: Law enforcement must be notified on or after the 11 th day after the claimant makes the First Notice. However, if this notice is made on or after the 18 th day after the First Notice, no storage fees can be assessed. VSF notifies law enforcement the vehicle has been abandoned. Within 5 days of obtaining possession if registered in Texas Within 14 days of obtaining possession if registered out of state Vehicle may be sold at public sale on or after the 31 st day after the Second Notice or Law Enforcement Notice, whichever is later.

3 General Overview

4 Possession This is considered the date the VSF takes possession of the vehicle.

5 Title and Registration Verifications Determine where the vehicle was last titled and registered to make notifications Title and registration verifications are required even if last registered out of state

6 Example of Title and Registration Verification: Texas

7 First Notice First Notice cannot be made in the first 24 hours Send to owner and primary lienholder if registered in Texas Last registered in Texas send within 5 days Last registered out of state send within 14 days*

8 First Notice (Out of State) If vehicle was last registered out of state, send request to state within 5 days Request to state must be by certified mail, return receipt If response received from state with title/registration verification within 21 days of sending inquiry to state, immediately send First Notice *This could be after the 14 th day of taking possession

9 First Notice (Out of State) If no response received from state by the end of the 21 st day after sending inquiry to state, may pursue newspaper notification If sent, must be made to each lienholder

10 First Notice Contents Date vehicle accepted for storage 1 st day storage fee assessed Daily storage rate Other charges Full name, address, phone number of VSF Hours vehicle may be claimed TDLR VSF license number

11 Law Enforcement Notification Vehicle considered abandoned 10 th day after First Notice Report within 7 days of it being considered abandoned, or no storage fees can be assessed Law enforcement has 30 days to claim Three ways to prove Law Enforcement Notification, only one required

12 Second Notice Second Notice sent if vehicle is not claimed by owner, lienholder, or law enforcement within 14 days of First Notice Second Notice can be made anytime on or after the 15 th day after the First Notice was sent

13 Second Notice Contents Same requirements as First Notice plus statements that: The facility may dispose of the vehicle under Occupations Code, Section Failure to pay charges and collect vehicle before the 30 th day notice is provided is considered a waiver of rights to vehicle and consent to sell

14 Notice by Newspaper Publication Certified mail, return receipt to the out of state agency is required Electronic certified mail is not acceptable Texas statute does not permit electronic certified mail for these requests If making First and Second Notice, two separate publications are required However, only one request to the out of state agency is required Publications may list more than one vehicle

15 Public Sale If not claimed and charges not paid by 30 th day, vehicle may be sold at public sale Sale may occur on or after the 31 st day after: Law Enforcement Notification, or Second Notice Whichever is latest

16 Following Public Sale Provide completed VTR-265-VSF with notary and assignment.

17 Following Public Sale In addition to VTR-265-VSF, the following is required to be given to purchaser by the VSF: Verification of title/registration Proof of First, Second, and Law Enforcement Notifications Customer is responsible for: Application for Texas Title, Form 130-U Liability insurance Vehicle Inspection Report/weight certificate, if applicable

18 Proof of Notifications Proof of Law Enforcement Notification Certification on form $10 dated receipt Certified mail, return receipt to law enforcement Proof of First and Second Notice: Date stamped receipts for certified mail and return receipt Any unopened, returned certified letters, if applicable In lieu of return receipt, electronic notifications showing delivery confirmation are acceptable Must show complete address (not just city and state) Must show status of Delivered Date of delivery

19 Acceptable Proof of Notifications Must be date stamped Must show Certified Mail Certified Mail Green Receipt or Firm Book 3877

20 Acceptable Proof of Notifications Delivered Certified Mail Complete Mailing Address Return Receipt/Proof of Delivery

21 Acceptable Proof of Notifications Article Number Delivered Certified Mail Complete Mailing Address What if return receipt/proof of delivery is lost?

22 Acceptable Proof of Notifications In lieu of the return receipt/proof of delivery

23 Acceptable Proof of Notifications Notification by Newspaper Certified mail, return receipt to government entity is required Electronic certified mail is not acceptable. Legible photocopy of newspaper publications Must include name and date of the publication

24 Unacceptable Proof of Notification Does not show complete mailing address

25 Requirements for Purchaser Application for Texas Title, Form 130-U Licensed Vehicle Storage Facility Lien Foreclosure, Form VTR-265-VSF Title and/or registration verification Proof of notifications sent to: The owner(s) and Any applicable lienholder(s) Proof of Law Enforcement Notification Proof of insurance VIN verification (if vehicle was last registered out of state) Vehicle inspection (if applicable)

26 Questions