Lien - Discharge

AUTHORITY:
Tenn. Code Ann. Sections 55-3-114(c) and 55-3-127

DESCRIPTION:

  • The removal of a lien on a motor vehicle or real property after the claim has been satisfied is referred to as a “discharge of lien”.

REQUIREMENTS:

  • When the debt is satisfied, the lienor must discharge the lien, mortgage or encumbrance by doing one of the following things:
    • Submit to the Vehicle Services Division a copy of the certificate of title with the date of discharge and signature reflected thereon, or
    • Submit to the VS Division the tear away portion at the top of the new 8 ½” x 11” title form with the date of discharge and signature reflected thereon.  
      • The lienor is required to deliver the certificate of title to an owner within seven (7) business days of the owner’s request after the lien has been discharged unless the certificate of title shows on its face one (1) or more liens still outstanding, in which event the certificate of title shall be delivered to the next prior lienor, either in person or by registered mail 
      • The lienor must report the discharge of lien to the division within 72 hours of the discharge by registered mail with return receipt requested

RELATED TOPICS:
LIENS OVERVIEW
NOTING OF LIENS

FEES:
There are NO FEES associated with this transaction

Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.