Information

A perfected lien is one that is listed on a certificate of title or when the lender has the title and a grant of security interest or lien signed by the vehicle owner.

In a situation where the buyer failed to submit a transfer of ownership, but the lien holder has the properly assigned title listing them as lien holder, the lender may submit the certificate of title, their customer’s fees, sales tax and follow the repossession procedure below.
If a lien was not perfected, the lien holder must follow the Unperfected Lien procedure. An unperfected lien is one where the owner never perfected the lender’s security interest in the vehicle by submitting the title with a signed grant. In most cases, either the lender or a sheriff's office conducts the sale of the vehicle.
If the lien holder does not have possession of the title, s/he must apply for a title in his/her name (Application to Title and Register a Motor Vehicle). If the lien holder is anyone other than a lending institution, a dealer, or the prior owner (who had already paid sales tax on the vehicle), sales tax is due.

Note: Effective Nov. 9, 2009, all unperfected lien repossession transactions require a court order.

Lien Holder Has Title

The lien holder must surrender the title and complete and submit an Affidavit of Repossession (PS2024). They should not sign a release.

If the lien holder elects to keep and use the vehicle, they must title it in their name and sales tax is due.

Lien Holder Does NOT Have Title

The lien holder must obtain a certificate of title in his/her name before a transfer of ownership can be submitted.

The lien holder must complete an Affidavit of Repossession (PS2024)

On the PS2024, the lien holder must complete the odometer, pollution control disclosure and damage disclosure section when applicable. The signed affidavit serves as the lender's application for title. They do not need to complete an application for duplicate title.

Foreign State Title Repossessions

The requirements for repossession vary from state to state, but a customer must provide the documents required by the jurisdiction that issued the title. A Minnesota repossession form is not acceptable with a foreign state title. Questions should be directed to your local motor vehicle office the Procedure line.

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