Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When an estate administrator in Arizona needs to confirm that a vehicle loan is fully paid, follow these steps:
- Obtain a Payoff Statement: Contact the lender and request a payoff statement. This document lists the exact amount required to satisfy the loan, including any accrued interest and fees. Keep a copy for your records.
- Verify Payment Receipt: After sending payment, obtain a receipt or confirmation letter from the lender stating the loan is paid in full. Ensure the date and loan details match the payoff statement.
- Request a Lien Release: Under Arizona Revised Statutes § 28-1226, the secured party must submit a lien release to the Arizona Department of Transportation (ADOT) within 30 days of payoff. You can verify this by requesting a copy of the lien release form or by checking directly with ADOT:
- ARS § 28-1226: Security interests; notation on certificate of title; release: https://www.azleg.gov/ars/28/01226.htm
- Check the Certificate of Title: Request an updated title from ADOT or view it online. The title should no longer show a lien against the vehicle. You can order a duplicate title here: Arizona MVD Title Information.
- Review UCC Filings (if applicable): If the lender filed a commercial security interest under the Uniform Commercial Code (UCC), they should file a UCC-3 termination statement with the Arizona Secretary of State. You can search UCC filings here: AZ SOS eCorp.
Helpful Hints
- Keep all payoff statements, receipts, and lien release documents organized in one file.
- Act promptly; ADOT and the lender have timeframes to complete the release process.
- Follow up with both the lender and ADOT if you don’t receive confirmation within 30 days of payoff.
- Consider consulting a probate attorney for complex estate or administrator duties.
- Use certified mail for payments to track delivery dates and confirm receipt.