Lien question - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Ruttiger · 03-03-2009, 12:36 PM

At the risk of displaying my ignorance (cue the jokes about being an Oilers fan), I have a question about liens. I'm selling a vehicle that was financed through the dealership. The loan ended up going through ATB Financial and was assigned to a branch I used to work at a few years ago. So the loan is through ATB and doesn't seem to have anything to do with the dealership.

Does this qualify as a lien? If I'm not able to sell it for what's owing and I have a small balance left on the loan, is this considered a lien? Or is it simply a loan from the bank's point of view and whether I sell the truck or not has very little bearing on the status of the loan? Thanks in advance for the help.

ken0042 · 03-03-2009, 12:39 PM

You work(ed) at a bank and don't know how a lien works?

Yes, if ATB lent you money for a vehicle they would have placed a lien on the car.

Gozer · 03-03-2009, 12:41 PM

Quote:

Originally Posted by Ruttiger

At the risk of displaying my ignorance

Kevin Lowe is your leader.

You might as well have started with "At the risk of displaying my post"

Ruttiger · 03-03-2009, 12:42 PM

Quote:

Originally Posted by ken0042

You work(ed) at a bank and don't know how a lien works?

Yes, if ATB lent you money for a vehicle they would have placed a lien on the car.

I had nothing to do with lending. And I try to keep memories of that job as far removed as possible.

Gozer · 03-03-2009, 12:46 PM

Quote:

Originally Posted by Ruttiger

At the risk of displaying my ignorance (cue the jokes about being an Oilers fan), I have a question about liens. I'm selling a vehicle that was financed through the dealership. The loan ended up going through ATB Financial and was assigned to a branch I used to work at a few years ago. So the loan is through ATB and doesn't seem to have anything to do with the dealership.

Does this qualify as a lien? If I'm not able to sell it for what's owing and I have a small balance left on the loan, does is this considered a lien? Or is it simply a loan from the bank's point of view and whether I sell the truck or not has very little bearing on the status of the loan? Thanks in advance for the help.

Edit: misinformer! see below

If there is simply money still owed on the debt then you wouldn't be liened.

If you didn't pay what you owe the bank and time has passed they may have (probably did) lien it, and you would be required to pay them back before legally selling the vehicle.

Ruttiger · 03-03-2009, 12:48 PM

Quote:

Originally Posted by Gozer

If there is simply money still owed on the debt then you wouldn't be liened.

If you didn't pay what you owe the bank and time has passed they may have (probably did) lien it, and you would be required to pay them back before legally selling the vehicle.

Gotcha. So my payments are all up to term, no payments have been missed, but the sale price may end up being a little less than what's owed on the loan. No lien in this case - do I understand you correctly?

4X4 · 03-03-2009, 12:52 PM

I borrowed money from a bank to buy a truck. They did not actually register the truck as collateral on the loan, even though they called it an automobile loan. The likely reason they didn't use the truck as collateral was because I had a co-signer.
I have since sold the truck and still have the loan (I sold the truck and then blew the cash on H&B instead of paying off the loan). There is no lien on the truck.

So the answer to the original question is maybe.

Gozer · 03-03-2009, 12:56 PM

Quote:

Originally Posted by Ruttiger

No lien in this case - do I understand you correctly?

edit: see below

fredr123 · 03-03-2009, 12:58 PM

You can always get the vehicle's serial number and conduct a search through a registry agent of the Personal Property Registry. That will tell you if there are any charges registered against that property.

http://www.servicealberta.gov.ab.ca/554.cfm

ken0042 · 03-03-2009, 01:05 PM

I think there is some mis-information going on here.

From the gov't website:
A lien means that someone still owes money on the vehicle.

So any vehicle that is financed would have a lien on it; unless the bank makes a mistake.

Raekwon · 03-03-2009, 01:09 PM

Yes, as Ken said if you take out a car loan then the bank or whomever the loan is through is technically a partial owner of the vehicle and hence there is a lien on the vehicle. However if you just take out a loan or line of credit and buy the car then there would be no lien on the vehicle

Ruttiger · 03-03-2009, 01:25 PM

Thanks for all the insight. Between CP and managing to get through to my bank I've gotten it sorted out. At the end of the day, there is a lien on the vehicle. Just a matter of having the cheque made payable to myself and the bank at the time of the sale and then going to the bank with the buyer to verify for him that it has been cleared up and now lien free.