Well, I’ve gotten my answers. Just thought I’d leave it here for someone in a similar situation.
It is not as easy and straightforward process as some have suggested. In fact, it is very cumbersome. After a loan is paid in full, I’d have to wait 6 days until I receive the lienholder’s release letter and can register the vehicle in my name. “There’s no way around it” they said. A payment receipt from the bank is not sufficient. And the loan balance changes every day, of course. The best course of action would be for the seller to pay off the loan, wait a few days to receive the clearance letter and then document a transaction but that’s often impossible as they need the full loan amount available to them. And a seller can register a new lien during this waiting time (it would be fraudulent, but they can). And someone else can register a lien against a vehicle if they are owed money by the seller. Again, hypothetically. Not suggesting that sellers are bad people; just was told that it is possible and it does happen.
Another interesting fact, vehicle lien registrations are handled by some private company (“we don’t give out a name, it’s private” wtf, seriously???). They have up to 45 days to remove the lien. How would I know? You’d have to do your own lien searches. And if they don’t, you can call us again…
Anyway, I am not comfortable and asked the sellers to remove the lien prior to us doing the transaction. They will likely tell me no, thanks. So be it.
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"An idea is always a generalization, and generalization is a property of thinking. To generalize means to think." Georg Hegel
“To generalize is to be an idiot.” William Blake
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