The Expert Podcast

Today, we're going to look at the difference between a mechanics lien and a civil lien for obtaining a title for a vehicle. If you have a vehicle missing a title—perhaps it was abandoned or left on a property, or maybe you repaired or towed it and the owner hasn’t come forward with payment, or is simply M.I.A.—you have a couple of options. You can either pursue a mechanics lien or a civil lien.

A mechanics lien utilizes your authority as a licensed automotive business. In most cases, across nearly all 50 states, you must have a specific automotive license to file a mechanics lien. This could be as a repair shop, body shop, or towing company. A standard business license is not sufficient; an automotive license is required, granting privileges to perform a mechanics lien. If you lack such a license, a civil lien might be your alternative.

A key benefit of a mechanics lien is its ability to clear all bank liens. For example, if someone brings a car in for service and doesn’t pay their bill—even if they owe $10,000 to a bank—a properly executed mechanics lien will remove that bank lien from the title. This allows you to recover your unpaid repair costs.

However, there are several disadvantages to mechanics liens. First, they require an automotive license in almost all states, with very few exceptions. Second, they must be initiated within a specific timeframe dictated by state laws. For instance, if the customer owes you for repairs or storage, you cannot wait indefinitely to start the process. If you delay too long, your paperwork may be rejected as invalid.

Additionally, a signed repair order from the vehicle’s owner is typically required. Verbal agreements are insufficient; you must have written authorization, often called a repair order (RO), for the work performed. Proper notice must also be sent to the vehicle owner and any lienholders, following strict guidelines about addresses and documentation.

Another requirement is that the vehicle must be offered at a public auction. Although it’s rare for members of the public to bid, this step ensures transparency. Furthermore, many states cap storage fees and limit how they accrue. You cannot retroactively charge months of storage before initiating the lien process.

Mechanics liens can also be rejected if you fail to meet licensing or procedural requirements, such as keeping the vehicle on licensed premises or obtaining signed repair orders. Many rejections occur because titling authorities scrutinize mechanics liens carefully, given their history of occasional misuse by automotive businesses.

In contrast, a civil lien can be filed by consumers and non-licensed businesses. This option is ideal for apartment complexes, foreclosure property cleaners, or individuals who invested in a vehicle but lack an automotive license. A civil lien overrides DMV requirements and avoids many procedural hurdles associated with mechanics liens.

Civil liens do not require specific forms or notifications. Filing can often be done at a local county office rather than a central DMV location. Unlike mechanics liens, civil liens have no filing deadlines, allowing you to pursue them even years after the issue arose. Furthermore, you are not required to notify the vehicle owner or lienholder in advance, though the magistrate may ask for additional documentation during the process.

The downsides of civil liens include potentially needing to appear in court in person, which can be time-consuming depending on the court’s calendar. Additionally, there are no pre-formatted forms for a civil lien; you must draft your petition or complaint from scratch. While this can be challenging, it provides flexibility in detailing your claim.

To file a civil lien, you must first draft and submit a petition or complaint to your local county clerk. Once filed, you’ll receive a notice with deadlines or court appearance details. You’ll need to provide documentation such as DMV title paperwork, an affidavit of facts, and a detailed explanation of how you acquired the vehicle. If everything checks out, the court will issue a judgment of ownership.

This judgment is your key to obtaining a title. With it, you can bypass DMV bureaucracy and present it directly to secure a title in your name. No prior title, bill of sale, or mechanics lien is required, as the court’s judgment supersedes these.

While this process is not legal advice and may vary by state, it’s a powerful option for those facing difficulties with traditional titling methods. Costs are typically minimal, including court filing fees and title fees. However, you may need to address additional requirements such as vehicle inspection or insurance before finalizing the title.

A civil lien does not add salvage or bonded restrictions to the title, making it an excellent alternative for obtaining a clean title. This method provides a pathway to resolve title issues when DMV processes are inefficient or unresponsive.