Chapter 8, Section M:|
Transfer of Equity/Lien
Revised August 13, 2008
A "transfer of equity" is an inter-party agreement between:
The purpose of a transfer of equity is to allow title to a vehicle or vessel to be transferred to a new owner subject to an existing loan, with the agreement of the lender.
The “Change of Equity Certification” form (MVD-10044) is generally used in lieu of both the Bill of Sale and Release of Lien. Because the lienholder is a party to the transaction, a separate release of lien is not required.
If, however, there is consideration
paid for the vehicle or vessel over and above the buyer's agreement
to take responsibility for the unpaid lien balance, a bill of sale
is required and must reflect the correct total amount paid (i.e. the
unpaid balance plus the amount of additional consideration).