Mechanic’s Lien Foreclosure
A signed work order is required, and a copy must be submitted with the transfer of ownership. In addition, a determination must be
made as to where the vehicle was last registered.
FOR MORE INFORMATION – You may refer to the TxDMV Motor Vehicle Title Manual (Chapter 23).
Foreclosure Procedures
1. FORECLOSURE NOTICE – Not later than 30 days after the day on which charges accrue, the mechanic/garage must notify the owner(s) and
lienholder(s) of record by certified mail, return receipt requested, of the charges due and request payment. Notice by newspaper publication
may be permitted (see “Notification by Newspaper” below). The mechanic must include in the notice the physical address where the repairs
were made, the legal name of the mechanic/garage, the taxpayer or employer identification number of the mechanic/garage, and a copy of
the signed work order authorizing repairs. Not later than 30 days after the day on which charges accrue, the mechanic/garage must submit a
copy of the notice (made to the owner(s) and lienholder(s)), a copy of the signed work order, and a $25 administrative fee to the county tax
assessor-collector's office in the county in which the repairs were made. Note: The notice must also be sent to the address that appears on
the work order if the address is different from the address on the motor vehicle record.
2. STORAGE NOTICE, IF APPLICABLE – If any amount of the charges include storage fees, a second notification is required. Refer to Storage Lien
Foreclosure (Form VTR-265-S) for additional notification requirements when storage fees are included. Form VTR-265-S must be submitted if
storage fees are included. Additionally, an original release of lien is required if the title and registration verification indicates a recorded lien.
3. PUBLIC SALE – If charges remain unpaid, the mechanic may sell the vehicle at public sale anytime on or after the 31st day after notice is
mailed to the owner(s)/lienholder(s) or published if such notice was made prior to September 1, 2015. Otherwise, the mechanic may sell at
public sale anytime on or after the 31st day after a copy of the notice or publication was filed with the county tax assessor-collector's office.
The proceeds shall be applied to the payment of charges, and the balance shall be paid to the person entitled to them.
4. APPLICATION FOR TITLE – The highest bidder at public sale must apply for title unless the vehicle is purchased by a licensed motor vehicle
dealer with a current General Distinguishing Number (GDN).
NOTIFICATION BY NEWSPAPER - In lieu of written notification to the owner(s) and any applicable lienholder(s) by certified mail, publication of
the notice(s) in a newspaper of general circulation in the county in which the vehicle is stored may be used only if all of the following apply:
1. The mechanic/garage submits a written request by certified mail, return receipt requested, to the governmental entity with which the motor
vehicle is registered requesting information relating to the identity of the last known owner(s) and any lienholder(s) of record.
2. The mechanic/garage:
• is advised in writing by the governmental entity with which the motor vehicle is registered that the entity is unwilling or unable to provide
information on the last known registered owner or any lienholder of record or
• does not receive a response from the governmental entity with which the motor vehicle is registered on or before the 21st day after the
request under (1) is made.
3. The identity of the last known owner record cannot be determined.
4. The registration does not contain an address for the last known owner of record.
5. The identities and addresses of the lienholders of record cannot be determined.
Note: The mechanic/garage is not required to publish notice if a correctly addressed notice is sent with sufficient postage and is returned as
unclaimed, refused, the forwarding order has expired, or with a notation that the addressee is unknown or has moved without leaving a
forwarding address.
Evidence Required to Transfer Ownership
1. Application for Texas Title and/or Registration (Form 130-U)
2. Mechanic's Lien Foreclosure (Form VTR-265-M)
3. Verification of Title and Registration – Verification of title and registration from the state of record. If not available, the following
must be provided:
• If a mechanic/garage sends a request for title and registration verification to the state of record (by certified mail, return receipt
requested) and is informed by letter that due to the Driver's Privacy Protection Act restrictions the state will forward the
mechanic's notification to the owner(s) and lienholder(s) for notification purposes, then the original letter(s) from the state of
record and certified receipts for each notification sent to that state will be acceptable, or
• If notification is made by newspaper publication, proof that a correctly addressed request for the name and address of the last
known registered owner(s) and lienholder(s) was sent to the state of record (by certified mail, return receipt requested). Proof
consists of a copy of the request and the date stamped certified return receipts for the request sent to the state of record.
4. Proof of Notifications
• Notices by Certified Mail – Proof consists of the date stamped receipts for certified mail and return receipt, including any
unopened certified letter(s) returned as undeliverable, unclaimed, refused, or no forwarding address.
• Notice by Newspaper Publication (only if applicable) – Proof consists of the certified request sent to the state of record requesting
verification of owner(s) and lienholder(s) AND a legible photocopy of the newspaper publication, including the name and date of
the publication.
• Receipt from County Tax Assessor-Collector – Dated receipt showing $25 administrative fee was paid. This confirms filing with the
county tax assessor-collector's office.
5. Liability Insurance – A copy of current proof of liability insurance in the applicant's name if applying for registration.
6. Copy of Signed Work Order
7. Out of State Vehicles – Texas Vehicle Inspection Report (and certified weight certificate if the vehicle is a commercial vehicle).
VTR-265-M Rev 11/20 Form available online at www.TxDMV.gov Page 2 of 2
