How to Put a Lien on a Car in Alabama: Forms, Filing, and Release

To put a lien on a car in Alabama, you file an application with the Motor Vehicle Division of the Department of Revenue, submit the original Alabama certificate of title, attach documentation supporting your claim, and pay a $15 state fee.¹ Once the lien is recorded, your name appears on the title as the lienholder, and the owner cannot sell or transfer the vehicle until the debt is cleared. The exact form and paperwork depend on why you’re claiming the lien.

Figure Out Which Type of Lien You Have

Three situations account for most vehicle liens in Alabama, and each requires different supporting paperwork.

A consensual lien is what you create when you sell a car and let the buyer pay you over time. Both parties sign a written security agreement covering the loan terms, and the buyer signs the application to record your lien on the title.² This is the most common reason a private individual files lien paperwork.

A mechanic’s lien arises automatically when a repair shop performs work and the customer refuses to pay. Alabama law gives the shop a lien on the vehicle for the labor and materials, whether the price was set in advance or based on the reasonable value of the work. Note one ranking rule: if a secured party had already perfected an interest in the car before the repairs, the mechanic’s lien sits behind that earlier interest unless the secured party authorized the work.³

A judgment lien comes from winning a lawsuit. Before recording it against a specific vehicle, you first file a certificate of the judgment with the probate judge in the county where the debtor’s property is located.⁴ Then you apply through the Department of Revenue to attach the lien to the vehicle’s title.

Use the Right Form

Which form you use depends on whether you’re a “designated agent” of the Department of Revenue. Banks, credit unions, and dealerships usually are, and they file Form MVT 5-1E electronically through the Alabama Title System. Private individuals and businesses that aren’t designated agents use Form MVT 20-1.⁵

Form MVT 20-1 works only when the car already has an Alabama title and ownership isn’t changing at the same time you’re recording the lien.⁵ Both the vehicle owner and the lienholder must sign it.

What to Include With the Application

On the form itself, you’ll need:

The Vehicle Identification Number (VIN), year, make, and model
The registered owner’s full legal name and mailing address
The lienholder’s full legal name and mailing address
The date of the security agreement

With the completed form, submit the original Alabama certificate of title and the document that proves your lien:

For a consensual lien, a copy of the signed security agreement
For a mechanic’s lien, the itemized repair invoice or signed work order
For a judgment lien, a certified copy of the court judgment

Where to File and What It Costs

Alabama law puts the sequence on the owner and lienholder together: the owner signs the application and hands it, along with the title and fee, to the lienholder, who then forwards everything to the department. The statute says this should happen “immediately.”² Mail the package to:

Titles & Vehicle Inspections
P.O. Box 327640
Montgomery, AL 36132-7640⁶

The state fee is $15. A designated agent adds a $1.50 commission on top of that.¹ County licensing offices acting as designated agents can add another $1.50 for processing and mailing.⁷ Some counties charge additional local fees. Plan on $15 if you mail directly, $16.50 through a basic designated agent, and $18 or more through a county office. Confirm the local total before you pay.

What Happens After the MVD Records the Lien

The Motor Vehicle Division issues a new certificate of title listing your name and address in the lienholder section and mails it to the first lienholder of record.² With your lien on the title, the owner can’t transfer clean ownership without paying you off and getting your release. Any buyer running a title check will see the claim.

Watch the Four-Year Automatic Release

Alabama treats certain older-vehicle liens as satisfied after a set period even if the debt is still outstanding. If the vehicle is 12 or more model years old, the lien is automatically released four years from the date of the security agreement recorded on the title. Travel trailers and vehicles over 12,000 pounds are exempt from that rule.⁸

If you’re financing the sale of an older car with a payment plan that runs longer than four years, apply for a second title through a designated agent before the four-year mark to keep your lien perfected.⁸ Miss the deadline and you start perfection over from scratch.

Releasing the Lien Once You’re Paid

When the debt is satisfied, you have to release the lien. The Department of Revenue is authorized to require that releases be submitted electronically within 10 days of payoff.⁸ The administrative rules cover the release procedure and continuous perfection.⁹ After you sign and submit the release, the owner can apply for a clean title without your name on it. Sitting on the release keeps the owner from selling or trading the car, so handle it promptly once you’ve been paid.

1
Alabama Legislature. Alabama Code 32-8-6 – Transaction Fees; Commissions
2
Alabama Legislature. Alabama Code 32-8-62 – Procedure When Owner Creates Security Interest
3
Alabama Legislature. Alabama Code 35-11-110 – Lien Declared
4
Justia Law. Alabama Code 6-9-210 – Certificate of Clerk or Register to Be Filed With Probate Judge
5
Alabama Administrative Code. Alabama Administrative Code 810-5-75-.24 – Liens To Be Recorded
6
Alabama Department of Revenue. Mailing Addresses
7
Alabama Legislature. Alabama Code 32-20-5 – Commission Fee; Collection of Commissions
8
Alabama Legislature. Alabama Code 32-8-64.2 – Release of Certain Liens
9
Alabama Administrative Code. Alabama Administrative Code Rule 810-5-75-.21 – Lien or Security Interest Releases and Continuous Perfection of Lien or Security Interests