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Texas lien release

Paid off your car in Texas? How the lien comes off the title

TxDMV says the lienholder has 10 days after receiving payment to release the lien. For a paper title, the lienholder mails the title and a release of lien letter back to the owner, who applies at the county tax office to remove the lien. For an electronic lien, the lienholder releases it through TxDMV, the record converts to a paper title, and it is mailed to the owner with no action needed.

See the Texas stepsLender out of business?
Checked against official Texas sourcesLast reviewed Sep 28, 2026. Every fact below links to its source at the end of the page.
After the last payment

What happens to the title in Texas

TxDMV's Electronic Lien and Title program is voluntary for lienholders; when a participating lender releases the lien electronically, TxDMV converts the e-title to a paper title and mails it to the recorded owner.

TxDMV says the lienholder has 10 days after receiving payment to release the lien. For a paper title, the lienholder mails the title and a release of lien letter back to the owner, who applies at the county tax office to remove the lien. For an electronic lien, the lienholder releases it through TxDMV, the record converts to a paper title, and it is mailed to the owner with no action needed.

Your steps

Getting a clear Texas title

Fee: $28 or $33 title fee, depending on the county, paid at the county tax office.

  1. For a paper title, get the title and an original release of lien letter from each lienholder.
  2. Complete Form 130-U (Application for Texas Title and/or Registration).
  3. Take the title, the release of lien letter, and Form 130-U to your county tax office and pay the title fee.
  4. For an electronic lien, wait for the paper title TxDMV mails to the recorded owner after the lender's electronic release.
  5. Keep the original release letter; TxDMV does not accept faxes or photocopies of a release when a lien is still on record for a certified title copy.
If the lender is slow

How long the lender has

Texas gives the lienholder 10 days after payoff.

For consumer and commercial vehicle loans covered by the Finance Code, the lienholder must release the lien within a reasonable time not later than the 10th day after payoff is tendered, and the TxDMV owner page says 10 days after receipt of payment. Source: Tex. Transp. Code 501.115(a); Tex. Fin. Code 348.408 and 353.405(b).

Lender gone or unreachable

If the lienholder is out of business

Compare other states' procedures

TxDMV's bonded title page says you cannot get a bonded title if you are unable to obtain a release of lien or letter of no interest from a recorded lienholder of 10 years or less. When a lienholder cannot be located or is out of business, it points owners to a lawyer to seek a court order awarding ownership free and clear of the lien, and says TxDMV should not be named as a party to that lawsuit.

Optional paid help

Get the Texas lien release finished

Your loan is paid off but the title, the release, or the Texas record still isn't right. We check the path and do the paperwork with you.

  • We find the release path for your state and lender from official sources.
  • We prepare the lien release or clear-title request, and any state form, for you to sign and send.
  • We track the lender and the state until the record shows the lien released.
One-time $89 for a paid-off loan whose title still shows the lien. We show the work, terms, exclusions, and delivery date before payment.
Every guide and official link on this site stays free.
By lender

What your lender says about payoff

Each page covers what the lender publishes about releasing the lien, timing, and contacts.

Official sources

The Texas rules behind this page

Recheck the agency page before you apply. Statute copies from third-party sites are labelled.

Texas title after payoff questions

How long does a lender have to release a lien in Texas?
For consumer and commercial vehicle loans covered by the Finance Code, the lienholder must release the lien within a reasonable time not later than the 10th day after payoff is tendered, and the TxDMV owner page says 10 days after receipt of payment. Source: Tex. Transp. Code 501.115(a); Tex. Fin. Code 348.408 and 353.405(b).
Will Texas mail me the title after I pay off the loan?
TxDMV says the lienholder has 10 days after receiving payment to release the lien. For a paper title, the lienholder mails the title and a release of lien letter back to the owner, who applies at the county tax office to remove the lien. For an electronic lien, the lienholder releases it through TxDMV, the record converts to a paper title, and it is mailed to the owner with no action needed. TxDMV's Electronic Lien and Title program is voluntary for lienholders; when a participating lender releases the lien electronically, TxDMV converts the e-title to a paper title and mails it to the recorded owner.
What if my lender went out of business?
TxDMV's bonded title page says you cannot get a bonded title if you are unable to obtain a release of lien or letter of no interest from a recorded lienholder of 10 years or less. When a lienholder cannot be located or is out of business, it points owners to a lawyer to seek a court order awarding ownership free and clear of the lien, and says TxDMV should not be named as a party to that lawsuit.
How much does a clear title cost in Texas?
$28 or $33 title fee, depending on the county, paid at the county tax office. Confirm the current fee with the Texas title agency before you apply.