What must happen if there is a lienholder before a vehicle can be transferred?

For a vehicle to be transferred when there is a lienholder involved, it is necessary for the lienholder to release the lien on the vehicle. This is because the lienholder, typically a financial institution or bank, has a legal claim to the vehicle due to the outstanding loan or debt for which the vehicle is collateral. Until the debt is satisfied and the lien is released, the previous owner cannot transfer ownership legally.

Once the lien is released, the vehicle title can be updated to reflect the new owner, ensuring that the new owner can clear any potential claims against the title and hold full ownership free of any debts associated with the vehicle.

The other options, while they might pertain to the process of buying or selling a vehicle, do not directly influence the legal requirement for transferring ownership in the presence of a lien.