What situation requires a lienholder's authorization when applying for a duplicate title?

A lienholder's authorization is required when applying for a duplicate title because the lienholder holds a legal interest in the vehicle until the debt secured by the lien is fully paid off. This means that the lienholder has rights over the vehicle and must consent to any changes related to its title, including the issuance of a duplicate title.

When a vehicle is financed, for example, the lender will often be listed as a lienholder on the vehicle's title. If the original title is lost, the state or DMV will need to verify that the lienholder agrees to the issuance of a duplicate title before proceeding, ensuring that the rights of the lienholder are protected and that the vehicle is not transferred or sold without their knowledge.

In situations where the vehicle has never been registered, the original title is lost, or ownership has changed, the lienholder's authorization is not a requirement as these circumstances do not directly involve a claim or interest held by a lienholder. Thus, the authorization requirement is specifically tied to the existence of a lien.