How to know if a vehicle is under lien and how to remove the lien — A guide for buyers and sellers
1 Sept 2025
In the business of buying and selling vehicles, acquiring a seized car without knowing it can pose a considerable legal and economic risk. This guide is intended for dealers and motor professionals who seek to avoid problems with encumbered cars and want to know how to proceed if they already have one in stock.
What does it mean for a vehicle to be seized?
A seizure on a vehicle implies that there is an outstanding debt recognized by an authority (usually the Tax Agency, Social Security, or a financial entity). This does not necessarily prevent its sale, but it complicates the transfer of ownership and may block certain procedures.
For a professional, reselling a seized car without informing the buyer can lead to legal and even criminal responsibilities (concealment of assets, fraud, or hidden defects).
How to check if a car is seized
Before accepting a car as part of payment or buying it for resale, it is essential to check its legal status:
Reduced report from the DGT: Free, indicates if there are any incidents.
Complete report from the DGT: Reflects seizures, seals, leasing, and other burdens. Obtained with the license plate or chassis number.
Register of Movable Property: Provides complementary information, especially in private financings.
These checks should be part of the internal protocol of any dealership or buying and selling business.
What to do if you receive a seized car in stock
Having an encumbered vehicle in inventory is not illegal, but reselling it without communicating its situation may be. Options:
Inform the buyer and reflect it in writing in the contract.
Negotiate a discount on the sale price to offset the lifting cost.
Assume the seizure as a company, lift it, and resell the car without burdens.
In all cases, it is recommended to document each step and keep receipts.
Process to lift a vehicle seizure
Identify the creditor (the organization or company that imposed the seizure).
Contact and agree on payment: it can be one-off or in installments.
Obtain payment or agreement receipts.
Submit a lifting request at the Traffic Headquarters, accompanied by the documentation.
Wait for the resolution and confirm that the seizure disappears from the DGT report.
This process can take between 1 and 4 weeks, depending on the agency involved.
What if it can't be paid?
Expiration of the seizure: If it is not renewed in 4 years, you can request its administrative cancellation.
Sale with informed burden: Legal if it is clearly reflected in the contract.
Second Chance Law: Uncommon in dealerships, but applicable if the seized individual is an insolvent self-employed person.
Can a seized car be sold?
Legally yes, as long as the buyer is aware of and accepts the situation in writing. However, from a commercial point of view, it is more advisable to resolve the burden before the sale to avoid conflicts.
A purchase contract with a clause acknowledging the seizure can protect the professional against claims.
Decommissioning of seized vehicles
Temporary decommissioning: Recommended while the seizure is resolved.
Permanent decommissioning: Only possible if there is no judicial seal. It is processed with an authorized CATV.
Common Practical Cases
Vehicles from renting, leasing, or auctions.
Cars delivered as part payment by indebted individuals.
Inherited stock from other companies or judicial batches.
In all cases, prior verification is key.
FAQs for professionals
What happens if I sell a seized car without knowing it? You could incur responsibility if you do not inform. It is considered a hidden defect.
Can I resell a seized car? Yes, if the buyer accepts the burden in writing.
How do I lift a seizure already being the owner? By following the payment process and request to the administration.
Does a seizure block the change of ownership? Not always, unless there is a judicial seal.
Can I deduct the lifting cost? If you assume it as a company, you can include it as a deductible expense.
Conclusion
Detecting and managing vehicle seizures is part of the daily work of any VO professional. A small oversight can lead to legal problems or loss of margin.
Therefore, having clear protocols, updated reports, and if possible, a document manager to centralize these processes can make the difference between a safe operation and a headache.
