Agreement to Repair Motor Vehicle with Authorization for Lien and Sale on Nonpayment of Repair Charges

When a person repairs, tows or stores a vehicle and has not been paid by the owner of the vehicle for services rendered, that person is entitled to a lien against the vehicle. A lien generally arises (becomes effective, depending on state law) at the time the registered owner is presented with a written statement of charges for completed work or service.

For maximum protection of the potential lien holder, a contract provision should give the lien holder the right to sell the property to satisfy the lien. While a lien holder relying on a common-law lien will acquire the right to detain the property until payment of the debt, the lien holder will not necessarily acquire the right to enforce the lien by selling the property unless the right is conferred by statute or by contractual agreement.

If the vehicle in your possession is in another state (other than where it arose), and you are in that state to seize the vehicle, you must generally follow the lien sale laws of that state.

This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.