INSTRUCTIONS FOR FILING A GARAGEKEEPER’S LIEN
TITLE 25 Del.C. Sections 3901-3910
I. OBTAIN THE NAMES AND ADDRESSES OF ALL OWNERS AND OTHER
PARTIES WITH AN INTEREST IN THE PROPERTY.
A. For a motor vehicle.
1. Obtain a statement for each vehicle from the Division of Motor
Vehicles, P.O. Box 698, Dover, DE 19901 by referencing the Vehicle
Identification Number (VIN). This will list the last registered owner of
the vehicle and any outstanding liens. Lien certificates must be
obtained not more than 120 days prior to filing with the Court.
2. Contact the Delaware State Police Auto Theft Unit to obtain a report for
each vehicle. Auto theft reports must be obtained not more than
120 days prior to filing with the Court.
3. If there is no record of ownership of the vehicle in Delaware, and the
vehicle does not have a tag, that information must be included on the
application. If the vehicle has a tag from a state other than Delaware,
obtain a statement of ownership or lien certificate from the Division of
Motor Vehicles of that state.
B. For other property.
1. If the property is of a type for which registration of ownership is
required by law, the appropriate agency must be checked for
ownership.
2. If the property is of a type for which liens or other interests must be
filed to be effective, the appropriate agency must be checked for liens.
II. FILL OUT THE GARAGEKEEPER’S PACKET.
A. Obtain a Form 50 for the individual signing the application, authorizing
him/her to represent an artificial entity.
B. One packet should be filled out for each item of property.
C. The Court must be provided with an envelope addressed to the owner and
any other parties with an interest in the property. Green cards and white
slips must be included. Follow the instructions below in filling out the
application.
D. Instructions for filling out an “Application to Conduct a Lien Sale,” Form
No. 40:
1. DESCRIPTION OF THE PROPERTY. Give a complete description of
the property including any applicable identification numbers. (For a
motor vehicle, give the make, year, model, VIN number and tag
number, if available.)
2. APPLICANT IS. State the category listed under 25 Del.C. §3901
which applies to the applicant (e.g., hotelkeeper, innkeeper, garage
owner, auction service, other person who keeps a livery, boarding
stable, garage, airport, marina or other establishment – see §3901 for
further information).
3. BASIS FOR CLAIM.
a. Ground for claim. State whether the claim is for repairs,
towing, storage, boarding, etc. If the claim is for more than
one service, list all applicable services upon which the claim
is based.
b. How applicant obtained property. Briefly state how you
obtained the property. For example, did the owner bring the
property to you for repairs? Did you tow the property for a
third person?
c. Date applicant obtained property. State the day, month,
and year on which you received the property in your
possession.
d. From whom applicant obtained the property. Give the
name and address of the person with whom you directly
dealt in obtaining the property. For example, the person who
brought the property in for repairs or the person who
requested that you tow the property.
4. AMOUNT OF CLAIM. State the dollar amount of the claim. If the
claim is based on more than one ground, e.g., both repairs and
storage, indicate the amount of the claim which is for each ground.
Claims should be for a commercially reasonable amount. The
amount charged per day should be listed if the claim is for storage
or boarding.
5. OTHER PARTIES WITH AN INTEREST IN THE PROPERTY. You
should list all persons with any other form of interest (such as a
security interest or lienholder) in the property. A reasonable effort
to locate the names and addresses of all parties with an interest in
the property is required. This includes checking with the
appropriate agency for any property for which liens or other
interests must be filed to be effective. If the property is a motor
vehicle, a certificate of lien must be attached. If the motor vehicle is
not registered in Delaware (or if Delaware has no record of
ownership of other property for which registration of ownership is
required), property liens must be checked along with ownership in
any other state which the Court has required you to check.
6. DESCRIBE ATTEMPTS TO LOCATE. If you have been unable to
locate the owner/other parties with an interest in the property,
describe all efforts which you have made to locate the name and
address of such persons. You must certify here that you have
checked for owners and other parties with an interest in the
property in all states with which the Court required you to check.
Copies of any requests for information and/or information received
should be attached. If the property is a motor vehicle and does not
have a tag, include that information in this section. You must also
search the vehicle, including the glove compartment, for any
information on the owner when the lien certificate indicates that the
owner is unknown.
7. NOTIFICATION. All letters or bills which you have sent or given to
the owner(s) and other parties with an interest in the property and
the date you sent or gave the letters or bills must be listed. A copy
of the letters or bills and an affidavit or other proof of mailing or
receipt must be attached. If you have an unknown owner, the tow
slip must be attached.
8. PLACE, DATE AND TIME OF SALE. You must enter the address
for the sale. The sale should be held at the location of the vehicle.
The Court will set the sale date for approximately 60 days from the
date the Court processes the application. The sale time will be set
for 10:00 a.m.
E. CHECKLIST FOR DOCUMENTS TO BE ATTACHED TO APPLICATION.
1. A copy of any work order(s), including tow slip(s) and repair
invoices.
2. A copy of any demand letter(s) made to the registered owner and
any other lienholder of the property, including the letter indicating
that the garagekeeper has possession of the property.
3. An affidavit or other proof of mailing of the demand letter.
4. A lien certificate obtained from the Delaware Division of Motor
Vehicles, dated no more than 120 days prior to filing with the Court,
for each vehicle exhibiting a Delaware tag or no tag.
5. A lien certificate or statement of ownership from the Division of
Motor Vehicles from the corresponding state, dated no more than
120 days prior to filing with the Court, for each vehicle exhibiting a
tag from a state other than Delaware.
6. A report from the Delaware State Police Auto Theft Unit, dated no
more than 120 days prior to filing with the Court.
7. A copy of the Form 50.
Finally, you should sign the application in front of a notary or court official.
III. RECEIPT OF GARAGEKEEPER’S LIEN APPLICATION BY THE PARTIES.
A. UNCLAIMED OR REFUSED WHEN PROPERTY IS NOT A MOTOR
VEHICLE. If the notice to conduct a garagekeeper’s lien sale is returned to
the Court from either the registered owner or the lienholder marked by the
post office as “Unclaimed” or “Refused”, the Court will re-send the notice
by 1
st class mail with a certificate of mailing.
B. IF ADDRESS IS BAD. If the application to conduct a lien sale is returned
to the Court from either the registered owner or the lienholder with
notification from the post office that the notice is undeliverable, and a
subsequent search cannot locate the party, an additional affidavit must be
submitted to the Court outlining other steps taken to secure a good
address.
C. IF SALE DATE MUST BE CHANGED. If the sale date must be changed
from the original sale date listed in the notice(s) to the registered owner
and any other lienholder of the property, the interested party or parties
must be re-noticed of the new sale date. The Court will re-send the
notice(s), which will consist of the “Application to Conduct a Lien Sale,” the
“Garagekeeper’s Notice of Sale” and the “Answer to Garagekeeper’s
Claim.”
IV. PROVIDE NOTICE OF THE SALE.
A. At least 15 days prior to the sale, you must advertise the sale for at least
one day in a newspaper published or circulated in the county in which the
sale is to be held. The advertisement must contain a description of the
property including any applicable identification information and the date,
time, and location of the sale. In the case of a motor vehicle, the
advertisement must include the make, model, year and VIN. You must
request that the newspaper mail you an affidavit referencing the
advertisement. The original affidavit should be filed with the Court at
least 5 days prior to the sale, and must include an original copy of
the advertisement.
B. A signed handbill must be posted in five or more public places at least 15
days prior to the sale. The court must be provided with a copy of the
handbill along with a list of the posting locations 5 days prior to the sale.
V. FILE PROOFS OF PUBLICATION WITH THE COURT. Include court case
numbers for property listed in the advertisement. An “Authorization for
Garagekeeper’s Sale,” Form No. 43, cannot be furnished until all of the above
conditions have been met. THE SALE CANNOT GO FORWARD WITHOUT
THIS AUTHORIZATION FORM. A “Disposition of Proceeds,” Form No. 44
(which you complete to tell the Court how you have disbursed the proceeds of
the sale) will be issued to you when you receive the authorization form from the
Court.
VI. FILE THE DISPOSITION OF PROCEEDS FORM. A notarized original of the
disposition of proceeds sale, plus one copy, must be filed with the Court within 10
days following the sale.
VII. IF THE PROPERTY IS A MOTOR VEHICLE, RECONTACT THE AUTO THEFT
UNIT TO OBTAIN A NEW FORM MV-214. The “Authorization for
Garagekeeper’s Sale,” Form No. 43, should be taken to the Auto Theft Unit to
receive a Form MV-214. This will notarize that the motor vehicle sold is the same
vehicle the authorization was issued for. The Form MV-214 should be taken to
the Division of Motor Vehicles with the “Authorization for Garagekeeper’s Sale,”
Form No. 43 and the “Disposition of Proceeds,” Form No. 44, so that a clear
title
may be issued.
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