In Florida, tow liens serve as a legal mechanism allowing towing companies to claim a lien on a vehicle for unpaid towing and storage fees. This process is governed by Florida Statutes 713.78, which outlines the rights and responsibilities of both the towing company and the vehicle owner. Understanding the Florida tow lien process is crucial for towing operators, vehicle owners, and lienholders to ensure compliance with state laws and to protect their respective interests.
What Is a Tow Lien?
A tow lien is a legal claim placed on a vehicle by a towing company to secure payment for towing and storage services rendered. Under Florida law, if a vehicle is towed and the owner fails to pay the associated fees, the towing company may assert a lien on the vehicle. This lien allows the company to retain possession of the vehicle until the debt is settled, and if unpaid, may lead to the sale of the vehicle to recover costs.
The Florida Tow Lien Process
The Florida tow lien process involves several critical steps to ensure legality and compliance:
1. Vehicle Tow and Storage
The process begins when a vehicle is towed and stored by a licensed facility. This may occur due to illegal parking, abandonment, repossession, or at the request of law enforcement. Florida law mandates that the towing company document the tow with detailed information including:
- Vehicle identification number (VIN)
- Make, model, and color of the vehicle
- Towing date, time, and location
- Storage facility name and address
2. Conduct a Records Search
Within 3 business days of the tow (excluding weekends and holidays), the tow yard must request ownership and lienholder information from the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) or a national title search vendor if the car is registered out of state.
3. Notify All Interested Parties
Once ownership and lien information is retrieved, the towing company has 7 business days to mail out the formal Notice of Lien via certified mail with return receipt. This notice must be sent to:
- The last registered owner of the vehicle
- Any lienholders (banks, finance companies, etc.)
- The insurance company listed on the record (if applicable)
The Notice of Lien includes:
- Amount due (towing + storage)
- Description of the vehicle
- A clear deadline for payment
- Warning that failure to respond may lead to the vehicle being sold
4. Wait Period and Redemption Opportunity
Once the notice is sent, the owner and lienholders have a 15-day period to respond. They can either:
- Pay the fees and reclaim the vehicle
- Dispute the lien (in some rare cases)
- Do nothing
If they take no action, the towing company can then proceed with the next steps toward claiming ownership or initiating a public sale.
5. Publish Public Notice of Sale
If no payment is received after the redemption period, the towing company must publish a Public Notice of Sale in a newspaper that circulates in the county where the vehicle is stored. This notice must appear once, at least 10 days before the auction.
The ad must include:
- Description of the vehicle (make, model, year, VIN)
- The name and location of the towing company
- The date, time, and location of the auction
- A statement declaring the vehicle will be sold to the highest bidder
6. Host a Public Auction
After all notices and deadlines have passed, the vehicle is sold to the highest bidder at a public auction. These auctions can take place at the towing facility, online (if allowed in your county), or at an approved location.
Towing companies must keep detailed records of the auction including:
- Final bid amount
- Winning bidder’s information
- Copy of the newspaper advertisement
- A notarized bill of sale
The proceeds from the auction go first toward covering towing and storage fees. If there is a surplus after those are paid, it must be held in escrow for 1 year for the previous owner to claim. After that, any unclaimed funds can typically be retained or reported to the state, depending on local laws.
7. Title Transfer and Lien Satisfaction
Once the vehicle is sold, the towing company needs to transfer the title to the new buyer. This step can be tricky—especially when dealing with out-of-state or previously damaged titles.
That’s where we come in.
We handle the entire title transfer process, including:
- Submitting necessary documents to the DMV
- Issuing a clean Florida title
- Helping new owners get specialty or fleet plates, if applicable
- Ensuring all documents are filed quickly to avoid penalties
Our same-day fast title service means no long wait times or return trips for our clients.
Why Tow Liens Are Used
Tow liens are utilized primarily for the following reasons:
- Recovery of Costs: Towing companies incur expenses when retrieving and storing vehicles. The lien ensures they can recover these costs if the vehicle owner fails to pay.
- Legal Ownership Transfer: If a vehicle remains unclaimed, the lien process allows the towing company to obtain legal ownership and sell the vehicle to recoup losses.
- Deterrence: The possibility of a lien and subsequent sale of the vehicle encourages owners to promptly settle their debts.
How Auto Tags & Titles Florida Assists
At Auto Tags & Titles Florida, we specialize in navigating the complexities of the Florida tow lien process. Our services include:
- Documentation Preparation: We assist in preparing all necessary documents required for asserting a tow lien, ensuring accuracy and compliance with state laws.
- Notification Management: We handle the certified mailing of lien notices to all relevant parties within the mandated timeframe.
- Auction Coordination: If the vehicle remains unclaimed, we coordinate the public auction process, including advertising and conducting the sale.
- Title Transfer Assistance: Post-auction, we facilitate the transfer of ownership, ensuring the new owner receives a valid title promptly.
Navigating Tow Liens with Confidence
If you’re a towing operator or vehicle storage facility in need of assistance with the Florida tow lien process, look no further. At Auto Tags & Titles Florida, we offer expert services in vehicle title transfers, auto titles, and comprehensive tag dealer services. Our experienced team in Davie, FL is ready to help you navigate the complexities of the lien process, ensuring legal compliance and efficient resolution.
Contact us today to learn more about how we can support your business needs.