Idaho § 49-511 - Cancellation or discharge of lien or encumbrance
Full text of Idaho Idaho Statutes § 49-511 — Cancellation or discharge of lien or encumbrance, with citation guidance and answers to common questions.
§ 49-511. Cancellation or discharge of lien or encumbrance
(1) When a lien or encumbrance is canceled or discharged, the lienholder shall provide notice of such cancellation or discharge to the department within thirty (30) days. If the lienholder was holding the paper certificate of title, he shall note the cancellation or discharge on the certificate of title in the space provided, over his signature, or by some other legal document, discharging the encumbrance, and shall deliver the paper certificate of title to the owner within thirty (30) days of receipt of payoff of the encumbrance. If the lienholder was holding an electronic title, he shall send the department an electronic transaction that directs the department to provide a paper title to the owner free of the lienholder’s lien within thirty (30) days of receipt of payoff of the encumbrance.
(2)(a) Notwithstanding the provisions of subsection (1) of this section, when an Idaho vehicle dealer licensed pursuant to chapter 16, title 49 , Idaho Code, cancels or discharges a lien or encumbrance, the lienholder shall provide notice of such cancellation or discharge to the department within ten (10) business days of receipt of verified funds. If the lienholder was holding the paper certificate of title, such lienholder shall note the cancellation or discharge on the certificate of title in the space provided, over his signature, or by some other legal document, discharging the encumbrance. If the lienholder has received authorization from the current owner to do so, by personal notification from the current owner, by power of attorney, or by other legal document granted to a dealer, the lienholder shall send the paper certificate of title to the dealer within ten (10) business days of receipt of verified funds to pay off the encumbrance.
(b) For the purposes of this subsection, "verified funds" means funds when such funds credit to the lienholder’s account and become final in accordance with the law or rules applicable to the method by which the funds were transmitted to the lienholder.
[49-511, added 1988, ch. 265, sec. 126, p. 648; am. 1991, ch. 153, sec. 6, p. 365; am. 1993, ch. 298, sec. 3, p. 1099; am. 1994, ch. 297, sec. 1, p. 941; am. 2014, ch. 38, sec. 13, p. 81; am. 2026, ch. 143, sec. 2, p. 667.]
Source: official Idaho text · Last verified 2026-08-27
Frequently Asked Questions About Idaho § 49-511
What does Idaho Statutes § 49-511 cover?
Section 49-511 ("Cancellation or discharge of lien or encumbrance") is part of the Idaho Statutes, the codified statutory law of Idaho. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Idaho § 49-511?
A common citation format is "Idaho Statutes § 49-511" (Idaho). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Idaho law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Idaho official source linked on this page or consult a licensed Idaho attorney.
How does Idaho § 49-511 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Idaho can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Idaho.