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Is my car being sold? Lien sales and auctions in Texas
If a tow company or storage lot keeps a car and the bill is not paid, the car can be sold after the notices and waiting periods the law sets. The notice you get tells you which rules apply and how much time you have.
General information, not legal advice. Check your notice: the dates printed on it are the ones that count. Count calendar days unless the rule says business days.
How a towed car can be sold
A licensed storage lot sells an unclaimed vehicle (Vehicle Storage Facility Act)
Who this covers: Most private-property tows and many police tows end up at a TDLR-licensed vehicle storage facility (VSF).
Notice by newspaper or a TDLR-approved website is allowed only in limited cases (sec. 2303.152). A 'nuisance' vehicle can follow a shorter path (sec. 2303.1545).
Day 1 to day 5 after the lot receives the car (day 14 if registered in another state)
The lot must mail a first notice by certified mail to the registered owner and the main lienholder, no sooner than 24 hours after it gets the car. A late notice pushes back every later deadline, and storage before the notice is limited.
Source: Texas Occupations Code ch. 2303 (Vehicle Storage Facility Act)
10 days after the first notice
If no one has claimed the car, the lot treats it as abandoned and reports it to police if the local agency requires that. Police may take over the disposal under Transportation Code ch. 683.
Source: Texas Occupations Code ch. 2303 (Vehicle Storage Facility Act)
Day 15 to day 20 after the first notice
The lot sends a second notice to the owner and each lienholder. It must say that not claiming the car before the 30th day after notice counts as giving up all rights and agreeing to a public sale.
Source: Texas Occupations Code ch. 2303 (Vehicle Storage Facility Act)
On or after the 31st day after the second notice
If the car is still unclaimed and police have not taken custody, the lot may sell it at a public sale. The 30 days run from the second notice, not the first (sec. 2303.154(b)(3); TxDMV's storage-lien chart). Sale money pays the allowed charges first; the lot must pay any extra to the person entitled to it.
Source: Texas Occupations Code ch. 2303 (Vehicle Storage Facility Act)
Police auction an abandoned vehicle (Transportation Code ch. 683)
Who this covers: Vehicles police take into custody as abandoned, and vehicles a storage lot or garage reports as abandoned.
In a county of 3.3 million people or more (Harris County), an agency may not keep for its own use a vehicle it took into custody that went to a privately owned storage lot (sec. 683.016(d)).
Within 10 days after police take custody (or get the garage's report)
The agency mails a certified notice to the last registered owner and each recorded lienholder. It names the vehicle and where it is held.
Source: Texas Transportation Code ch. 683 (abandoned motor vehicles)
Up to 20 days after the date of the notice
The owner or lienholder may claim the vehicle by paying the towing, preservation and storage charges. Not claiming it in time counts as giving up all rights and consenting to a public auction.
Source: Texas Transportation Code ch. 683 (abandoned motor vehicles)
After that
The agency may sell the vehicle at a public auction with proper notice. The buyer gets title free of liens.
Source: Texas Transportation Code ch. 683 (abandoned motor vehicles)
90 days after the sale
After the agency takes out its allowed costs, it holds the rest of the sale money for 90 days for the owner or lienholder.
Source: Texas Transportation Code ch. 683 (abandoned motor vehicles)
A garage or other lienholder sells a vehicle (Property Code ch. 70)
Who this covers: Repair shops and others holding a possessory lien who are not using the storage-lot law.
Within 30 days after the charges accrue (vehicles under 16,000 lbs.)
The lienholder must give written notice and file notice with the county tax assessor-collector, with a $25 filing fee.
After the 31st day after the county filing
If the charges are still unpaid, the lienholder may sell the vehicle at a public sale and apply the money to the charges.
After the sale
If the person owed the extra money cannot be found, it goes to the county treasurer. Unclaimed after two years, it becomes county money.
Last checked .