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Electronic Lien and Title (ELT)

  • Dealers still need to mail their CVR bundle reports daily. The only difference is submitted paperwork will not include the previously issued title if it is held electronically.

     

  • The decision as to whether a dealer sends a validated RD-108 will be made by the lender. The financial institution will have access to the list of electronic lien records once they are registered.

  • Michigan statute requires mandatory participation for all lenders.

     

  • Yes. The "Dealer ID" is entered into the system when transferring a vehicle to another dealer. "Dealer ID" is just another name for the "Dealer License Number." 

     

  • Fees are collected in real-time at the time a transaction is processed on system. A dealer may use an EFT account to process a payment if one is already established.

     

  • The dealer will need the Lienholder ID to process the paperwork.

     

  • A paper title is not issued for electronic title records when a lien is present, therefore no instant or duplicate titles may be issued. However, vehicle titles that are held electronically because a dealer chose not to change their format when the lien was assumed can be printed through the instant title process. A dealer's instant title request must be submitted and processed at a Secretary of State office.

     

  • A paper resale title cannot be converted to an electronic title. It must remain as a paper title.

     


  • Whether to charge a customer a trade-in title fee is a business decision for the dealer. The Michigan Department of State has no rules related to the matter.

  • Auctions do not have access to ELT. Therefore, they cannot accept vehicles with electronic titles because the auction has no way to process the title.

     

  • Corrections to an electronic title should be submitted through an Internal Correction Request. The Vehicle Records Activity Unit (VRAU) will perform the corrections. An email with appropriate supporting documents can be sent to MDOS-MiEFS-ELT-HELPDESK@Michigan.gov.

     

  • A dealership can be listed as a lienholder, but only if the dealership is also the lender.

     

  • ELT lienholders may occasionally receive paper titles, but only for the following circumstances:

    • Owner is moving out of state.
    • Owner trading vehicle out-of-state
    • Owner deceased, new owner transferring ownership into their name.
    • Dealers selling at Auction.
    • Buyer is from another state (In-transit)
    • Adding/removing a named owner
  • An individual may participate in the ELT program but only if they are engaged in the business or practice of financing vehicles. A one-time lien on a vehicle is not a valid reason for ELT participation.

     

  • To conduct a title search use the “Search for ELT” activity.

    If you have the vehicle’s VIN/HIN, the system will tell you if the title is electronic, paper, the ownership information, and the most recent title information. There is no limit to the number of lookups.

  • Yes, it's perfectly acceptable to handwrite the lienholder ID number on the RD-108.

     

  • Electronic lien and titling is not state-to-state.

     

  • The paper titles for vehicles not on the lot are not required when floorplan representatives are conducting a monthly check. The corresponding electronic titles held on the e-Services ELT system are sufficient. Log into e-Services and pull up the list of electronic titles from the Electronic Lien and Title Actions.

  • Vehicle dealers are not eligible to enroll in ELT unless they are also a lender. However there are many benefits for dealers through the Michigan Department of State's ELT e-Services. Dealers will be able to perform the following activities through their e-Services account:

    • Receive a vehicle with an electronic title from another dealer.
    • Transfer a vehicle with an electronic title to another dealer.
    • Assume responsibility for a vehicle lien.
    • View pending vehicle transfers.
    • Search for an ELT vehicle.
    • View a list of currently held electronic titles.

  • Only the electronic titles will be displayed in the e-Services list of titles.

     

  • Dealers are required to upload an RD-108 (or ownership document such as a purchase order), odometer statement and driver's license information, as part of the dealer assumption process. This transfers ownership into the purchasing dealer’s name but does not generate a paper resale title unless selected by the dealer during the assumption process.

    As paperwork is submitted electronically for dealer assumptions, the only hard copies involved in this transaction is a hand-signed odometer statement, the hard copy of which is required to be retained by the dealer in the deal jacket. For dealer assumptions that occur for vehicles traded in with a paper title, all paper will continue to be submitted for deals processed through CVR.

  • A bank account can be updated in the “Manage Bank Account” activity on e-Services. Only one bank account per business is kept on file. Old bank account information is not kept on system.

     

  • Lienholders can request a form to initiate a name change by contacting the MiEFS Help Desk at: MDOS-MiEFS-ELT-HELPDESK@Michigan.gov.

     

  • While the Michigan Department of State will have access to a dealer's ELT vehicle records, a list of all paper and electronic titles held by the dealer must be recorded in the police book.

    Dealers who choose to maintain an electronic police book (or other required records) must be prepared to print a paper copy of the records if requested by law enforcement or Michigan Department of State investigative staff.

  • To ensure that an ELT record is created, the lienholder ID must be entered on the Application for Vehicle/Watercraft Title (TR-11/RD-108/WR-11L). If the lienholder ID is not entered on the Application for Vehicle/Watercraft Title, it will not be an electronic title.

     

  • Dealers do not have to know if a lender is an ELT participant. It is the responsibility of the lienholder (lender) to provide the dealer with the lender's Lienholder ID.

     

  • The account manager can go into e-Services and add or modify the number of users. The manager will be required to submit an Access Request Form (ELT-45).

     

  • To become an Electronic Lien and Title lienholder, you can register for an account through the Michigan Department of State e-Services.

    Go to e-Services

    The Account Manager Application Form (ELT-20) and Access Request Form (ELT-45) forms are required. These forms are available during the online application process. These forms are required by MDOS and allow a unique ELT Identification number to be assigned to your institution. The forms need to be printed, signed, and electronically attached when registering.

  • Your ELT service provider must submit it on behalf of your financial institution.

     

  • While the Michigan Department of State will have access to the record of electronically titled vehicles, a screen shot of the record is also sufficient.

    A dealer can offer a vehicle for sale only if the electronic title is in the dealer’s name in CARS. The dealer does not have to wait for the paper title before selling the vehicle if the title record held electronically.

    A vehicle may be displayed on the lot without a title. However, the title must be present before the final sale can be completed.

  • Soon after you register on e-Services for a Michigan Electronic Lien and Title lienholder account, you will receive an enrollment letter with instructions for accessing your online account.

     

  • The vehicle will already reflect the dealer’s ownership in CARS. The dealer will request a paper title for out of state sale.

     

  • If the lessor is also a lienholder, and participating in ELT, then the process becomes somewhat less burdensome, as the dealer will be able to work with the lessor to keep the title electronic. With an assumption of the lien, the dealer will be able to immediately transfer ownership of the vehicle into the retail customer’s name.

     

  • The lien will be assumed on e-Services and then the title can be processed/transferred through CVR.

     

  • For dealer assumptions and dealer-to-dealer sales, CARS’ records are updated in real time. Title records reflecting satisfaction of loans made by a vehicle owner to their lender will update in CARS upon notification from the lienholder that the final loan payment has been processed. This time can vary.

     

  • There is no wait time for processing vehicles with an electronic title if the dealer has completed the lien assumption process in their e-Services account. The vehicle will be recorded in the system as the dealer's and the dealer may immediately process the plate, registration, and vehicle sale.

  • This process is not automatically automated. The receiving dealership is required to acknowledge or accept the vehicle on e-Services.

     

  • No, existing paper titles prior to ELT program enrollment will not be converted to electronic titles.

     

  • Whether an assumed title is kept in a paper or electronic format will be a business decision for the dealer. If it is anticipated that the vehicle will be resold to a retail customer who may require financing to purchase the vehicle, there are numerous advantages to having the title remain electronic. However, if it is anticipated that the purchased vehicle will be sold at auction, or to an out-of-state purchaser, then obtaining a paper title may be necessary.

     


  • Odometer disclosures are required any time ownership of the vehicle is being transferred.

     

  • If the lienholder is enrolled in ELT, the title needs to be processed as an electronic title.

     

  • The lien assumption process should always be used for incoming vehicles with an electronic title. The only exception would be if the vehicle owner is paying off the loan. In this case, the dealer should wait for the paper title to be issued to the vehicle owner rather than using the dealer assumption process.

     

  • A title fee is charged when a vehicle's ownership is changing because a new title must be issued. If the vehicle ownership is not changing, the dealer may want to obtain a paper title to transfer between stores.

     

  • It is important to assume the lien before processing the transaction. If the lien is not assumed on e-Services, CVR will not show the updated vehicle ownership information and ownership transfer will be prevented.

     

  • This is situational. If there is no lien on the vehicle, and the dealer requests a duplicate title, the title will be reissued in the vehicle owner's name.

    If there is a loan on the vehicle, and the dealer assumed the lien, the dealer assumption process moves vehicle ownership into the dealer's name. A paper title will be issued in the name of the dealer who purchased the vehicle.

    A request for a paper title for a vehicle with an ELT title, in which the dealer does not assume the loan, will not be granted until the lienholder indicates that the loan has been satisfied.

     

  • Eligible vehicle types are:

    • Passenger car
    • Trucks
    • Motorcycle
    • Bus
    • Trailers
    • Trailer Coach
    • Pickup Campers
    • Off-Road Vehicles
    • Watercraft

  • For a paper vehicle title, there is no fee as there is no title transaction. For electronic dealer assumptions there is a title fee due, as a new title record is created due to the ownership change into a dealer’s name.

     

  • Only A and B dealer license types may use an electronic dealer transfer. 

     

  • If an ELT title is printed in error, it will need to be retrieved from the owner and returned to a Secretary of State office, where it can be corrected and produced in an electronic format.

     

  • If the wrong lienholder was entered on an electronic title, an email requesting an internal correction should be sent to the ELT MiEFS Help Desk at MDOS-MIEFTS-ELT-HELPDESK@Michigan.gov. A title correction fee will be charged to the dealership's EFT account.

    If the lienholder entered an incorrect lienholder number, and it was processed as a non-ELT transaction, the title will need to be obtained and taken to a Secretary of State office for a correction.

  • When processing a vehicle transaction on CVR, if an ELT lienholder is being placed, the title will be converted to an electronic format. If no lienholder is in place, the title remains in it paper format.

     

  • Title applications from lienholders who are not enrolled in ELT will be rejected.

     


  • A unique number assigned to businesses after approval of participation in the Electronic Lien and Titling program.

     

  • An Electronic Lien and Title (ELT) service provider is an entity that has entered into a written agreement with Michigan Department of State (MDOS) to provide electronic title and lien services for ELT lienholders.

     

  • An Electronic Lien and Title (ELT) lienholder is a bank, credit union or other organization with financial claim to a vehicle. Their vehicle titles are held electronically by the Michigan Department of State (MDOS).

     

  • The lienholder codes for ELT will begin with LH, followed by a series of numbers, while the non-ELT codes are just numbers without the "LH" prefix.

     

  • If an owner is selling a vehicle with an electronic title, they will need to contact their lienholder. The vehicle buyer will arranged to pay off the seller's lien and, once that is done, a paper title can be issued. The seller then signs the paper title over to the buyer (as the new vehicle owner), and the buyer will take the title to a Secretary of State office to complete the title transfer and have a new title issued in their name.

     

     

  • If a dealer incorrectly issues a title, they need to access the ELT system, identify that the title was processed in error and request an immediate lien delete. Once that has been done, the dealer should contact the Michigan Department of State to have the title pulled.

     

  • If the dealer receiving the vehicle has not completed a Receive ELT Vehicle from Another Dealer activity, the vehicle will still be in the original dealer's name. The dealer receiving the vehicle should select the "Electronic Lien and Title Actions" hyperlink and then the "Pending Transfers" hyperlink for a list of pending transfers to and from the dealership.

  • A lease title is held electronically when the lessor (or other entity) is an ELT lienholder.

     

  • Lienholders will be issued an ELT Identification number after their application has been accepted and processed. The lienholder Identification number for ELT will begin with "LH," followed by a series of numbers (LH#####).

     

  • According to MCL 257.241 - ELT, (2) Except for persons who are not normally engaged in the business or practice of financing vehicles, all secured parties are required to participate in the electronic lien title system.

  • The MiEFS Help Desk is available Monday through Friday from 8:45 a.m. to 4:45 p.m. The Help Desk can be reached by email at MDOS-MIEFS-ELT-HELPDESK@Michigan.gov or by phone at 517-636-0571.

     

  • If a vehicle with an ELT lien is not showing in a dealer's list of titles after it is purchased, the dealer must complete a Lien Assumption activity through their Michigan Department of State e-Services account by accessing the "Electronic Lien and Title Actions" and "Lien Assumption" hyperlinks. The lien assumption activity should be completed on e-Services prior to submitting payment to the lienholder to ensure the proper transfer of ownership.

  • The e-Services process is only for dealer assumptions or dealer-to-dealer transfers. All other transactions will still need to be processed with CVR.

     

  • The title number will need to be looked up in e-Services and entered in the remarks section on the RD-108. Printing a title lookup after processing the dealer assumption will assist with police book and future sale transaction paperwork.

     

  • Dealer-to-dealer sales, known as wholesales, may be performed electronically on e-Services using the dealer transfer process if the title is currently held electronically. Dealers must have an A or B license to perform this function.

     

  • Title fees generated from title transactions on e-Services will not show on the CVR report.

     

  • Under the ELT program, the lienholder is required to perform an electronic transaction to release the lien when a loan is paid off. When the electronic release is completed by the lienholder, the Michigan Department of State automatically prints and mails a paper title to the owner the next business day. At this time, if the address has changed since the original loan, a one-time mailing address can be entered by the lienholder for the title to be mailed once the loan is paid off.

     

  • A lien is deleted if it was added in error to the system or if the lienholder rejects the initial financing contract. A lien is released when it is paid off (satisfied), which results in the generation of a paper title. The title is then mailed to the vehicle owner.

     

  • Once a title is in a dealer’s name, they are eligible to request a paper title at any time. They can pay for an instant duplicate at a Secretary of State office or request the paper duplicate to be mailed to them at no additional fee. The Michigan Department of State mails titles within five business days of the request. If time is of the essence, plan accordingly because USPS delivery times may vary.

     

  • The same paperwork will be submitted (except the title) when processing a transaction in CVR. On the RD-108, please indicate in the remarks section that the title is electronic.

     

  • If a dealer discovers an error with a VIN, they should not attempt to correct the record until they have contacted the MiEFS Help Desk.

  • Paper titles can be converted to electronic titles when the vehicle is resold, and a lien is placed.