How to fill out the VTR-266 in Texas
A field-by-field walkthrough of the Texas VTR-266 (Prescribed Form for Release of Lien) for licensed used car dealers — what goes in every section, who signs what, and the documents you attach. Verified against the official form, TxDMV's lien page, and the Transportation and Finance Codes as of October 2026.
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Filling out the TX VTR-266 after a sale:
- What it is
- TxDMV's prescribed release of a vehicle lien, signed by the lienholder after the debt is paid
- Who completes it
- The lienholder. On a BHPH note that's your dealership, signed by an authorized agent
- Where to file it
- You give it to the owner. The owner files it with the title and a Form 130-U at the county tax office
- Processing time
- TxDMV says the lienholder has 10 days after receipt of payment to release the lien
- Cost
- No fee for the release. TxDMV lists the owner's title fee as $28 or $33, depending on the county
This guide is informational and does not replace the official Texas instructions. Always confirm the current form and procedure with the Texas Department of Motor Vehicles before you file.
The VTR-266 is one car's paperwork. A 20-second read on your lot, and the tax-and-fee math for the whole deal — built for dealers, no signup. Free calculators dealers actually use — no signup, no email.
DealerVLO fills the official Texas VTR-266 straight from your deal: on a buy-here-pay-here note your dealership carries, the BHPH ledger prints it with the VIN, year, make, body style and model, the Texas plate when the deal recorded one, your dealership as lienholder with its address, phone and email, and the Date Lien Satisfied from the last payment on the ledger (blank until the ledger shows the note paid off). The title number, authorized agent name, and the certification's signature, printed name and date stay blank for your signer. $29/month, free to try — cancel any time.
What the VTR-266 is and why it matters
VTR-266 is TxDMV's prescribed form for releasing a lien on a Texas title. If you run buy-here-pay-here, you're the lienholder on every note you carry, so this is your form: when the customer makes the last payment, your dealership releases the lien and hands the owner what they need to get a clean title.
The other side matters too. When you take a trade-in that still has a loan on it and pay off the lender, the lender releases its lien, not you, and you need that release before the car can be retitled. This guide walks the form box by box from the dealer's seat, then covers the deadline, e-Title liens, and what the owner does with the release.
The current revision is VTR-266 (Rev 10/16). It's one page: a Vehicle Information section, a Lien Information section, and a Lienholder Certification the authorized agent signs. TxDMV accepts three ways to release a lien: the lien release section on the front of the title, this form, or a letter on the lienholder's letterhead. All three need an original signature and a date. A copy isn't accepted.
Documents to have before you start
The release isn't filed by you. It goes to the owner, who takes it to the county tax office with the title. Have these in hand before your agent signs.
- The payment history showing the note paid in full — The Date Lien Satisfied is the day the final payment came in. Make sure that payment has actually cleared before you sign.
- The Texas title, if the lien is on a paper title — TxDMV says that when the lien was recorded on a paper title, the lienholder mails the title to the owner. Copy the title number onto the form if you have it.
- Your authorized agent's ID or business card, if the owner is applying for a certified copy of title — The form says that when it's used with a VTR-34 (certified copy of title), it needs a business card with the agent's and lienholder's names, an authorization on letterhead, or employee ID. If the lienholder is an individual, a copy of their government-issued photo ID.
VTR-266, section by section
Title, VTR-266, or letterhead: which release to use
The form's own instructions list three options: sign the lien release section on the front of the title, fill out this form, or write a release on your letterhead. A letterhead release has to carry the same vehicle information this form asks for. Whichever you pick, it needs an original signature and a date. If the lien is on an electronic title (e-Title), there's no paper to sign: TxDMV says the lienholder coordinates with TxDMV to remove the lien from its records, and when TxDMV gets the electronic release, the record converts to a paper title mailed to the recorded owner or a third party.
| Field | Who fills it |
|---|---|
Lien release section on the front of the title Paper title only. | You (dealer) |
VTR-266 or a letterhead release Original signature and a date on either. | You (dealer) |
Electronic release (e-Title) Through TxDMV's electronic lien process, not on paper. | You (dealer) |
Vehicle Information
Seven boxes identify the vehicle: VIN, year, make, body style, model, the title/document number if you know it, and the Texas license plate number if you know it. Copy them from the title so they match what's on file. The last two are optional on the form, but the title number makes the release easy to match to the record.
| Field | Who fills it |
|---|---|
Vehicle Identification Number All 17 characters, from the title. | You (dealer) |
Year, Make, Body Style, Model | You (dealer) |
Title/Document Number (if known) DealerVLO leaves this blank: the deal doesn't record the title number. | You (dealer) |
Texas License Plate Number (if known) | You (dealer) |
Lien Information
The lienholder name is the entity on the title as lienholder. On a BHPH note that's your dealership's legal name, the same name you put on the title application when you sold the car. The Date Lien Satisfied is the date the debt was paid off. The fillable PDF puts address, city, state and ZIP in one box. Authorized Agent Name is the person who will sign the certification. Phone and email let the county or the owner reach you if something doesn't match.
| Field | Who fills it |
|---|---|
Lienholder Name Your dealership's legal name, as on the title. | You (dealer) |
Date Lien Satisfied The day the final payment was received. | You (dealer) |
Address, City, State, ZIP | You (dealer) |
Authorized Agent Name The person signing below. DealerVLO leaves it blank. | You (dealer) |
Phone Number, Email | You (dealer) |
Lienholder Certification: signature, printed name, date
The authorized agent certifies that the lien has been satisfied and is released on the date listed above. Then three lines: Signature of Authorized Agent, Printed Name (Same as Signature), and Date. The form prints the warning that state law makes falsifying information a third degree felony. Sign in ink. TxDMV won't take a copy, so the owner needs the original.
| Field | Who fills it |
|---|---|
Signature of Authorized Agent Original signature. | You (dealer) |
Printed Name (Same as Signature) | You (dealer) |
Date The signing date. Required. | You (dealer) |
The 10-day deadline and handing it over
TxDMV says the lienholder has 10 days after receipt of payment to release the lien. For a retail installment contract, Finance Code § 348.408(b) says the holder must release its lien within a reasonable time, not later than the 10th day after the payoff amount is tendered. Transportation Code § 501.115 says that once the debt is satisfied, the lienholder executes and delivers a discharge of the lien to the owner or the owner's designee, in the manner TxDMV prescribes. In practice: the final payment clears, your agent signs the VTR-266, and the owner gets the original along with the title if you're holding a paper one.
| Field | Who fills it |
|---|---|
Release signed and delivered to the owner Within 10 days of the payoff. | You (dealer) |
Paper title, if you hold it Goes to the owner with the release. | You (dealer) |
What the owner does with it
Transportation Code § 501.115(b) lets the owner submit the discharge and the title to TxDMV for a new title. TxDMV's lien page lists what the owner brings to remove a lien from a paper title: the title, the release of lien from each lienholder named on it, and a completed Form 130-U. TxDMV lists the title fee as $28 or $33 depending on the county, paid at the time of application. Tell your customer that up front so the release doesn't sit in a drawer while the old lien stays on record.
| Field | Who fills it |
|---|---|
Title + VTR-266 + Form 130-U Filed by the owner at the county tax office. | Buyer |
Title fee ($28 or $33 by county) | Buyer |
Trade-ins: the lender releases, you collect it
When you pay off a trade-in's loan, you're the one paying, not the lienholder. The lender signs the release: on the title's release section, on a VTR-266, on its letterhead, or electronically if the trade has an e-Title. Before you title the car or wholesale it, check the release has an original signature and a date and that the VIN matches. A photocopy or an unsigned payoff letter won't clear the lien.
| Field | Who fills it |
|---|---|
Lender's release on the trade Collect it; you don't sign it. | You (dealer) |
Common VTR-266 mistakes that cause rejections
All three release options need an original signature and a date. The owner needs the signed original.
Date Lien Satisfied is the payoff date, not the day you got around to the paperwork. The certification Date is the signing date.
You're certifying the lien has been satisfied. Wait until the last payment is good funds.
TxDMV requires a letterhead release to carry the same information as the form's Vehicle Information section. Copy it from the title.
An electronic lien is released through TxDMV's electronic process. The owner doesn't need to do anything; TxDMV converts the record to a paper title.
TxDMV gives the lienholder 10 days after receipt of payment, and Finance Code § 348.408(b) says no later than the 10th day after the payoff is tendered.
Common questions
What is the Texas VTR-266 form?+
VTR-266 is TxDMV's Prescribed Form for Release of Lien. The lienholder fills in the vehicle, the lienholder's name and address, and the date the lien was satisfied, and an authorized agent signs a certification that the lien is released. The current revision is Rev 10/16. TxDMV also accepts the lien release section on the front of the title or a letterhead release with the same vehicle information.
How long does a lienholder have to release a lien in Texas?+
TxDMV says the lienholder has 10 days after receipt of payment to release the lien. For a retail installment contract, Finance Code § 348.408(b) says the holder must release its lien within a reasonable time, not later than the 10th day after the payoff amount is tendered.
Does a Texas lien release need to be notarized?+
The VTR-266 has no notary section, and its instructions don't call for one. What they do require is an original signature and a date, on whichever release you use: the title, the VTR-266, or a letterhead release. A copy isn't accepted.
Can I just sign the lien release on the Texas title instead?+
Yes. The VTR-266 instructions list the lien release section on the front of the title as one of three options, along with the form itself and a letterhead release. The form is handy when the title isn't in your hands or the owner is getting a certified copy of title.
What does the buyer do with the lien release?+
For a paper title, TxDMV lists the title, the release of lien from each lienholder on it, and a completed Form 130-U, filed at the county tax office. TxDMV lists the title fee as $28 or $33 depending on the county. For an e-Title, the lienholder releases electronically and TxDMV mails a paper title; the owner doesn't need to do anything.
Who releases the lien when I pay off a customer's trade-in?+
The lender does. Paying off the loan doesn't make you the lienholder. Collect the lender's release (title release section, VTR-266, letterhead, or an electronic release on an e-Title) with an original signature and a date before you retitle or wholesale the car.
Where do I download the VTR-266?+
TxDMV publishes the fillable PDF at txdmv.gov/sites/default/files/form_files/VTR-266.pdf. The download link is at the top of this page.
Is there software that fills out the VTR-266 automatically?+
Yes. Dealer management software like DealerVLO fills the official Texas VTR-266 from the deal you already entered: on a buy-here-pay-here note your dealership carries, the BHPH ledger prints it with the VIN, year, make, body style and model, the Texas plate when the deal recorded one, your dealership as lienholder with its address, phone and email, and the Date Lien Satisfied from the last payment on the ledger (blank until the ledger shows the note paid off). The title number, authorized agent name, and the certification's signature, printed name and date stay blank for your signer. Signatures stay blank for ink. It's $29/month flat with a 14-day free trial, and the same deal also generates your federal documents (Bill of Sale, FTC Buyers Guide) and your state title paperwork.
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Stop filling out the VTR-266 by hand.
DealerVLO fills the official TX VTR-266 straight from your deal jacket: on a buy-here-pay-here note your dealership carries, the BHPH ledger prints it with the VIN, year, make, body style and model, the Texas plate when the deal recorded one, your dealership as lienholder with its address, phone and email, and the Date Lien Satisfied from the last payment on the ledger (blank until the ledger shows the note paid off). The title number, authorized agent name, and the certification's signature, printed name and date stay blank for your signer. $29/month. 14-day free trial, cancel any time.
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