VTR-265-M Form: Mechanic’s Lien Foreclosure

VTR-265-M Form – If you’re a Texas mechanic, garage owner, or auto repair shop dealing with unpaid vehicle repairs, the VTR-265-M Form (Mechanic’s Lien Foreclosure) is the official TxDMV document you need to protect your rights and recover costs through legal foreclosure and title transfer.

This comprehensive guide explains everything about the VTR-265-M form, the full mechanic’s lien foreclosure process under Texas Property Code Chapter 70, required timelines, supporting documents, and how to successfully transfer title after a public sale. All information is sourced directly from the Texas Department of Motor Vehicles (TxDMV) as of the latest form revision (01/25).

What Is the VTR-265-M Form?

The VTR-265-M is the official “Mechanic’s Lien Foreclosure” form issued by the Texas Department of Motor Vehicles. It is used exclusively for foreclosing on a possessory mechanic’s lien when a customer fails to pay for vehicle repairs.

Key purposes:

  • Document the unpaid repairs, notifications, and public sale details.
  • Serve as required evidence when the buyer (highest bidder at public sale) applies for a new Texas title.
  • Certify compliance with Texas law so the county tax assessor-collector can issue a clear title.

Download the latest VTR-265-M PDF here:
https://www.txdmv.gov/sites/default/files/form_files/VTR-265-M.pdf

Note: If storage charges are also owed, you must also complete Form VTR-265-S and issue a second notice.

Who Needs to Use the VTR-265-M Form?

  • Independent mechanics and repair shops (non-franchise)
  • Garages holding a valid possessory lien under Texas Property Code §70.001–§70.008
  • Not for franchise dealers (they use VTR-265-FM) or storage facilities (VTR-265-S or VTR-265-VSF)

The form applies to vehicles left for repair on or after September 1, 1999.

Step-by-Step Mechanic’s Lien Foreclosure Process in Texas (Effective 2021 Rules)

Follow these exact steps to ensure your foreclosure is valid and the title transfers cleanly:

  1. Repairs Completed & Work Order Signed
    Obtain a signed work order authorizing the repairs before or at the time the vehicle is left.
  2. Send Foreclosure Notice (Certified Mail)
    Notify the registered owner(s) and all lienholder(s) of record by certified mail, return receipt requested.
    The notice must include:

    • Amount of charges due and demand for payment
    • Physical address where repairs were performed
    • Legal name and Taxpayer/Employer ID of the mechanic/garage
    • Copy of the signed work order
    • Proposed sale date (if vehicle GVWR ≥ 16,000 lbs)

    Alternative: Newspaper publication is allowed only if you cannot obtain owner/lienholder info after a proper certified request to the state of record (see form page 2 for exact conditions).

  3. File with County Tax Assessor-Collector
    Within 30 days after charges accrue (or special rules for heavy vehicles), submit to the county where repairs were made:

    • Copy of the notice sent to owner/lienholder(s)
    • Copy of signed work order
    • $25 administrative fee

    Special rule for heavy vehicles (GVWR 16,000 lbs or more) taken into possession on/after 9/1/2021: File no later than the 30th day before the proposed sale date.

  4. Waiting Period
    The owner or lienholder has until the 31st day after the notice is mailed (or published) to pay in full and reclaim the vehicle.
  5. Public Sale (If Unpaid)
    On or after the 31st day, sell the vehicle at public sale to the highest bidder. Proceeds first pay your charges; any surplus goes to the entitled party.
  6. Complete VTR-265-M & Transfer Title
    The purchaser (or you as seller if buying it back) uses the completed form to apply for Texas title.

How to Fill Out the VTR-265-M Form (Section-by-Section)?

Page 1 – Vehicle & Party Information

  • Vehicle details: VIN, year, make, body style, model, license plate, odometer reading
  • Owner name(s) exactly as shown on title/registration verification
  • Mechanic/garage full legal name and address
  • Customer who requested repairs (name and address)
  • Repair dates, parts/labor charges, storage charges (if any)
  • County where repairs filed, date notice filed with county
  • Date owner/lienholder notified
  • Public sale details (proposed date, actual date, location, sales price, purchaser info)

Odometer Disclosure – Mandatory federal statement (seller and purchaser sign)

Affidavit of Statutory Lienholder – You (mechanic) must sign and have notarized, certifying full compliance with Texas Property Code Chapter 70.

Page 2 – Detailed foreclosure procedures, notification rules, and newspaper publication criteria.

Tip: Always use the most current revision (01/25) from TxDMV.gov. Previous versions remain acceptable, but the latest is recommended.

Required Documents for Title Application After Foreclosure

The buyer must submit to the county tax office:

  • Form 130-U (Application for Texas Title and/or Registration)
  • Completed VTR-265-M
  • Title and Registration Verification (from state of record or acceptable substitute)
  • Proof of notifications (certified mail receipts + any returned unopened letters)
  • Copy of signed work order
  • $25 county filing receipt
  • Proof of liability insurance (if registering the vehicle)
  • For out-of-state vehicles: Texas inspection + weight certificate (if commercial)

Important: The highest bidder at public sale must apply for title (unless a licensed dealer with GDN purchases it).

Common Mistakes to Avoid

  • Missing the 30-day filing deadline with the county
  • Failing to send certified mail to all lienholders of record
  • Not including the signed work order
  • Incomplete odometer disclosure
  • Using the wrong form (VTR-265-M vs. VTR-265-FM for franchise dealers)

Frequently Asked Questions (FAQs)

How long after repairs can I start the process?
Any time after charges accrue, but you must file the notice copy with the county within 30 days.

Can I include storage fees?
Yes, but complete VTR-265-S and send a second storage notice.

What if the vehicle is over 16,000 lbs GVWR?
Additional timing rules apply for filing and proposed sale date disclosure.

Is the $25 fee per vehicle?
Yes, paid to the county tax assessor-collector where repairs occurred.

Where do I find the official foreclosure charts?
TxDMV publishes free charts:
• Mechanic’s Lien Procedures Effective 9/1/2021
Available on the TxDMV website under Publications.

Download Official Resources

  • VTR-265-M Mechanic’s Lien Foreclosure → Direct PDF
  • Full list of TxDMV forms → txdmv.gov/forms
  • Motor Vehicle Title Manual (Chapter 23 – Liens) → Search on TxDMV.gov

Pro Tip: Always verify the latest form version and county-specific requirements on TxDMV.gov or contact your local county tax assessor-collector office before proceeding.

By following this guide and using the official VTR-265-M form, Texas mechanics and repair shops can legally foreclose on unpaid liens, conduct a valid public sale, and ensure clean title transfer to the new owner.

Need help with a specific county or heavy-vehicle case? Consult the TxDMV Motor Vehicle Title Manual or your county tax office for the most current local procedures.

Last updated March 2026 based on official TxDMV publications and form revision 01/25. Always confirm with txdmv.gov for any legislative changes.

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