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If your question relates to an auto loan, as soon as you pay off the loan, the lender will forward you the original title and the lien holder box (indicating who has a lien on the vehicle title) will be signed (indicating it has been satisfied and released).

Once you have the vehicle title properly signed, you can freely trade or sell the vehicle.

If you sell the vehicle as part of a trade with a dealer they are willing to take the vehicle and upon payoff, they will get the title directly from the lender. (You'll be signing a release and authorization as part of the transaction.)

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