IA DMV Vehicle Registration and Title 4

Question 1

In Iowa, how must a lien on a vehicle title be handled when the loan is paid off?

Accepted Answer

The lienholder must release the lien, and a clear title is issued

Answer

The owner must apply for a new title at the DMV

Answer

The lien automatically drops off after 7 years

Answer

The owner files a lien release with the county sheriff

Question 2

What is the purpose of a 'bonded title' in Iowa?

Accepted Answer

To provide proof of ownership when normal title documentation is missing

Answer

To add a lienholder to an existing title

Answer

To register a vehicle imported from another country

Answer

To transfer a title between family members

Question 3

Which Iowa vehicles are required to have license plates displayed?

Accepted Answer

Both front and rear on most vehicles

Answer

Rear plate only on all vehicles

Answer

Front plate only on passenger cars

Answer

Only rear plate on trucks

Question 4

A dealer in Iowa must provide a title or Manufacturer's Certificate of Origin (MCO) to the buyer within how many days?

Accepted Answer

30 days

Answer

10 days

Answer

60 days

Answer

7 days

Question 5

What does it mean when an Iowa title shows 'Electronic Lien' or 'ELT'?

Accepted Answer

The lienholder's interest is recorded electronically rather than on a paper title

Answer

The vehicle has an electronic tracking device installed

Answer

The title was processed online by the owner

Answer

The registration was renewed via the internet

Question 6

When transferring a vehicle title between immediate family members in Iowa, what special rule may apply?

Accepted Answer

A reduced or waived gift/transfer tax may apply

Answer

No title transfer is needed between family members

Answer

Family members have 90 days instead of 30 to complete the transfer

Answer

Family transfers require a notarized affidavit

Question 7

What happens if you fail to renew your Iowa vehicle registration and it expires?

Accepted Answer

You must pay a penalty fee in addition to the renewal fee

Answer

Your vehicle is automatically impounded after 30 days

Answer

Your driver's license is suspended

Answer

You must re-register the vehicle as if it were new