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

Once a loan is paid off, the lienholder releases the lien and Iowa issues a clear title to the owner.

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

A bonded title allows someone to establish ownership of a vehicle when standard title documents cannot be obtained.

Question 3

Which Iowa vehicles are required to have license plates displayed?

Accepted Answer

Both front and rear on most vehicles

Answer

Most Iowa vehicles are required to display license plates on both the front and rear of the vehicle.

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

Iowa dealers must provide the title or MCO to the buyer within 30 days of the vehicle sale.

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

ELT means the lender's lien is held electronically in the Iowa DOT's system instead of on a paper title.

(IA DMV) Iowa Department of Motor Vehicle Practice Test