Non-title-holding States

A non-title-holding state is a state where the vehicle owner (seller) keeps the physical paper title, even if there is an active lien on the vehicle.

In these states:

• The lien is recorded on the title
• The seller physically holds the title
• The lender does not keep the paper title
• When the loan is paid off, the lender issues a lien release, and the title can be cleared

This doesn't mean the title is always a physical title, these states can also be holding the title as an ELT.

Non-Title-Holding States

The following states generally allow the seller to hold the physical title even when a lien is active:

• Kentucky (KY)
• Maryland (MD)
• Michigan (MI)
• Minnesota (MN)
• Missouri (MO)
• Montana (MT)
• New York (NY)
• Wyoming (WY)
• Wisconsin (WI) is sometimes listed as non-title-holding, but practices can vary depending on lien type and timing. It’s often treated as a “depends” state.