OMVIC Practice Test 2026 - Free OMVIC Practice Questions and Study Guide

Question: 1 / 400

True or False: If a dealer pays out a lien on a customer's trade-in, he or she must give the customer a copy of the release letter from the financial institution.

False

True

When a dealer pays out a lien on a customer's trade-in, it is essential for transparency and legal compliance that the customer receives a copy of the release letter from the financial institution. This document serves as proof that the lien has been satisfied and that the customer is now the rightful owner of the vehicle without any encumbrances. Providing the release letter protects the interests of the customer and ensures that they have the necessary documentation if any questions arise regarding the ownership status of the vehicle in the future. It is a best practice that fosters trust between the dealer and the customer, as well as ensures that the transaction complies with industry regulations.

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