NY · STATE PROCESS

New York: from final payment to clear title.

The New York guide below works one post-payoff title problem back through the state's documents and release process.

DMV SNAPSHOT
Title system
New York titles can continue to show a recorded lien even after the loan has been paid. The lien-release document is therefore important evidence that the security interest was satisfied.
After payoff
NY DMV says the lienholder must promptly send proof of lien satisfaction, usually a Notice of Recorded Lien (MV-901) endorsed by the lender or a qualifying lender letter.
Lien release
You can keep the original lien release with the existing title and provide both when you sell the vehicle, or you can request a new clear title from the DMV Title Bureau.
Owner action
Keep the original release. If you want a lien-free title certificate before selling, NY DMV says you may mail the original lien release, original title certificate, and the required fee to the Title Bureau.
Timing
NY DMV uses the word 'promptly' for the lienholder's release obligation on its title guidance page; mailing and clear-title processing times are separate.
New York DMV — Certificate of Title / remove a lien

New York guides