Yes. Nevada law (NRS 108.297) requires you to account for and pay any surplus from the lien sale. After recovering your documented towing, storage, and auction fees, you must pay excess proceeds first to lienholders, then to the vehicle owner. You cannot simply keep all auction proceeds because you obtained clean title through VP-147. This is one of the most misunderstood aspects of Nevada lien sales.

A shocked Reddit discussion illustrates the confusion: "I always thought the right thing would be for the tow vendor to pay any excess from the sale over their storage costs to the lienholder but they take possession of the whole vehicle?" The answer: Taking possession for lien sale is legal, but keeping surplus proceeds beyond documented costs is illegal conversion of property.

📋 Nevada Surplus Distribution Hierarchy (NRS 108.297):

1. First priority - Your documented costs: Towing charges, storage fees at your posted daily rate, administrative costs for title search and certified mail, auction fees
2. Second priority - Lienholders on DMV record: If auction sale exceeds your costs, remaining funds go to the first lienholder (bank) up to the amount of their lien. If surplus still remains, it goes to second lienholder if applicable
3. Third priority - Original owner: Any remaining surplus after lienholder(s) are paid must be sent to the registered owner at their DMV-registered address via certified mail
4. Unclaimed surplus: If owner doesn't respond to surplus notification within required time (typically 30-60 days), consult legal counsel about escheat to the state

⚠️ Real-World Example of Surplus Calculation:

• Vehicle sells at Copart for $8,500
• Your documented costs: Towing $250, storage 45 days at $30/day = $1,350, auction fees $400 = $2,000 total
• Remaining: $6,500 surplus
• Lienholder on DMV record: Bank with $12,000 lien = Bank gets entire $6,500
• Nothing left for owner (their debt to bank reduced by $6,500)

Different scenario - No lien on record:

• Same $8,500 sale price, same $2,000 costs
• No lienholder on DMV title
• You must send $6,500 to the registered owner with accounting of costs and surplus calculation

💡 Why This Matters for VP-147 Compliance: When you sign your notarized VP-147 affidavit, you're swearing under oath that you followed Nevada's lien sale procedures. Part of those procedures is accounting for surplus. If the owner later discovers you kept $5,000 in surplus that legally belonged to them or their lender, you face: (1) civil lawsuit for conversion, (2) potential perjury charges for false VP-147 affidavit, (3) loss of your tow operator license, (4) criminal charges for theft by conversion.

🏢 Best Practice for Tow Operators: Create a standard surplus calculation worksheet for every lien sale. Document: (1) Auction gross proceeds, (2) Itemized costs (towing, storage with daily rate and number of days, title search, certified mail, auction fees), (3) Net surplus calculation, (4) Lienholder payment if applicable with proof of payment, (5) Owner surplus payment with certified mail proof of delivery. Keep these records for 3-5 years. When we notarize VP-147 forms at Sun City Aliante or other Clark County tow yards, we can review your surplus calculation to ensure it's properly documented before you sign under oath.

Related Questions

• Do I need to notify both the owner AND lienholder for VP-147?
• What if certified mail comes back undeliverable? Can I still do lien sale?
• What are the legal limits on storage fees for Nevada tow operators?

For HOA, gated, and concierge locations we request an authorization note and any community or building rules with your order. We confirm guard hours or concierge contact, schedule a window, and arrive with vendor credentials. If your file requires a posting, we follow posted rules, place a compliant door tag, and capture a clear photo of the posting and entry. Exterior indicators such as vehicles, blinds, and trash service are documented through Occupancy Verification with wide and detail frames from Exterior Only Property Inspection. When allowed, interiors are handled via Interior and Exterior Property Inspection. Coverage includes Anthem Heights, Whitney Ranch, MacDonald Ranch, The Lakes, Peccole Ranch, Lone Mountain, Craig Ranch Park Area, and Tule Springs. Results arrive by secure link with time stamped photos and a simple status line.

For a smooth appointment at Downtown Summerlin, bring these items so we can finalize a compliant consent package:

• Parent identification – government photo ID for the signing parent and, if available, the non-traveling parent.
• Child documents – passport or proof of application, and birth certificate to confirm parentage if names differ.
• Trip details – travel dates, airline and flight numbers, destination address, and emergency contacts.
• Accompanying adult info – full legal name and contact of the traveling parent or guardian.
• Custody paperwork – court orders, parenting agreements, or proof of sole custody if applicable.
• Medical authorization – we can include treatment permission in the letter. Ask about power of attorney for extended trips.
• Destination requirements – some countries request authentication or translation. If needed, add apostille services.
• Airline forms – if your carrier has a template, bring it. We will align the notarial certificate.
• Copies – request certified copies for airline check in, immigration, and parent records.

We prepare a compliant letter with Minor Child Travel Consent Notarization. When the other parent signs separately, use our consent form or a brief affidavit. For related verification tasks, see inspection types.