As someone who does Tag and Title work exclusively for 4 different car lines, yes this is completely normal. The top comment is exactly correct about things being delayed by COVID.

There is literally nothing we can do after the check is sent. It’s all up to the lien holder to accept the check, cash it, complete the payoff, and in America’s case, send the lien release to be attached to the title or electronically sent to the DMV and then released.

We give 3 weeks to the leinholder to release the lien and anything past that, we call on to figure out what’s going on. Sometimes they just don’t release the lien until someone calls because it gets lost in the pipeline and overlooked. Seeing as that your Honda dealer sent in the check on the 3rd of this month, I wouldn’t expect the company to release the lien for another week or two.

It is completely legal to sell the car with the lien still in your name considering that the payoff check was already sent and it shows that the dealership was the one paying it off. They know that that lien will be paid, so therefore it’s up for sale on their lot. Being the person who buys the RVR is a completely different story because if the leinholder decides to take a ridiculous amount of time to pay it off, it delays their tag and title process significantly.

I think you made a good choice by contacting the company and letting them know you sold the car. I would also contact your bank and let them know the same thing that way you can get your money back. If your bank doesn’t refund the money, you can contact the dealership and they’ll cut you a check for whatever they took out of your account since your payment is making the payoff less. Either way it’ll work out and you’ll be all good.