If you own a vehicle, you know it’s an investment—and proving ownership is essential. But what happens if you lose your title or the paperwork is incomplete? In Texas, you can apply for a bonded title, a legal solution that helps establish ownership when the original title is missing or incorrect.
What is a Bonded Title in Texas?
A bonded title is a certificate of title issued by the Texas Department of Motor Vehicles (TxDMV) when ownership cannot be proven through standard documentation. To protect all parties, Texas requires you to purchase a certificate title bond, typically valued at 1.5 times the vehicle’s appraised value, as a financial guarantee that your claim is valid.
This process ensures you can register and insure your vehicle, and the state and any previous owners are protected against fraudulent claims.
When Do You Need a Bonded Title?
You may need a certificate of title bond in Texas if:
- The original title is lost or assigned incorrectly.
- You bought a vehicle without a title.
- Ownership documents are incomplete.
In order to get a certificate of title bond your vehicle must:
- Be in your possession.
- Not be stolen, junked, abandoned, or involved in litigation.
- Have all major components intact (it doesn’t need to run).
How to Get a Bonded Title in Texas
In the State of Texas if you wish to apply for a vehicle title which is lost you have to fulfill one of the following criteria:
- The vehicle you own was most recently titled in Texas.
- You are stationed in Texas as a military person.
- You are a Texas resident.
The vehicle in which you own should also be in your possession at the time of applying for a title and must have all the major components associated with a vehicle.
Certificate of Title Application Process
If you are applying for a vehicle title and you have met one of the outlined criteria mentioned, then the next step is to mail the necessary documents to the nearest Texas Department of Motor Vehicles branch. There is also an administrative fee of $15 which needs to be mailed together with the necessary documents. The documents which need to be mailed to the Texas DMV in order for you to get a vehicle title are:
- A photo ID copy.
- A statement of physical inspection.
- Supporting evidence that can give more firmness to your title claim such as a bill of sale.
- A statement of Fact for title bond.
The Vehicle Identification Number (VIN) must be verified for individuals who have vehicles that are not from the state by a certified safety inspection station in Texas. The report from the certified safety inspection station should be included in the title application.
Important Notes
After you have undertaken the title process and it is approved you will be requested to provide a bond valued at 1.5 times of your car's value. This in simpler terms means that if your car is valued at $14000 the total amount of bond title in Texas will amount to $21000.
After you receive an acceptance letter for your application you are given a period of one year to get your bond. If you do not obtain your bond within this specified time frame you will be required to undergo the whole application process again.
In the case that your car has a lien which is ten years or less in age, your bond company has the responsibility of checking the status of the lien to know whether it is released or satisfied.
Issuance of Bonded Vehicle Title
In a period of 30 days after getting your bonded title, you are required to submit specifics to the nearest county tax office. The specified documents include:
- A photo ID copy.
- Supporting documents to affirm your title claim.
- Physical inspection statement (VTR-270).
- The fact of bonded title Texas statement (VTR-130-SOF).
- Acceptance letter of application.
- A completed application for Texas Certificate of title (PDF) form 130-U.
- Provide proof of insurance for the vehicle.
If your car happens to be from out of the state in addition to these documents, you will be required to submit a report of vehicle inspection. If your car has been imported, you need to include the customs declaration form. If you are applying for a title on a commercial vehicle you must include its weight certificate.
Frequently Asked Questions About Bonded Titles in Texas
What is a bonded title in Texas?
A bonded title is a certificate of title issued by the Texas Department of Motor Vehicles (TxDMV) when you cannot provide standard ownership documents. It requires purchasing a surety bond to guarantee your claim of ownership.
When do I need a bonded title?
You need a bonded title if the original title is lost or incorrectly assigned, you bought a vehicle without a title, or ownership documents are incomplete.
How long does it take to get a bonded title in Texas?
Once you submit all required documents and purchase the bond, you can typically receive your bonded title within 30 days from your county tax office.
Can I sell a car with a bonded title in Texas?
Yes, you can sell a vehicle with a bonded title, but you must disclose that it is bonded. The bond remains in effect for three years, even if ownership changes.
Does a bonded title mean the car is salvage or rebuilt?
No. A bonded title simply means ownership could not be verified through normal channels. It does not indicate the vehicle is salvage or rebuilt.
NFP For All Your Bonding Needs
Need a Texas title bond or any other surety bond? NFP is licensed nationwide and ready to help. Contact us today for expert guidance and fast service.
