Bonded Title

If you need to register, insure, or sell a vehicle, trailer, or camper and cannot get a duplicate title from your DMV, check to see if your DMV allows for bonded titles. To obtain a title bond, the asset in question usually must not be abandoned, stolen, or the subject of any current or pending litigation. Since obtaining a bond requires signing legal documents, the information below will ensure that you understand the basics of bonded titles and the surety bonds behind them.

If your local Department of Motor Vehicles (DMV) has told you that you need to obtain a bonded vehicle title, you may be wondering, “What is a bonded title?”. Simply put, is a certificate of title, issued by a state DMV, that is sworn and guaranteed to be yours. When people ask, “What is a bonded title?”, they may get confusing answers, including that secondary title is the same thing as an indemnity bond or a security bond. It is not.

[Keep reading to learn more about bonded titles. However, if you need a bonding agency now, please contact us.]

What Does a Bonded Title Mean?

Security bonds and lost title bonds are not bonded titles. When someone asks, “What does bonded title mean?”, it means that the certificate of title issued to you by the DMV is backed by the surety bond. You must obtain one, sometimes known as a “Lost Title Bond” before you can obtain a title.

A title backed by a surety bond, means that the company issuing the bond will take on your liability to another party if you fail to fulfill your legal obligations surrounding ownership of the asset.

What is a Bonded Title?

For the purposes of this article, it is a contract established between you, the bond issuing company, and usually, the state DMV, that promises payment by the bonding company should another owner step forward with evidence that the asset is theirs and not yours. The rightful owner can file a claim on the surety, and the bond issuing company will be obliged to pay on the claim if it is found to be valid. You must then repay the company the full value of the bond.

Do I Need a Title Bond?

Before you begin the process of obtaining a second-hand title, you should ensure that you do actually need one. If the title was once in your name and you have simply lost it, you can get a duplicate title at the DMV. Likewise, if you have a Bill of Sale without an accompanying title, and there are no liens on the vehicle, you may be able to apply for a replacement title at the DMV.

You may need a lost title bond if any of the following apply to you:

  • You have lost a title that was not yet in your name;
  • Your title includes missing or incorrect information that you cannot obtain;
  • You received the vehicle as a gift and never received a title; or
  • Your title is severely damaged or illegible.

How to Get a Title Bond

Unfortunately, you can’t go to a car manufacturer or local dealership to get a copy of your title or a bonded title. In some states, you cannot get a title backed by a bond. Check with your state’s DMV before you begin the process. If your state does not issue title bonds, your local DMV can instruct you on how to prove ownership.

Getting a second-hand title is relatively simple. If you have determined that you need your bonded car title and that your DMV does issue bonded titles, you’ll need to fill out the required paperwork at your DMV. They will provide instructions on how to determine the value of your vehicle and what paperwork you’ll need to take with you to the surety company you choose. You will then contact a surety company to purchase your bond.

Most likely, the surety bond company will perform a credit check, but many offer bonds even for problem credit. You will also need to sign the bond contract and pay the bonding company a small percentage of the total bond amount. You will then take proof of your bond, given to you by the company, to the DMV.

States that offer title bonds vary in what they require to obtain one. At a minimum though, in most states, you must apply at local your DMV for the title, file an affidavit of ownership, submit your vehicle for inspection, and pay a small administrative fee (usually around $15.00).

Title Bonds by NFP

If you do not have a title to provide proof of ownership for a vehicle, boat, trailer, or camper, you may need a certificate of title bond. A title bond guarantees the vehicle is yours to the DMV and will pay the value of the vehicle should there be an owner with the proper title. Title bond requirements vary by state.

If you are in need of a certificate of title bond, you are in the right place. NFP can write any bond type in all states. We’ve been doing it since 1984. Let us shop your bond to top-rated companies and save you money, while making sure you are properly bonded. Contact us today.