What is a Bonded Title?
- Written By: Malcolm Tatum
- Edited By: Bronwyn Harris
-
Copyright Protected:
2003-2013 Conjecture Corporation
A bonded title is another name for a document known as a Certificate of Title Surety. Utilized in lieu of a standard car title, obtaining the bond makes it possible to move forward with registering the motor vehicle with the local Department of Motor Vehicles or DMV. The document also serves as proof of ownership, making it possible to purchase insurance for the vehicle.
In many locations, it is possible to obtain a bonded title for a number of different types of motor vehicles. Along with cars, trucks, buses, and travel trailers are also eligible. It is not unusual for a jurisdiction to also approve a title bond for motorcycles and campers.
While each jurisdiction sets their own criteria that must be met in order to qualify for a bonded title, there are a few requirements that appear to be common to most locations. First, an attempt to locate a legitimate car title must be made before application for the bond is made. Second, the vehicle must be bought or received as a gift; it is usually not possible to obtain a bonded title on any vehicle that is found abandoned. Last, the local jurisdiction is likely to require the payment of taxes that are in excess of the current value of the vehicle; this is different from the usual practice in many jurisdictions that based the applicable taxes on the current assessed value of the vehicle.
It is important to note that while a bonded title does help to establish car ownership, the document is not considered to be on a par with a car title. To a degree, the bond document is a provisional title of ownership that can be challenged for some period of time after the document is issued. In many jurisdictions, it is possible for a bonded title to be challenged for up to three years after the issue date. Detailed information is typically provided when an application for a bonded title is requested from the local tax or DMV office.
After the period specified by the local jurisdiction to challenge a bonded title has passed, it is possible to convert the provisional title into a standard car note or title. Generally, this time period is deemed sufficient for anyone with a legitimate claim to the vehicle to come forward and take legal action to establish that claim. If the claimant is successful, the bonded title usually is declared null and void and the owner recognized by the court can proceed with registering the vehicle in his or her name.
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Discuss this Article
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anon300892
Post 13 |
I bought a Chevy pickup in 2001. When I went to trade it in, the car dealer said the financial company wrote off my car as a loss because I hadn't made payments for years. How do I get a pink slip on the car? |
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anon292250
Post 12 |
I was wondering where are these cars bought from, like what state and the plate number and make of cars? I work at the DMV. I could maybe help you out. |
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evanblake
Post 11 |
I bought a car from a couple a few months ago. I made payments on it (started in April 2012 ended in June 2012). I paid $1800 for the car and it has been paid in full for two months, but they keep giving me the run around when they actually answer the phone. They told me they filed for a lost title, but my lawyer called up to the DMV and found out they never actually filed. But I do know they are the owners of the car and there are no liens on it. So now I need to know what I need to do to get a bonded title, or if that's even what i should do. so I can get tags, inspection and insurance, and the car will be legally mine. I have all the paperwork and receipts. |
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anon278483
Post 10 |
I bought a car from a dealership with a trade in and down payment. The dealership went out of business before I could get the pink slip and they are not answering my phone calls or letters. I have registered the car consistently and have had no major accidents or tickets. Now it's not running and I need a pink slip to sell it. |
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mocha25
Post 8 |
I drove a long way to get this car. do you think that since there is a lien on the car it will get taken from me? What about my money I lost? This guy is avoiding my phone calls. He claims that he had done some work for this lady and she was about to lose her house so she could not pay him for the work he did for her, so she gave him the car. He told me he didn't have any license so he needed to sell this car. What can i do? I need help asap please! |
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mocha25
Post 7 |
I just purchased a vehicle from a gentleman today, but he didn't have a title and the car is in some lady's name. i don't know how to find her and he won't answer his phone. but dmv did tell me her name and said she had a lien on the car and told me to try to get in contact with her but i don't have her number. and i need to know how to go about this? i can't get the car registered or tags changed over from my other car. someone please help me. |
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anon171016
Post 6 |
You should get a bill of sale showing that you did buy this vehicle and go to a local insurance company and get a title bond. Hope this helps. |
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anon161936
Post 5 |
There is a title service in Beaumont, Texas that can help with Bonded Titles for Texas residents. She retired from the DMV and is very helpful. I think it is called Auto Title Recovery. |
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dega2010
Post 3 |
@boathugger: You could also check with an insurance agency. Lost title bonds are usually freely written with your full documentation of the reason of the loss of the title. The purpose of these bonds is to guarantee to the state that you are the legitimate owner and that no one else has a claim to the vehicle. |
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StormyKnight
Post 2 |
@boathugger: You might could go to your local courthouse and talk to someone who does vehicle registration. They would probably know what to tell you to do. |
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BoatHugger
Post 1 |
I purchased a used vehicle from a gentleman and he couldn’t find the title for it. I’m not sure what to do. Do I need to get a lost title bond? |
