Blog article
See all stories »

4 Simple Reasons Why You Might Need a Bonded Title

Bonded title is a form of surety, which can be used if the standard car title in your name is missing. Many used car sellers don’t want to sign over the motor vehicle title to buyer’s name. In this case, a bonded title is required for wide range of transactions and legal processes.

If you’ve purchased a used car and the seller was too lazy to sign over the title to your name, you can simply obtain the Certificate of Title Surety (bonded title) in a nearby surety agency. These titles are issued for various types of motor vehicles, including: cars, buses, trucks, travel trailers, motor bikes and campers.

Since it’s not possible to acquire a bonded title for a vehicle that you’ve found abandoned, in order to get this document, you need to prove that the vehicle has been sold or given to you. You also need to prove that you’ve attempted to obtain a regular car title beforehand, while some local jurisdictions also require you to pay taxes that are in the excess of vehicle’s current value.

Most people obtain this document when they want to insure, register or sell their vehicle. Since this process requires you to pay taxes and the bond itself, it’s always advisable to acquire a bonded title before you enter these processes.

These are some of the most common instances when you should obtain a bonded title:

1. You bought a vehicle without receiving a title or a bill of sale

Many people sell or donate their cars without signing any type of contract. For example, if you won a car in Fast and Furious-styled race, you definitely won’t ask your opponent to sign over the title to your name or to sign a gift contract.

Bonded title regulations differ from one state to another. For example, for Texas bonded title, you need to file:

  • Statement of fact for bonded title;

  • Statement of physical inspection;

  • Copy of your photo ID;

  • Supporting evidence for your title claim;

If you don’t have a title, a bill of sale or a gift contract, it might be a bit difficult to prove that you’re the rightful owner of the vehicle. In this case you can also use sale receipt, cancelled check or a notarized statement that explains how you’ve gotten your vehicle.

2. You bought a vehicle with a bill of sale

In this case you will also need a bonded title, in order to sign over the title rights. You should keep your bill of sale and use it as a supporting evidence for your title claim.

3. You bought a vehicle and received improperly signed title

Even if the vehicle seller signed over the title, you need to check its validity. If your vehicle title is improperly signed, you will also need to get a bonded title. Improperly signed titles include those that are listed under the wrong name. Since these titles are useless, in this case you should use the bill of sale, receipt, canceled check or a notarized statement as a proof that you’ve bought the vehicle.

4. You bought a vehicle and lost the title

If you lost the title document before applying the title in your name, you should use the bill of sale, receipt or a notarized statement for getting a bonded title. On the other hand, if you transferred the title in your name before losing it, you don’t need to get a bonded title, because you can simply apply for the duplicate title certificate at your local DMV.

American car ownership laws are very flexible, and bonded title is one of the documents that makes car sales and donations much less complicated. This is great, because elaborate documentation that follows European vehicle sales, drastically increases the price of used cars. In United States you can sign a simple notarized statement or bill of receipt and start using your new used car immediately.

 

14227

Comments: (0)