Bonded Title
"Bonded Title" is a term commonly used when an individual or firm
has obtained a Certificate of Title Surety Bond in order to register a
motor vehicle. The Transportation Code §501.053
allows for a bond in the amount of one and one-half times the value of
the vehicle, that is effective for a period of three years, this
accompanies the documents presented to the County Tax
Assessor-Collector, to be filed with the Texas Department of
Transportation (TxDOT) to obtain a motor vehicle title when the
previous owner of the motor vehicle does not have possession of the
original title.
Although there are valid reasons why a title may not be readily
available, you are encouraged to use caution and review the above
material if you are considering purchasing a vehicle to which the owner
is not in possession of the title at the time you are negotiating the
purchase.