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What is a bonded title. The bonded titling process consists of a series of situations surrounding an ownership titling event, most commonly for a motor vehicle, in which some part of the documentation required for ownership is missing or unavailable and the previous owner(s) cannot be located in order to obtain the required documentation. If you do not have acceptable evidence of ownership for your
vehicle, you have the option of applying for a bonded title.
How Do I Qualify for a Bonded Title?
In order to qualify, you must be a Texas resident or military
personnel stationed in Texas; or have a vehicle that was last titled
in Texas. The vehicle must be in your possession and cannot be
considered abandoned, junked, stolen, or in any other pending
lawsuits. Although not required to be operational, it must be a
complete vehicle including a frame, body and motor or frame and
motor if a motorcycle.
The term "Bonded Title" is commonly used when an individual or firm
has obtained a Certificate of Title Surety Bond in order to register a
motor vehicle. It is also referred to commonly as a Texas Bonded Vehicle Title.
What Is a Bonded Title - Basic Facts:
The Transportation Code §501.053
allows for a bond in the amount of one and one-half times the value of
the vehicle. It is effective for a period of three years and 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.
How Do I Obtain a Bonded Title?
Step 1: Determine your eligibility
In order to qualify, you must be a Texas resident or military
personnel stationed in Texas; or have a vehicle that was last titled
in Texas. The vehicle must be in your possession and cannot be
considered abandoned, junked, stolen, or in any other pending
lawsuits. Although not required to be operational, it must be a
complete vehicle including a frame, body and motor or frame and
motor if a motorcycle. To determine your eligibility for the bonded title procedure and
the value of the bond, take or mail the following documents to your
Vehicle Titles and Registration (VTR) Division Regional Office:
If your documents are approved, the amount of the bond equal to
1½ times the value of the vehicle will be determined by the Regional
Office using a national reference guide. If you disagree with the
amount you may furnish an appraisal by a licensed motor vehicle
dealer or insurance appraiser. Once the value of the vehicle is
determined the VTR Regional Office will give you a letter within 24
hours showing the amount the bond needs to be purchased in.
Step 2: Purchase a surety bond
Take the letter and other documents given to you by the VTR
Regional Office to an auto insurance agency or any agency that sells
vehicle Surety Bonds. You have one year from the date of the letter to purchase a
Surety Bond in the amount shown on the letter, otherwise a new
letter and bond would be required.
Step 3: Apply for a bonded title
Within 30 days from purchasing the surety bond, take the original
letter given to you by the Regional Office and the documents listed
above, to your
county
tax office, in addition to:
If the vehicle is from out of state, you will also need to
provide a Vehicle Identification Certificate (Form VI-30), completed
by a
Safety Inspection Station. If the vehicle is from out of
country, you will need a Customs Document (HS 7). If the vehicle is a truck or
commercial vehicle you may also need a weight certificate.
Buyer Beware
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.
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