Certificate of Title Bond

Although it is not generally known, a bonded title is actually an acceptable alternative to the standard vehicle title normally required to prove ownership of some kind of motor vehicle. Sometimes referred to as a certificate of title surety, they are considered proof of ownership by the Department of Motor Vehicles, as well as by insurance companies when purchasing insurance becomes necessary. In most cases, bonded titles are issued for automobiles, although they can also be used to prove ownership of recreational vehicles, motorcycles, buses, and trucks.  Vehicle title bonds are also called lost title bonds, defective title bonds, and certificate of title bonds.

There are several reasons why you might want to obtain a certificate of vehicle title bond, including the purchase of insurance or to register the vehicle with the DMV, as mentioned above. It can also be used to protect you against any claim of misrepresentation if you decide to sell your vehicle. Since the government prohibits fraudulent or negligent misrepresentation about a vehicle's condition or ownership, bonded vehicle titles cover your liability when selling.  Bonded vehicle titles can also be used as legal proof of ownership in any kind of legal dispute where ownership comes into question.

The single most common need for bonded vehicle titles is by a person who, for whatever reason, cannot obtain the original vehicle title. It may have been lost, or the original owners may be unreachable, or the title may have been destroyed. Proof of vehicle ownership is always required by all states in the country.

Once the bond has been obtained, however, it is not considered irrefutable proof of ownership immediately. For a period of three years, it could be overturned if evidence arises that points to another legal owner. After that three-year period, bonded vehicle titles can be formally converted into a standard vehicle title, assuming that no contrary ownership information has surfaced.

There is a wide range of costs among states for the obtaining of a bond title, and even within states, the companies that will assist you in your efforts to obtain a bonding title can charge very different amounts. The reason for this is that it is sometimes necessary to conduct fairly exhaustive research into finding the original owners and documents, and this usually takes a significant amount of time.

The filing fee for a lost title is generally somewhere between $15 and $25, and this will be in addition to the fee charged by a surety company that you might engage in the process. Costs to retain a surety company can vary between $100 and $300 or more, depending on the degree of difficulty in tracking down vehicle owners and information.