Bonded Title vs Abandoned Title: Which One Do You Need?

Understanding the difference between a bonded title and an abandoned title is crucial for anyone dealing with vehicle ownership issues in Texas.

This guide will clarify the distinctions, helping you determine which type of title you need based on your situation, whether reclaiming ownership of a lost title or dealing with an abandoned vehicle.

Do You Need a Texas Bonded Title? 

Bonded Title vs Abandoned Title: What’s the Difference?

Understanding the differences can save you time and legal hassles. Here’s a clear comparison to guide you:

Aspect	Bonded Title	Abandoned Title
Purpose	To prove ownership when the original title is lost	To claim ownership of a vehicle left unattended
Eligibility	Vehicle must not be abandoned, stolen, or in litigation	Vehicle must meet state criteria for being abandoned
Process	Purchase surety bond, submit forms to DMV	Report to authorities, attempt to contact owner, file forms
Timeframe	Varies, usually a few weeks to months	Typically 20 days for notification, plus processing time
Cost	Cost of surety bond and DMV fees	Towing, storage, and DMV fees
Legal Protection	Surety bond protects against ownership disputes	Legal process protects against claims by original owner

 

What is an Abandoned Title?

An abandoned title is a legal document issued for a vehicle found abandoned on private or public property in Texas. It allows the finder to claim ownership or dispose of the vehicle after following specific notification and documentation procedures with the TxDMV.

 

When to Get an Abandoned Title in Texas

• Knowing when to apply for an abandoned title can streamline the process. Here are common scenarios:
• Vehicle left on your property without permission
• Vehicle abandoned on public property past legal timeframe
• Unable to locate the owner
• Unpaid storage or impound fees
• Vehicle lacks a clear title history

How to Get a Title for an Abandoned Vehicle in Texas

Securing a title for an abandoned vehicle involves several legal steps. Here’s a simplified guide:

• Identify the Vehicle:
  Confirm that the vehicle meets the criteria for being considered abandoned (e.g., left unattended for more than 48 hours).
• Report to Authorities:
  Notify local authorities or the TxDMV about the abandoned vehicle.
• Attempt to Contact the Owner:
  Make efforts to locate and inform the owner about the vehicle.
• Wait for Legal Timeframe:
  Allow the legal notification period (usually 20 days) to pass, during which the owner can reclaim the vehicle.
  File for Title: If the vehicle remains unclaimed, file the necessary paperwork with the TxDMV, including the Application for Authority to Dispose of a Motor Vehicle to a Demolisher (Form VTR-71-2) and the $2 application fee.
• Pay Fees:
  Pay any applicable fees for processing the abandoned title.

 

Pros of an Abandoned Vehicle Title

Obtaining an abandoned vehicle title offers several benefits. Here are the key advantages:

Abandoned Title Pros

• Legal Ownership of the Vehicle:
  Gain official ownership, allowing you to use the vehicle legally.
• Ability to Sell or Transfer the Vehicle: With a clear title, you can sell or transfer the vehicle without complications.
  Clear Resolution to Ownership Disputes: Resolve any disputes about the vehicle’s ownership efficiently and legally.

 

What is a Bonded Title?

A bonded title is a legal document issued when the original vehicle title is lost, stolen, or missing. It is backed by a surety bond, providing proof of ownership and protecting the state against potential claims on the vehicle.

 

When to Get a Bonded Title in Texas?

A bonded title can resolve many ownership issues. Here are common reasons for needing one:

• Missing title for a purchased vehicle
• Title lost or destroyed
• Vehicle inherited without a title
• Vehicle purchased at auction without proper paperwork
• Resolve ownership disputes

 

Read More: What is a Bonded Title in Texas?

 

How to Get a Bonded Title in Texas

Securing a bonded title involves a specific process. Follow these steps:

• Determine Eligibility:
  Ensure the vehicle is not abandoned, stolen, or involved in litigation. The vehicle must be in your possession and was last titled in Texas.
• Appraise the Vehicle:
  Determine the vehicle’s value, as the bond amount is typically set at 1.5 times the vehicle’s value.
• Complete Required Forms:
  • Form 130-U (Application for Texas Certificate of Title)
  • Form VTR-130-SOF (Statement of Fact)
  • Form VTR-68-A (if there is no Texas record in the Vehicle & Titling System)
  • Original Vehicle Inspection Report (VIR) if the vehicle is from out-of-state
• Submit the Forms to TxDMV:
  Submit the forms to your Regional Service Center for a Notice of Determination (Form VTR-130-ND) stating the value of the bond to be purchased.
• Purchase a Surety Bond:
  Obtain a bond from a licensed surety company based on the bond value indicated on Form VTR-130-ND.
• Submit Final Documents:
  Submit all documents, including the surety bond, to the county tax office within 30 days from the bond’s issuance date.

 

Pros of a Bonded Title

A bonded title offers numerous benefits for vehicle owners facing title issues. Here are the key advantages:

Title Bond Pros

• Establishes Legal Ownership Quickly:
  Provides a legal solution to prove ownership.
• Allows Vehicle Registration and Use:
  Enables you to register and legally use the vehicle.
• Resolves Title Issues for Missing Documents:
  Addresses and resolves problems caused by lost or missing titles.

 

Need a Bonded Title? Secure Yours with TMD

TMD offers quick and reliable service for securing surety bonds, ensuring a hassle-free process with expert support every step of the way. Get started with TMD to resolve your title issues efficiently.

 

FAQs About Bonded and Abandoned Titles

How Long Before a Car Is Considered Abandoned in Texas?

Yes, you can take ownership of an abandoned vehicle in Texas by following legal procedures, including notifying local authorities, attempting to contact the owner, and applying for an abandoned title through the TxDMV after the legal notification period.

Can I Take Ownership of an Abandoned Vehicle in Texas?

In Texas, a vehicle is generally considered abandoned if it has been left unattended for more than 48 hours on public property, or 24 hours on private property without permission from the property owner.

How to Prove Ownership of a Car Without the Title in Texas?

To prove ownership without a title in Texas, you can obtain a bonded title. This involves providing evidence of ownership, such as a bill of sale, and securing a surety bond. Submit the necessary documents to the TxDMV to complete the process.