What Is a Bonded Title in Texas? (And How to Get One Easy)

Ever wondered what happens when you don’t have a title for your vehicle?

Understanding bonded titles is crucial for vehicle ownership, ensuring you can legally register and drive your car. This process provides peace of mind and legal security, especially in cases where the original title is lost or unavailable.

What Is a Bonded Title in Texas?

A Texas bonded title is a certificate issued by the state. It proves vehicle ownership when the original title is lost, damaged, or unavailable. This surety bond protects against potential claims on the vehicle.

Why Do You Need a Bonded Title in Texas?

Common reasons for needing a bonded title include losing the original title, recovering a stolen vehicle, or dealing with incomplete transactions.

If you purchase a car without a proper title, a bonded title can help establish legal ownership. However, this may not always be guaranteed. It provides legal protection to the previous owner and/or lienholder by ensuring financial compensation for a valid claim.

What Can a Bonded Title Be Used For?

Use a bonded title to register and legally operate your vehicle, sell the vehicle, or transfer ownership.

However, it has limitations. A bonded title doesn’t guarantee a clear title history and may be challenged by previous owners. It also requires a surety bond, which remains in effect for three years to protect against any future claims.

How Does a Bonded Title Work in Texas?

A bonded title in Texas is a legal document proving vehicle ownership when the original title is missing or unclear.

Here’s how it works:

1. Purchase a Surety Bond: Get a bond worth 1.5 times the vehicle’s value. This bond protects any previous owner or lienholder with a valid claim.
2. Submit Application: Complete the necessary forms. Then, submit them to the Texas DMV (TxDMV) along with the bond.
3. DMV Review: The TxDMV reviews your application and bond. If approved, they issue a bonded title.
4. Valid for 3 Years: The bonded title is valid for three years. It converts to a standard title if no claims are made against it during this time.
5. Use as Regular Title: You can register, sell, or transfer the vehicle with a bonded title. It’s like a regular title.

Who is involved:

• Vehicle Owner: The individual seeking to obtain the bonded title.
• Surety Bond Company: Provides the bond that protects against claims.
• Texas DMV: Reviews and approves the bonded title application.
• Previous Owners/Lienholders: Potential claimants protected by the bond.

What Is Needed to Get a Bonded Title in Texas?

To get a bonded title in Texas, you need the following documents and information:

• Proof of Vehicle Ownership: Any documents that show your ownership of the vehicle, such as a bill of sale.
• Vehicle Identification Number (VIN) Verification: 68-A Inspection form completed by a law enforcement officer or certified inspector.(for out of state vehicles only)
• Surety Bond: A bond worth 1.5 times the vehicle’s value.
• Completed Application for a Bonded Title: Form VTR-130-SOF.
• Affidavit of Fact: A detailed explanation of why the title is missing or unavailable.
• Payment for Fees: Any applicable fees required by the TxDMV.

How to Get a Bonded Title in Texas (7 Easy Steps)

Navigating the process of obtaining a bonded title in Texas can be straightforward if you follow these simple steps. Here’s how you can secure your bonded title with ease:

Step 1: Determine if You Need a Bonded Title

Evaluate your situation to confirm that a bonded title is necessary, such as missing or unclear ownership documents.

Step 2: Gather Necessary Documents

Collect all required documents, including proof of ownership, VIN verification, and an affidavit of fact.

Step 3: Get a Vehicle Appraisal (If Required)

If your vehicle’s value isn’t clear, obtain an appraisal to determine its worth.

Step 4: Buy Your Surety Bond

Purchase a surety bond worth 1.5 times the vehicle’s appraised value.

Step 5: Complete the Bonded Title Application

Fill out the bonded title application (Form VTR-130-SOF) accurately and completely.

Step 6: Submit the Application and Bond to the Texas DMV

Submit your completed application, surety bond, and any required fees to the Texas DMV.

Step 7: Receive Your Bonded Title

Once approved, the DMV will issue your bonded title, valid for three years, converting to a standard title if no claims are made.

How Much Is a Bonded Title in Texas?

Obtaining a bonded title in Texas involves several costs. Here’s a breakdown of the expenses you can expect:

• Surety Bond Cost: Bond costs start at $100 and increase depending on the vehicle’s current market value.
• Application Fee: Approximately $15, paid to the TxDMV.
• Vehicle Appraisal Fee: If required, this can cost around $50 to $100.
• Inspection Fee: VIN verification inspection may cost between $20 to $40.
• Additional Administrative Fees: Any other processing fees required by the DMV or local agencies.

These costs may vary, so it’s essential to check with the Texas DMV and your surety bond provider for the most accurate estimates.

How Long Does It Take to Get a Bonded Title in Texas?

The process to obtain a bonded title in Texas typically takes 4 to 6 weeks. Factors such as incomplete paperwork or delays in verification can extend this timeline.

To expedite the process, ensure all documents are accurate, complete, and submitted promptly, and follow up with the Texas DMV regularly.

How Long Does a Bonded Title Last in Texas?

A bonded title in Texas is valid for three years. If no claims are made against the bond during this period, it automatically converts to a regular title.

There are no renewal or extension options; the bonded title either becomes a standard title after three years or remains subject to claims during its validity.

Bonded Title vs. Regular Title: What’s the Difference?

Bonded titles and regular titles serve the same basic purpose of proving vehicle ownership, but they differ in terms of legality, process, and usage.

Here’s a comparison:

Aspect	Bonded Title	Regular Title
Legality	Requires a surety bond; subject to potential claims	Clear ownership; no bond required
Process	Involves obtaining a bond, VIN verification, and DMV approval	Straightforward application through the DMV
Usage	Valid for registration, sale, and transfer, with a bond in place for 3 years	Valid for registration, sale, and transfer
Validity Period	3 years, converting to a regular title if no claims are made	Permanent, unless transferred or canceled
Risk of Claims	Yes, from previous owners or lienholders	No risk of claims

Bonded titles are essential for resolving ownership issues when the original title is lost or unclear, while regular titles are standard for vehicles with clear ownership histories.

Need a Bonded Title? Secure Yours Today!

Getting a bonded title through TMD offers quick approval, competitive rates, and reliable customer service. TMD makes the process simple and stress-free, guiding you every step of the way.

Don’t let missing documents hold you back—contact TMD today to start securing your bonded title and drive with confidence!

Get Your Bonded Title

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Texas Bonded Title FAQs

Answers to common questions about bonded titles.

Is a Bonded Title Bad?

A bonded title is not inherently bad; it’s a legal solution for proving ownership when the original title is lost or unclear. While it may signal previous title issues, it provides legal protection and ensures vehicle registration.

Bonded titles offer a practical way to resolve ownership disputes and obtain necessary documentation.

Can You Sell a Car with a Bonded Title?

Yes, you can sell a car with a bonded title. The process is legal and involves disclosing the bonded title status to the buyer.

The seller should be aware of potential claims during the bond’s validity period, but the sale itself is straightforward with proper documentation.

Can You Buy a Car with a Bonded Title?

When buying a car with a bonded title, verify the title status and ensure there are no outstanding claims.

The transaction is legal. Conduct thorough research and consider consulting with a professional for a smooth purchase.

Is a Bonded Title a Clean Title in Texas?

A bonded title is not considered a clean title. A clean title indicates clear ownership without disputes or claims.

A bonded title is issued to resolve lost or unclear titles like an abandoned title. It includes a surety bond to protect against claims, but after three years without issues, it can convert to a regular title.

Where to Get a Bonded Title in Texas?

For a hassle-free experience, get your bonded title through TMD. With quick approval, competitive rates, and exceptional customer service, we ensures a smooth process from start to finish.

Contact TMD today to secure your bonded title and drive with peace of mind.