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Frequently Asked Questions About Bonds

Below are some of our frequently asked questions.  If you have any other questions or concerns, please feel free to contact us , or come and visit us at a location near you.

What is a Surety Bond?

A Surety Bond is an agreement providing for monetary compensation should there be a failure to perform specified acts within a stated period.

What is a title bond?

Also known as a lost title bond, certificate of title bond, insurance bond, auto title surety bond, defective title bond and DMV bond. A title bond is a guarantee to the state that you can legally be the owner of the vehicle. It allows you to forgo the hearing process and obtain your title quicker. The bond protects the PUBLIC, not the person purchasing the bond. If the previous owner files a claim and the surety company finds they should be paid, the surety company will pay the previous owner the amount of the bond and require the purchaser of the bond to pay that amount back.

How do I get a Texas title bond?

1. Go to your regional department of motor vehicles and apply for a bonded title. You will receive a Rejection Letter.
2. Purchase a surety bond from an agent who specializes in title bonds.
3. Go to your local county tax assessor’s office to transfer the title in your name.

How much will the Texas Certificate of Title Bond cost me?

The cost is based off 1 1/2 times what the DMV values the vehicle. The bonds start as low as $100.
Give us a call for a free instant quote.

Is the bond cost a one time fee?


What types of vehicles can Title Bonds be issued for?

  • Cars
  • Trucks
  • Buses
  • Motor Homes
  • Motorcycles
  • Mopeds & Scooters
  • ATV’s
  • Trailers
  • Boats

Can I sell the vehicle with a Bonded Title?

Yes, the bonded title is a negotiable blue Texas Title.

Does a title bond devalue the vehicle?

No, a bonded title does not affect the value.

How long does it stay as a bond title?

3 years

What if there is a lien recorded on the title?

We must first verify that the lien has been satisfied and released before a surety bond can be issued.

Who can apply for a Title Bond?

  • Someone who purchased a vehicle without a title.
  • Someone who purchased a vehicle with a defective title.
  • Previous owner did not transfer title in their name before selling the vehicle.
  • Title is signed incorrectly.
  • Title is illegible.
  • Someone who purchased a vehicle with only a bill of sale/receipt.

What is a dealer bond?

A dealer bond is required by the state in order to make sure the dealership conducts business ethically and follows state regulations.

Why do I need a dealer bond?

It is a state requirement to carry a bond in order to do business as a dealership.

What is the dealer bond for?

The dealer bond or MVD bond protects the state and the public from fraudulent and misrepresentation by the dealership.

How much will the auto dealer bond cost?

The price is credit and experience based. You can expect to pay anywhere from $350-$659 if you qualify with a standard company.

Will the price or premium for my dealer bond always be the same?

No. The renewal could be lowered if you stay in good standing credit wise and there are no claims.

How often do I need to renew my dealer bond?

Every two years. Most companies, like TMD, will send you a renewal notice.

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