- August 24, 2022
- Posted By:hmvreeland
A bonded title or a Certificate of Title Surety Bond is a document that establishes vehicle ownership. It includes a surety bond in Los Angeles that guarantees the owner’s legitimate ownership of the vehicle. A bonded title is usually used when the standard car title in the owner’s name is missing.
Why Do You Need a Bonded Tile?
A bonded title allows the owner to sell the vehicle and obtain insurance for it legally. If a car owner does not have their vehicle’s certificate of title, they will need a bonded title to register the vehicle with their local DMV.
A bonded title is not an automobile warranty. It does not make any claims regarding the condition of the vehicle, and simply provides proof of ownership.
How to Get a Title Bond?
Since the DMV does not issue bonds, you will need to contact a surety company to buy a title bond.
Many surety companies run a credit check on potential clients before issuing a surety bond. Once the surety company determines your eligibility, you are required to pay a small percentage of the total bond amount. After the bonding company issues the bond, you can take the document to your local DMV to prove your ownership.
When Does a Car Owner Need a Bonded Title?
Here are some circumstances when you might need a bonded title:
- You did not receive the car title: If you purchased a car and did not receive title documents, you need a bonded title to prove that you are the legal owner of the vehicle. Car owners who do not have title documents, a bill of sale or a gift contract are required to submit sale receipt, canceled check or a notarized statement to explain how they got the vehicle.
- You bought a vehicle and only received the bill of sale: If you purchased a car and only received the bill of sale, you may need a bonded title to prove legal ownership
- The car title was improperly assigned: If you bought a vehicle and the title is improperly assigned; for example, the owner’s or buyer’s name in the document is incorrect, you may be required to get a title bond. You may also need a bonded title if the seller’s name is not mentioned in the car title or the title documents are damaged or unreadable