Getting a new title for most vehicles is as easy as reassigning the vehicle's title to a new owner by filling out the information on the back and presenting it to the DMV (department of motor vehicles). If the original title to the vehicle is lost or destroyed, bonded titles are often the easiest way to sell or transfer ownership of the vehicle legally.
The vehicle title issued when a car or truck is new follows the vehicle through its lifetime and is reassigned to a new owner each time the vehicle is sold. If something happens along the way and the title is lost or destroyed, replacing it can be challenging, so if you decide to sell the vehicle, you may find it hard to do without a title.
In some cases, you may be able to order a duplicate title from the state, but if the vehicle has changed hands without the title in the past, the information will often be out of date, so proving you own the car will usually require you to get a bonded title to go with the rest of the documentation at the time of the sale. Bonded titles guarantee that the vehicle is legally transferred from you to another party. If someone comes along later with proof that they own the car, it reimburses the person you sold the vehicle to for the loss.
In many states, bonded titles are required for any vehicle that does not have a current title to ensure you are the vehicle owner and the buyer does not get stuck with the loss should a titleholder place a claim on the vehicle later.
Bonded Title Costs
The surety bond used to create bonded titles is issued by a bonding company, and the applicant typically covers the cost of the bond. The applicant could be the person selling the vehicle, buying the car, or a dealer or vendor that currently has possession of the car.
Bonded titles take the vehicle's value into effect and then set the fees according to that value. This is often very inexpensive for older cars with lost titles. Still, if the vehicle is newer and has a higher value, you can expect to pay higher fees to the surety company for the bonded title.
The best way to determine the cost of the surety is to call the bonding company and ask about the fees for bonded titles, and they can go over the values and cost with you. Once you send them the necessary information, bonded titles can be issued quickly, allowing you to sell the car right away. However, bonded titles should be used as a last option, and if there is a way to replace the lost title with a duplicate, it is often easier for the new owner if they decide to sell the vehicle later.
For more information on bonded titles, contact a professional near you.Share