What Are Bonded Title Services? Who Needs Them?
Bonded title services assist individuals in obtaining a bonded title, which is a type of vehicle title issued when the ownership of a vehicle is unclear or missing. A bonded title, also known as a “certificate of title surety bond,” is used when a person is unable to provide the necessary paperwork to prove ownership of a vehicle, typically because the original title has been lost, stolen, or never transferred properly. All About Insurance provides bonded title in Houston, Conroe, Humble, TX, Spring, TX, The Woodlands and surrounding areas.
How Bonded Title Services Work
Bonded title services help navigate the process of acquiring a bonded title. This involves several steps:
Assessing Ownership: The service helps verify that the person seeking the title has a legitimate claim to the vehicle.
Securing a Surety Bond: The applicant must purchase a surety bond, which is typically valued at 1.5 to 2 times the value of the vehicle. This bond serves as a financial guarantee to protect any previous or future rightful owner who may come forward with a claim to the vehicle.
Filing the Bond with the DMV: After obtaining the bond, the applicant files it with the state’s Department of Motor Vehicles (DMV), along with other required paperwork.
Issuance of Bonded Title: Once everything is processed, the DMV issues a bonded title. The bond remains in effect for a specified period (usually 3 to 5 years), after which the title can be converted to a regular title.
Who Needs Bonded Title Services?
Individuals with Lost or Stolen Titles: If someone has lost the title to their vehicle and cannot obtain a duplicate from the previous owner or state records, they may need a bonded title to prove ownership.
Purchasers of Vehicles with No Title: People who buy a vehicle that comes without a proper title, either through private sales or auctions, may require a bonded title to legally register the vehicle.
Inherited or Gifted Vehicles: Sometimes, individuals inherit or receive vehicles as gifts but cannot access the title. Bonded title services can help secure legal ownership.
These services are especially useful for simplifying what can be a complicated legal and administrative process. If you have any questions, please do not hesitate to call us.