Things To Know About Certification Of Title Bond
A Certification of Title Bond, also known as a bonded title, is a type of surety bond often required when the title to a vehicle is missing, damaged, or cannot be transferred through standard processes. All About Insurance provides certification of title bond in Houston, Humble, TX, Spring, TX, The Woodlands, Conroe and surrounding areas.
This is what you need to know:
What is a Title Bond?
A title bond guarantees that the individual applying for a vehicle title is the rightful owner. It protects the Department of Motor Vehicles (DMV) and any third party from financial losses in case of a fraudulent claim.
When is it Needed?
Lost or Stolen Title: If the original title is misplaced or stolen.
Unclear Ownership: When ownership of the vehicle cannot be verified through standard documentation.
Purchased Without a Title: If you bought a vehicle from someone who didn’t provide a title.
How Does it Work?
Application: Submit an application to the DMV. They may require proof of ownership (e.g., a bill of sale).
Bond Amount: The DMV will determine the bond amount, often based on the vehicle’s value. Typically, it’s 1.5 to 2 times the appraised value.
Obtain the Bond: Contact a surety bond company to purchase the bond. Costs range from 1-15% of the bond amount, depending on your credit.
File the Bond: Provide the bond to the DMV to proceed with obtaining a new title.
Key Features
Duration: Most title bonds last 3-5 years to allow claims by rightful owners.
Claims: If a valid claim arises, the surety pays the claimant, and the bondholder must reimburse the surety.
Non-Transferable: The bond is tied to the specific vehicle and cannot be transferred.
Benefits
Allows you to legally register and sell the vehicle.
Protects all parties involved in case of disputes.
Important Note
Regulations vary by state, so check local DMV requirements for specific instructions on obtaining and filing a title bond. Please reach out with any questions you might have, and we will be happy to help.
