How to Get a Bonded Title in Georgia?

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Georgia bonded titles. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

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What Is a Bonded Title?

Bonded titles provide a way for Georgia residents who don’t have a standard title or other absolute proof of ownership to register a vehicle in their own name or transfer ownership to another party. Bonded titles look just like regular titles except that it is marked with the word BONDED.

Who Needs Them?

There are many reasons and explanations for needing a bonded title. Most commonly it’s because the vehicle was acquired from a private seller who did not provide the buyer with a title at all, or furnished a title that is invalid (e.g., forged, improperly assigned, damaged or illegible). Or maybe someone lost the vehicle’s title or someone stole it after the buyer received it from the seller, but before the buyer could get it properly registered. 

Needing a bonded title doesn’t mean that getting one is easy or guaranteed. You aren’t even eligible for one if the vehicle was abandoned on your property, or was from a model year before 1985.

What Are the Steps in the Bonded Titling Process?

Georgia bonded titles are issued by the Georgia Department of Revenue. You can start the application process online, but you must complete the process at the local tag office. The bonded title application process also involves:

  • Having the vehicle inspected by a Georgia law enforcement officer
  • Obtaining a title report from the National Motor Vehicle Title Information System
  • Purchasing a four-year Georgia title bond in an amount that is twice the vehicle’s retail value as established by DOR, with a minimum bond amount of $5,000

Why is a Title Bond Required?

When you purchase a Georgia title bond you are guaranteeing that you are the rightful owner of a vehicle for which you lack a valid title. If it turns out during the four-year bond term that you’re not the vehicle’s true owner, DOR cannot be held liable for any damages that occurred because you were issued a bonded title. 

You, however, are legally obligated to compensate the vehicle’s actual owner and any other party financially harmed by your actions, such as a person to whom you sold a car you didn’t truly own. If the bond expires without any claims, your bonded title can be exchanged for a conventional title.

How Do They Work?

As the party requiring the bond, DOR is referred to in the surety bond agreement as the “obligee.” As the party required to purchase the bond and legally obligated to pay any valid claims, the person seeking a bonded title is known as the “principal.” The third party to the agreement is the bond’s guarantor, called the “surety.”

It’s up to the surety to determine the legitimacy of a claim and approve it for payment. Typically, the surety also will go ahead and pay it, even though that’s the principal’s legal responsibility. But the principal must then repay the surety. If repayment is not forthcoming, the surety can take legal action against the surety to obtain it.

What Do They Cost?

How the cost of a Georgia title bond is determined depends on the bond amount. There are three different payment methods:

  • A flat cost of $125 or less for bonds with a coverage amount of $5,000 to $6,500
  • A small fixed percentage (1.5%) of bonds with a coverage amount higher than $5,000, up to $25,000
  • A premium based on underwriting for bonds with a coverage amount higher than $25,000

For bonds that are subject to underwriting, the surety will set a premium rate that reflects the risk that is inherent in paying claims on behalf of the principal and waiting to be reimbursed.

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Georgia bonded titles. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

CONTACT US FOR A

FREE BONDED TITLE QUOTE

What Are Bonded Titles?

Bonded titles provide a way for Georgia residents who don’t have a standard title or other absolute proof of ownership to register a vehicle in their own name or transfer ownership to another party. Bonded titles look just like regular titles except that it is marked with the word BONDED.

There are many reasons and explanations for needing a bonded title. Most commonly it’s because the vehicle was acquired from a private seller who did not provide the buyer with a title at all, or furnished a title that is invalid (e.g., forged, improperly assigned, damaged or illegible). Or maybe someone lost the vehicle’s title or someone stole it after the buyer received it from the seller, but before the buyer could get it properly registered. 

Needing a bonded title doesn’t mean that getting one is easy or guaranteed. You aren’t even eligible for one if the vehicle was abandoned on your property, or was from a model year before 1985.

Georgia bonded titles are issued by the Georgia Department of Revenue. You can start the application process online, but you must complete the process at the local tag office. The bonded title application process also involves:

  • Having the vehicle inspected by a Georgia law enforcement officer
  • Obtaining a title report from the National Motor Vehicle Title Information System
  • Purchasing a four-year Georgia title bond in an amount that is twice the vehicle’s retail value as established by DOR, with a minimum bond amount of $5,000

When you purchase a Georgia title bond you are guaranteeing that you are the rightful owner of a vehicle for which you lack a valid title. If it turns out during the four-year bond term that you’re not the vehicle’s true owner, DOR cannot be held liable for any damages that occurred because you were issued a bonded title. 

You, however, are legally obligated to compensate the vehicle’s actual owner and any other party financially harmed by your actions, such as a person to whom you sold a car you didn’t truly own. If the bond expires without any claims, your bonded title can be exchanged for a conventional title.

As the party requiring the bond, DOR is referred to in the surety bond agreement as the “obligee.” As the party required to purchase the bond and legally obligated to pay any valid claims, the person seeking a bonded title is known as the “principal.” The third party to the agreement is the bond’s guarantor, called the “surety.”

It’s up to the surety to determine the legitimacy of a claim and approve it for payment. Typically, the surety also will go ahead and pay it, even though that’s the principal’s legal responsibility. But the principal must then repay the surety. If repayment is not forthcoming, the surety can take legal action against the surety to obtain it.

How the cost of a Georgia title bond is determined depends on the bond amount. There are three different payment methods:

  • A flat cost of $125 or less for bonds with a coverage amount of $5,000 to $6,500
  • A small fixed percentage (1.5%) of bonds with a coverage amount higher than $5,000, up to $25,000
  • A premium based on underwriting for bonds with a coverage amount higher than $25,000

For bonds that are subject to underwriting, the surety will set a premium rate that reflects the risk that is inherent in paying claims on behalf of the principal and waiting to be reimbursed.

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