How to Get a Bonded Title in Maryland

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Maryland 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?

A bonded title is a way for Maryland residents who don’t have a standard title and can’t provide definitive proof of ownership to register a vehicle in their own name or transfer ownership to someone else. A bonded title is identical in appearance to a standard title except for bearing the BONDED brand. 

Who Needs Them?

Anyone who does not have a valid title for a vehicle must get a bonded title. The most common reasons for not having a valid title are that:

  • The seller never gave you one.
  • The seller gave you a title that is invalid (e.g., improperly assigned, damaged, illegible, etc.).
  • The seller gave you a title that was lost or stolen before you could register the vehicle in your name.

What Are the Steps in the Bonded Titling Process?

Bonded titles are issued by the Maryland Motor Vehicle Administration. Consult your local MVA office to find out whether your vehicle is eligible for a bonded title. If it is, you will need to:

  • Have the vehicle inspected at a licensed Maryland inspection station
  • Purchase a three-year Maryland title bond in an amount equal to one and a half times the vehicle’s current market value
  • Complete the bonded title application and submit it to the local MVA office along with the bond and inspection report

Why is a Title Bond Required?

The title bond is your guarantee that you are the vehicle’s rightful owner. If within the three years that the bond is in force that proves not to be true, you are legally obligated to pay damages claimed by the rightful owner or lienholder. MVA (the bond’s “obligee”) and the bond’s guarantor (the “surety”) are indemnified against liability for any financial harm resulting from you having been issued a bonded title. The injured party could be the previous titled owner, a lienholder, or someone you sold the vehicle to after receiving the bonded title.

If the bond expires after three years with no claims filed against it, you can exchange the bonded title for a standard title.

How Do They Work?

A Maryland title bond establishes a legally binding contract among three parties: the aforementioned obligee, the surety, and you (the bond’s “principal”). Although as the principal you are, by law, solely responsible for paying valid claims, the surety has guaranteed their payment. Consequently, the surety will pay a claim initially, but you must then repay the surety. If you don’t, the surety can sue you to recover the claim amount.

What Do They Cost?

Maryland title bonds typically are sold for a small fee based on the bond amount. Bonds in the amount of $25,000 or more are subject to underwriting based largely on the principal’s personal credit score. The surety will establish a premium rate that reflects the underwriters’ assessment of the risk the surety will take on in agreeing to pay claims on behalf of the principal. With a high credit score, the risk that the principal won’t reimburse the surety is assumed to be low, which results in a low premium rate. Lesser credit warrants a higher premium rate. The average is in the range of one to three percent.

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 Maryland 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 are the solution for people who lack a standard title for a vehicle they have in their possession. The only difference between a bonded title and a standard title is that the former bears the “BONDED” brand. You can do anything with a bonded title that a standard title would allow you to do. 

Anyone who does not have a valid title for a vehicle must get a bonded title. The most common reasons for not having a valid title are that:

  • The seller never gave you one.
  • The seller gave you a title that is invalid (e.g., improperly assigned, damaged, illegible, etc.).
  • The seller gave you a title that was lost or stolen before you could register the vehicle in your name.

Bonded titles are issued by the Maryland Motor Vehicle Administration. Consult your local MVA office to find out whether your vehicle is eligible for a bonded title. If it is, you will need to:

  • Have the vehicle inspected at a licensed Maryland inspection station
  • Purchase a three-year Maryland title bond in an amount equal to one and a half times the vehicle’s current market value
  • Complete the bonded title application and submit it to the local MVA office along with the bond and inspection report

The title bond is your guarantee that you are the vehicle’s rightful owner. If within the three years that the bond is in force that proves not to be true, you are legally obligated to pay damages claimed by the rightful owner or lienholder. MVA (the bond’s “obligee”) and the bond’s guarantor (the “surety”) are indemnified against liability for any financial harm resulting from you having been issued a bonded title. The injured party could be the previous titled owner, a lienholder, or someone you sold the vehicle to after receiving the bonded title.

If the bond expires after three years with no claims filed against it, you can exchange the bonded title for a standard title.

A Maryland title bond establishes a legally binding contract among three parties: the aforementioned obligee, the surety, and you (the bond’s “principal”). Although as the principal you are, by law, solely responsible for paying valid claims, the surety has guaranteed their payment. Consequently, the surety will pay a claim initially, but you must then repay the surety. If you don’t, the surety can sue you to recover the claim amount.

Maryland title bonds typically are sold for a small fee based on the bond amount. Bonds in the amount of $25,000 or more are subject to underwriting based largely on the principal’s personal credit score. The surety will establish a premium rate that reflects the underwriters’ assessment of the risk the surety will take on in agreeing to pay claims on behalf of the principal. With a high credit score, the risk that the principal won’t reimburse the surety is assumed to be low, which results in a low premium rate. Lesser credit warrants a higher premium rate. The average is in the range of one to three percent.

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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