How to Get a Bonded Title in Texas?

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Texas 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 Texas bonded title is your solution if you have purchased a vehicle but lack a title that would allow you to insure, register, or sell it to someone else. That is, it’s a solution if you reside in Texas (or are on active military duty in Texas), and have the vehicle in your possession. Additionally, the car must be intact, must not be an abandoned vehicle, stolen, or junked, and must not be encumbered by a lien.

Once you are granted a bonded title, you can do anything an original title would enable you to do. The only way to tell the difference between a bonded title and an original title is that the former is marked with the “BONDED” brand in large type. That lets everyone know the title is backed by a surety bond.

Who Needs Them?

Most often, a bonded title is needed because a private seller:

  • Did not give the buyer a title
  • Gave the buyer a title that is deficient in some way—improperly assigned, fraudulently altered, or damaged in a way that makes it illegible
  • Gave the buyer a title that was lost or stolen before the buyer could register the vehicle in his or her name

What Are the Steps in the Bonded Titling Process?

You will need to submit two, or possibly three, forms to apply for a bonded title:

  • Form VTR-130-SOF, Statement of Fact for Bonded Title, which must include a pencil tracing of the vehicle’s VIN plate
  • Form VTR-125, to document the vehicle’s current appraised value
  • Form VTR-68-A, Law Enforcement Vehicle Identification Number Inspection, completed by an auto theft investigator at a certified Safety Inspection Station (needed only if the vehicle formerly was registered in another state)

Submit these forms along with your completed application and any proof of your ownership to your local DMV office. If approved, you’ll need to purchase a Texas title bond with a three-year term. The final step is to submit your approved application, the approval letter, the bond certificate, proof of insurance, and other supporting documents to the county tax office. You’ll receive your Texas bonded title in the mail.

Why is a Title Bond Required?

In purchasing a title bond, you are guaranteeing the vehicle belongs to you. You also agree to compensate anyone who, during the bond’s three-year term, can prove their rightful ownership of the vehicle and can document damages resulting from having a bonded title. If no claims are received during the three years that the bond is in force, at the end of that period, you can exchange the bonded title for a standard one.

How Do They Work?

If someone submits a claim against your Texas title bond and can prove their ownership of the vehicle to the surety’s satisfaction, the surety (the bond’s guarantor) will pay it on your behalf. But you are legally obligated to repay that debt to the surety. If you don’t, the surety can sue you to recover the funds.

What Do They Cost?

Texas title bonds for more than $25,000 are subject to underwriting, though bonds for lesser amounts are typically sold for a fee based on the coverage amount. The underwriting is based largely on the applicant’s personal credit score, with a high credit score resulting in a low premium rate and a low score warranting a higher rate. 

The average premium rate for someone with decent credit is in the range of one to two percent.

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

A Texas bonded title is your solution if you have purchased a vehicle but lack a title that would allow you to insure, register, or sell it to someone else. That is, it’s a solution if you reside in Texas (or are on active military duty in Texas), and have the vehicle in your possession. Additionally, the car must be intact, must not be an abandoned vehicle, stolen, or junked, and must not be encumbered by a lien.

Once you are granted a bonded title, you can do anything an original title would enable you to do. The only way to tell the difference between a bonded title and an original title is that the former is marked with the “BONDED” brand in large type. That lets everyone know the title is backed by a surety bond.

Most often, a bonded title is needed because a private seller:

  • Did not give the buyer a title
  • Gave the buyer a title that is deficient in some way—improperly assigned, fraudulently altered, or damaged in a way that makes it illegible
  • Gave the buyer a title that was lost or stolen before the buyer could register the vehicle in his or her name

You will need to submit two, or possibly three, forms to apply for a bonded title:

  • Form VTR-130-SOF, Statement of Fact for Bonded Title, which must include a pencil tracing of the vehicle’s VIN plate
  • Form VTR-125, to document the vehicle’s current appraised value
  • Form VTR-68-A, Law Enforcement Vehicle Identification Number Inspection, completed by an auto theft investigator at a certified Safety Inspection Station (needed only if the vehicle formerly was registered in another state)

Submit these forms along with your completed application and any proof of your ownership to your local DMV office. If approved, you’ll need to purchase a Texas title bond with a three-year term. The final step is to submit your approved application, the approval letter, the bond certificate, proof of insurance, and other supporting documents to the county tax office. You’ll receive your Texas bonded title in the mail.

In purchasing a title bond, you are guaranteeing the vehicle belongs to you. You also agree to compensate anyone who, during the bond’s three-year term, can prove their rightful ownership of the vehicle and can document damages resulting from having a bonded title. If no claims are received during the three years that the bond is in force, at the end of that period, you can exchange the bonded title for a standard one.

If someone submits a claim against your Texas title bond and can prove their ownership of the vehicle to the surety’s satisfaction, the surety (the bond’s guarantor) will pay it on your behalf. But you are legally obligated to repay that debt to the surety. If you don’t, the surety can sue you to recover the funds.

Texas title bonds for more than $25,000 are subject to underwriting, though bonds for lesser amounts are typically sold for a fee based on the coverage amount. The underwriting is based largely on the applicant’s personal credit score, with a high credit score resulting in a low premium rate and a low score warranting a higher rate. 

The average premium rate for someone with decent credit is in the range of one to two percent.

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Request a quote online or call today to speak with one of our surety bond agents about getting you a good rate on the bonded title you need to do business in your state.