Surety Bonds for a Bonded Title can usually be easily obtained. These bonds can be purchased online in minutes. Depending on the required amount of the bond, a credit check may or may not be required. Even those with past credit challenges can usually qualify for these bonds. They are normally considered low risk bonds.
A surety bond for a bonded title cost between 1% - 2%. Most applicants will pay about 1% of the required bond amount for these lost title bonds. The bond premium is not returned, even if no claim occur.
The amount of the bond for a replacement title varies by state. It is common to have a bond amount that is more than the value of the property, such as 1.5 or 2.0 times the property’s value. For example, if a vehicle's value is $20,000, a state will usually require a certificate of title surety bond in the amount of $30,000 - $40,000.
The duration of a lost title bond depends on the state requirement. It is common for the bond to be required for more than a year. Some states such as North Carolina require a bond to be in place for three years when a replacement title is issued.
Bonded Titles are not inherently bad. Many people lose or misplace titles all the time. However, there is always some risk with a replacement title. The risk is that the selling party does not have legitimate ownership of the property. A bonded title should give comfort to the buyer by knowing that a strong third-party bond company is in place to compensate the buyer if they are damaged by purchasing the property. Our experience is that claims against bonded titles are pretty rare.
Some states allow those that have been affected by a faulty title to file a claim directly with the state. The state can then make a claim with the bond company on the claimant’s behalf.
In states where the claimant must file directly, you can obtain the name, address and bond number from the state agency. The claimant can then send all supporting information directly to the surety via registered mail. The surety bond company should acknowledge receipt of the claim and start investigating. These claims should typically be settled in 30 - 60 days from the receipt of the claim. If not, contact the state agency.
Suppose a principal obtains a bonded title on a vehicle and later sells that vehicle to a buyer. The buyer discovers that vehicle belonged to someone else, and that seller did not have proper ownership of the vehicle. Either or both the defrauded owner and the defrauded buyer of the vehicle could make a claim against the surety bond for damages. The surety would be forced to pay the damages up to the bond penalty. The surety could then seek reimbursement from the principal on the bond.
In most states, the time to obtain a bonded title is the same as getting a normal title. However, it may take more time to collect the information needed to apply for a bonded title. Check each state’s bonded title requirements before heading to your local Department of Motor Vehicles.
Bonded Titles protect the buyers of property when an original title is unavailable. Normally, these bonded titles require a surety bond to protect the buyer against damages caused by issuing a replacement title. Fortunately, these bonds are inexpensive and can be purchased online. Contact the experts at Axcess Surety today to get the bond you need fast. Customers can also learn more about surety bonds by visiting our complete guide.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
