A Texas Bonded Title is a motor vehicle title protected by a surety bond against unlawful ownership or lien interest in the vehicle. The state has required that the owner purchase a bond in order to issue a title on the vehicle.
Section 501.051 of the Texas Transportation Code gives reasons that the state of Texas may refuse to issue a vehicle title, suspend a vehicle title or revoke a vehicle title. These include the following:
If the state of Texas refuses to issue a title, a party will have two options. They can apply for a hearing with the county assessor under Section 501.052 or they may obtain a Texas Bonded Title Surety Bond.
In order to use a bond to obtain a bonded title, these three options must be met:
A Texas Certificate of Title Surety Bond guarantees that the purchaser of the title (the principal) will pay any damages and expenses to previous owners and interest holders of the vehicle, caused by the unlawful issuance of the title. In other words, it allows the state of Texas to issue a vehicle title for a vehicle with a title in question by providing financial recourse to any party that may be damaged by the issuing of a title. The bond reads:
Texas requires a certificate of title bond for a vehicle to be in the amount of 1.5 times the vehicle’s value, as determined by the Department of Motor Vehicles (The Department). The value will be determined using The Standard Presumptive Value (SPV) from the Texas DMV website as the primary source. There is a calculator on the website. An applicant will need a Vehicle Identification Number and Odometer Reading.
If an SPV is not available, the National Auto Dealers Association (NADA) reference guide will be used.
If neither value can be used, The Department may require an appraisal by a licensed motor vehicle dealer or insurance adjuster to determine the value. Vehicles of $4,000 and less in value or vehicles 25 years and older will be valued at $4,000.
The amount of the bond is the maximum amount the surety bond company must pay out on the bond, regardless of the number of claimants or the dollar amount of claims paid.
Texas Title Bonds for Vehicles can be purchased for 1% or less of the bond amount. For example, a title bond of $40,000 can be purchased online for $360. Even better pricing may be available for those willing to provide additional information.
Texas Certificate of Title Surety Bonds are easy to obtain. They can be purchased online in minutes. Depending on the amount of the bond, many applicants can obtain them without a credit check. For larger bond amounts, a personal credit check is all that is required.
Applicants should have the year, make, model, and body style of the vehicle before applying. The applicant will also need the letter from the Department showing the necessary bond amount.
Credit challenges can happen to anyone. Texas Lost Title Bonds are easy to obtain, even when the applicant has credit challenges. Applicants should be prepared to provide additional information, and possibly pay a higher cost. Axcess Surety works with major bond companies for applicants in all situations and can help any applicant find the best terms on their title bond.
A Texas certificate of title bond must be for a period of three years. This allows time for those affected to make claims against the title if necessary.
Some Texas vehicles may not use a bond to obtain a bonded title. These include salvage vehicles and vehicles that cannot be repaired under Sec. 501.091. Although it does not have to be operable, the vehicle must be complete including a frame, motor and body OR frame and motor if it is a motorcycle.
In order to apply for a Bonded Title in Texas, an applicant will need to take the following steps:
All of these items can be submitted in person at the closest Texas DMV or by mailing them to the closest Texas DMV Regional Service Center.
If the TxDMV finds that the vehicle is eligible for a bonded title, they will provide the applicant with Form VTR-130-ND. This form will show the required surety bond amount, which is 1.5X the vehicle’s value. Once the applicant has this form, they can apply for a surety bond online or by contacting Axcess Surety.
It is important to note that the applicant will have one year from the date on approved Form VTR-130-ND to obtain a bond. After that, a new form will be required.
Finally, you will need to take your Certificate of Title Surety Bond, the completed Form VTR-130-ND and a completed application for title (Form 130-U) to your local tax office.
Texas Bonded Title helps protect motor vehicle owners from damages caused by the state issuing duplicate titles. An important part of the process is obtaining a Certificate of Title Bond. Fortunately, these bonds are easy to obtain online. Contact the bond experts at Axcess Surety today. Applicants can also learn more about surety bonds by checking out our online 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.
