Instantly purchase or get a quote on a North Carolina – Motor Vehicle Certificate of Title Bond (Indemnity Bond) Now
North Carolina requires an indemnity bond before issuing a replacement vehicle title in some cases. Learn more about these NC Lost Title Bonds and how to easily purchase one online.
North Carolina Lost Title Bonds can be purchased online instantly in many cases. For many amounts, a credit check is not even required. Simply input the applicant’s information and the vehicle’s make, model, year and Vehicle Identification Number (VIN).
Newer vehicles are becoming increasingly expensive so some larger amounts may require a personal credit check of the applicant.
Generally, yes. Axcess Surety works with many surety bond companies so that we can help people and businesses in almost all situations. Our surety experts can get a NC Lost Title Bond for most applicants, even if they have had past credit challenges. Those in these situations should be prepared to submit additional information and possibly pay a higher rate for their bond.
A North Carolina Lost Title Bond is a type of surety bond that protects the previous and future owners of a vehicle from defects, rights, and ownership interests caused by issuing a new title for the vehicle. The bond guarantees that the purchaser (principal) will indemnify the previous or future owners for damages caused by issuing a new title.
The amount of a NC Lost Title Bond will depend on the Division. The bond must be written for an amount equal to one and a half (1.5x) times the vehicle’s value as determined by the Division.
The Division will determine the value by using a Current Value Schedule. This schedule can be obtained from any NC DMV or by contacting the NCDMV Customer Contact Center (919-715-7000). For vehicles not listed in the Value Schedule or for mobile homes, two appraisals from North Carolina dealers will be required.
Most applicants can obtain a North Carolina Lost Title Bond for 1% of the bond amount. For example, a $50,000 NC Lost Title Bond would cost $500. For very large bonds, personal credit could play a factor and the cost could be slightly more or less than 1%. You can read more about surety bond costs and how they are determined here.
The applicant is the principal on the bond. The principal pays a bond premium and provides indemnity to a third-party called a Surety. The surety then provides a financial guarantee to the State of North Carolina (the Obligee) that it will pay claims caused by the principal’s act of obtaining a new vehicle title, when a new title should not have been issued. Anyone harmed by the principal’s actions can file a claim with the state on the bond.
The bond is an indemnity bond. If the surety pays a valid claim on behalf of the principal, they will still seek to be reimbursed by the principal for any amounts paid out.
Individuals and businesses in North Carolina that are trying to obtain a new title for a vehicle because the old title is either lost or unlawfully detained need a Bonded Title. This could be for a variety of reasons. Vehicle Titles are frequently misplaced or lost. It could also be due to a former owner refusing to release the vehicle title to a new owner such as in an auction or repossession.
The determination for whether a Lost Title Bond is needed is made at the discretion of the division. The applicant can first try to file an application with affidavits to obtain a new vehicle title without a bond. However, if they are unable to convince the Division, a Lost Title Bond will be required.
North Carolina General Statutes Chapter 20 Section 76 reads,
“(a) Whenever the applicant for the registration of a vehicle or a new certificate of title thereto is unable to present a certificate of title thereto by reason of the same being lost or unlawfully detained by one in possession, or the same is otherwise not available, the Division is hereby authorized to receive such application and to examine into the circumstances of the case, and may require the filing of affidavits or other information; and when the Division is satisfied that the applicant is entitled thereto and that G.S. 20-72 has been complied with, it is hereby authorized to register such vehicle and issue a new registration card, registration plate or plates and certificates of title to the person entitled thereto, upon payment of proper fees.
(b) Whenever the applicant for a new certificate of title is unable to satisfy the Division that he is entitled thereto as provided in subsection (a) of this section, the applicant may nevertheless obtain issuance of a new certificate of title by filing a bond with the Division as a condition to the issuance thereof. The bond shall be in the form prescribed by the Division and shall be executed by the applicant. It shall be accompanied by the deposit of cash with the Division, be executed as surety by a person, firm or corporation authorized to conduct a surety business in this State or be in the nature of a real estate bond as described in G.S. 20-279.24(a). The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the Division and conditioned to indemnify any prior owner or lienholder, any subsequent purchaser of the vehicle or person acquiring any security interest therein, and their respective successors in interest, against any expense, loss or damage, reason of the issuance of the certificate of title to the vehicle or on account of any defect in or undisclosed security interest in the right, title and interest of the applicant in and to the vehicle. Any person damaged by issuance of the certificate of title shall have a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of three years or prior thereto if the vehicle is no longer registered in this State and the currently valid certificate of title is surrendered to the Division, unless the Division has been notified of the pendency of an action to recover on the bond.
(c) Whenever an applicant for the registration of a moped is unable to present a manufacturer’s certificate of origin for the moped, the applicant must submit an affidavit stating why the applicant does not have the manufacturer’s certificate of origin and attesting that the applicant is entitled to registration. Upon receipt of the application and accompanying affidavit, the Division shall issue the applicant a registration card and plate. The Division may not require the applicant to post a bond as required under subsection (b) of this section. A person damaged by issuance of the registration card does not have a right of action against the Division.
A NC Title Bond must remain in effect until it is surrendered by the Division of Motor Vehicles. The bond shall remain in place for at least three years.
Before heading to the North Carolina DMV, an applicant for a NC Bonded Title should complete the following:
There are a number of situations when North Carolina will not accept a bond to issue a new title. These include:
NC Bonded Titles are common. Fortunately, these lost title bonds are easy to obtain and can be purchased online. Many applicants can simply get them before heading to the DMV. The surety bond experts at Axcess are standing by to help with all your North Carolina Surety Bond needs. Contact us anytime.
Obtain a free copy of a North Carolina Lost Title Bond form by clicking on the image.
There is nothing wrong with a bonded title in North Carolina. It could simply mean that the seller has lost the title to the vehicle. Be aware that there is some risk that the owner does not have a valid title to the vehicle. However, with a lost title bond in place for 1.5x the vehicle amount, the buyer does have protection if something goes wrong.
When it comes to a lost vehicle title, yes, a NC Lost Title Bond is the same thing as an indemnity bond. Some people also incorrectly refer to these bonds as an “endemnity bond”.
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.
