If you intend to sell a vehicle in the state of Texas without a title, you need to obtain what’s known as a title bond or lost title bond. Without one, the sale can’t proceed until you provide proof of having one of these surety bonds.
Therefore, it’s important to understand how the Texas bonded title process works and what it means for you. The experts at Viking Bond Service are here to make the process easy. Simply follow the six steps below detailing how to get a bonded title in Texas.
Step 1: Understand the Title Bond
Before entering into a title bond agreement, you should understand exactly how these agreements work. There are three parties involved: the principal (the title applicant), the obligee (the DMV), and the surety (the bonding agency).
A bonded title in Texas allows the DMV to confirm who is the valid owner of a vehicle. If you get a bonded title before selling the vehicle and later the original title reappears with another owner, it could call into question whether you were the rightful owner and seller of the vehicle.
In that case, the obligee may file a claim against the bond seeking damages equal to the value of the vehicle. Provided that the claim holds up under an investigation into who actually owns the vehicle, the surety will pay out damages to the obligee immediately.
Afterward, the bond titleholder must repay the settlement costs (plus interest and fees) to the surety agency. The bondholder always has the financial obligation for claims. Texas and all other states require title bonds to discourage people from seeking fraudulent titles by holding them accountable for any and all damages that result from their illegal actions.
Step 2: Contact the DMV
The Texas Department of Motor Vehicles (DMV) regulates and oversees all vehicle sales in the Lonestar State. If your vehicle does not have a title and you plan to sell or transfer ownership to someone else, you will need to ask the DMV to issue a new title first.
If the DMV determines that you are the rightful owner of the vehicle and issues a replacement title, you will not need to obtain a bonded title in Texas. However, if the DMV cannot definitively establish ownership, you may be required to get a bonded title. If that’s the case, you will need to show proof of having the bond before the DMV issues the title.
Step 3: Complete the Documents
The next step to get a bonded title in Texas is to submit the documents for your application. That process involves gathering paperwork, paying a $15 filing fee, and providing proof of vehicle ownership.
- A copy of a photo ID.
- A document known as a Statement of Fact for Bonded Title.
- Proof that you are the rightful owner of the vehicle.
Proof of rightful ownership can include:
- A bill of sale for the vehicle.
- An invoice for the vehicle cost.
- A copy of a check used to purchase the vehicle.
Lastly, if the vehicle was registered in another state, you will need to also take it to a registered Texas Vehicle Inspection Station for them to confirm the Vehicle Identification Number (VIN).
Step 4: Receive Approval
The Texas DMV will review the application documents from the previous step. How long this takes can vary. The DMV also has the right to deny your application for a bonded title. FOr example, vehicles with liens on them often get rejected for bonded titles because of the high likelihood that ownership disputes will result in bond claims.
Step 5: Procure a Title Bond in Texas
Once approved by the Texas DMV for a bonded title, the next step is to acquire the required bond.
To procure a title bond, you’ll need to do the following:
- Find a surety agency that issues title bonds in Texas.
- Apply for the bond. (In most cases, the application process involves a credit check and a standard bond application. )
- Wait for underwriters at the surety agency to evaluate the application materials and quote a bond price.
- Pay for the title bond.
When it comes to how much a Texas title bond costs, the DMV will determine how large the bond must be in terms of dollars. This amount represents the maximum total the surety agrees to pay in settlements and typically reflects the value of the vehicle.
To answer the question how much is a bonded title in Texas, the cost is a small percentage of the bond’s total value. Exact amounts depend on the applicant’s credit, financial record, and bonding history (where applicable).
If you have bad credit, you can expect to pay more. However, with the right surety agency, you won’t necessarily be denied a bond. To keep the application process quick, easy, affordable, and accessible to all, work with a leading surety agency like Viking Bond Service.
Step 6: Apply for a Bonded Title
Once you have paid for the Texas title bond, you will receive a document proving you’ve met the DMV’s bond requirement. You will need to supply that document along with several others to the county tax office, which handles title-related issues. By this step in the process, you likely have most of the necessary documents on hand.
Applications for bonded titles must be received within 30 days of you obtaining the title bond. Once the DMV issues a bonded title, it remains in effect for three years, after which the DMV issues a traditional title for the same vehicle.
And with that, you now know how to get a bonded title in Texas.
Viking Bond Service – Serving All of Texas
The steps to get a bonded title in Texas can seem like a hassle, especially if you’re eager to get rid of a vehicle. Count on Viking Bond Service to make things simple and seamless. You can complete our online application at any time and expect to receive a bond quote in as little as 24 hours. You can also contact us or call 1-888-278-7389 to have all your questions answered.