Texas Bonded Title Process

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Don’t sweat it if you don’t have a title for a vehicle you want to register. There’s a process to obtain a new title if you never got one when you bought a vehicle, were given a flawed or incorrect title, or received a perfectly good title but lost it before you had a chance to register the vehicle. Learn more about the Texas bonded title process below, and contact Single Source Insurance to get the bond you need today.

What Is a Bonded Title?

A bonded title allows you to register a vehicle even if there is a possibility that someone will later turn up and challenge your ownership of the vehicle. This article walks you through the process for obtaining a bonded title in Texas, step by step.

Who Needs a Bonded Title?

If you want to register a vehicle for which you don’t have a good title or to transfer ownership of the vehicle to someone else, you’ll need to get a bonded title. To qualify for a bonded title:

  • You must be a resident of Texas or be stationed in Texas on military duty
  • You must have possession of the vehicle
  • The vehicle cannot be abandoned, stolen, junked, or the subject of a pending lawsuit, and it must be a complete vehicle, with a motor and frame, though it need not be operational
  • There cannot be any liens against the vehicle

How Does It Work?

The state’s main concern is trying to establish your ownership of the vehicle, so the Texas bonded title process will involve filling out forms and obtaining the appropriate signatures.

  1. Complete Form VTR-130-SOF, “Statement of Fact for Bonded Title.” One of the items on the checklist provided on the form is a pencil tracing of the vehicle’s VIN plate. Another is the current value of the vehicle as appraised by a licensed motor vehicle dealer or insurance adjuster and recorded on Form VTR-125, or from a nationally recognized valuation guide such as the National Auto Dealers Association reference guide.

    Bring or mail the completed form to your local DMV office along with any evidence you have to help prove your ownership, such as a Bill of Sale, invoice, payment receipt, or cancelled check. Be prepared to pay the $15 administrative fee (by cash, check, or money order).

    Completing this application for a bonded title is rather straightforward if the vehicle was previously titled and/or registered in Texas, but if not, an additional step is necessary.

  2. Take the vehicle to a Texas certified Safety Inspection Station and request verification of the VIN on a Vehicle Inspection Report. Only for vehicles not previously titled and/or registered in Texas. You’ll also need to have a VIN inspection performed by an auto theft investigator in the local police or sheriff’s office, to be documented on a Form VTR-68-A, “Law Enforcement Vehicle Identification Number Inspection.” This form also includes questions you must answer about the vehicle, how you got it and why you don’t have a valid title for it.
  3. Upon approval of all forms and documents submitted, the DMV will send you a letter telling you the required amount of the title bond you will need to purchase. The amount will be 1.5x the appraised value of the vehicle, unless the vehicle is 25 or more years old, in which case the value will be the actual amount from the bill of sale or $4,000, whichever is higher.
  4. The approval letter is good for one year. Within that year, you must purchase a three-year Texas title bond.
  5. Within 30 days of purchasing the surety bond, take the following to your county’s tax office:
  • the approval letter from the DMV
  • all documents you submitted with your bonded title application
  • the surety bond certificate
  • proof that the vehicle is insured
  • a completed “Application for Texas Certificate of Title”
  • If the vehicle is an import, you’ll also need to provide a Customs Declaration.

You will receive a Texas bonded title, which protects the DMV and anyone with a legitimate ownership interest in the vehicle from financial loss.

The title bond remains in place for three years. If nobody contests the vehicle’s ownership by filing a claim against the bond within that time, at the end of the three years, the DMV will issue an unbonded title.

What Does It Cost?

You will pay a small percentage of the bond amount as the premium for a vehicle title bond. At Single Source Insurance, all Texas bonded title premiums will have a $100 minimum. For bonds with a penalty over $7,000, the premium is 1.5%. For bonds with a premium over $25,000, we will run a credit check.

Get Bonded Today

Contact Single Source Insurance today for all of your bonding needs. You can count on us to get you the best possible deal on a Texas title bond.

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