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Rebuilt Title means that the vehicle was seriously damaged. Buy only if you checked VIN history and know what exactly happened. Be cautious about airbag deployment in the history!

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Bonded Title: What it means, When You Need One and How to Get

A bonded title, also known as a "Certificate of Title Surety", is a document that proves a person's ownership of a motor vehicle. It is typically used in situations where the original title is missing, lost, damaged, or otherwise deemed invalid. The bonded title is named as such because it is issued with a surety bond. This bond is meant to protect future buyers or sellers of the vehicle if ownership disputes arise. With a bond title the assumes that any damages caused by a replacement title will the covered with surety bond. Accordingly, any person suffering losses from the title if it turns out illegal, can make a claim against the surety bond and the surety company with cover the losses. In addition, this takes the burden of collecting reimbursment from the 'guilty' title owner and relays it in the Surety company.

When One Needs a Bonded Title?

  1. If the original vehicle title is lost or misplaced: In such scenarios, a bonded title may be required as a form of protection against any potential disputes about the vehicle's ownership.
  2. When the vehicle is bought without a title: If a vehicle is purchased and the seller didn't provide a title, the buyer may need to obtain a bonded title to prove their ownership.
  3. If the vehicle title is improperly assigned: This could happen if the previous owner's details are incorrectly filled out. In this case, a bonded title can help correct the mistake and verify the new owner's rights to the vehicle.
  4. Inheritance without a will or title: If a vehicle is inherited and the deceased owner did not leave behind a will or vehicle title, a bonded title may be necessary to confirm the new owner's lawful possession of the vehicle.
  5. You received a vehicle as a gift and the title is not in the donor's name

What Vehicles Can I Obtain a Bonded Title For?

In order to be eligible for a bonded title the vehicle can’t be scrapped or have "Junk" or "parts only" status, stolen or currently the subject of a lawsuit.

How to Obtain a Bonded Title

  1. Obtain a Title Bond: If you are sure you need a bonded title, the next step is to get a title bond from a Surety Bond company. A title bond is a type of surety bond that provides a guarantee to the state that you are the rightful owner of the vehicle. The cost of a title bond varies, but it is usually a small percentage of the bond size varying from 1 to 3%, with is about 1.5 or 2.0 times the car's value.
  2. Submit Your Application: Once you have your title bond, you can submit your application for a bonded title to your state's department of motor vehicles (DMV). You will need to provide proof of ownership, such as a bill of sale or a signed-over title, as well as any other required documents.
  3. Pay the Required Fees: There will likely be fees associated with applying for a bonded title. The amount will vary by state.
  4. Receive Your Bonded Title: If your application is approved, the DMV will issue you a bonded title. This title acts just like a regular vehicle title, except that it is marked as "bonded". This means that if another person comes forward and can prove they are the rightful owner of the vehicle, they can make a claim on your title bond. While receving the bonded title you swer under penalty of law that you are the legal owner of the vehicle.
  5. Wait Out the Bond Period: Generally, the bond must remain in effect for a certain period (usually 3-5 years), during which anyone with a claim to the vehicle can file a claim with the surety company. It may be challenging to sell or trade in the vehicle over this period.
  6. Obtain a Clear Title: If no claims are made on your bond during the bond period, you can apply for a clear title.

Buying a vehicle with a bonded title can be risky. The bonded title is often seen as a red flag, indicating that there may be issues with the vehicle's ownership history. This could include disputes over ownership, undisclosed liens, or even fraud. Therefore, it's crucial to conduct a thorough investigation before purchasing such a vehicle, including a comprehensive title search and possibly even hiring a lawyer.

Welcome to rebuilt vehicle information portal. Please, choose the information you need.

I want to:

Rebuilt Title means that the vehicle was seriously damaged. Buy only if you checked VIN history and know what exactly happened. Be cautious about airbag deployment in the history!

Check VIN Now Start VIN Check

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