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  1. What is a Bonded Title?
  2. Who can apply for a Bonded Title?
  3. Bonded titles can be issued for what type of vehicle?
  4. How do I obtain a “lost title”?
  5. What if there is dispute over the ownership of the vehicle?
  6. What if there is a recorded lien on the title?
  7. Can I sell the vehicle on the bonded title?
  8. Does the vehicle have to be operable?
  9. How is the Bond Premium determined?
  10. Can I obtain a bonded title on an abandoned vehicle?
  11. Can I obtain a bonded title on a vehicle that was given to me?
  12. If I did not receive a title when I purchased the vehicle is a bill of sale necessary?
  13. If the vehicle is inoperable will I have to register the vehicle when I apply for title?
  14. What should I do to obtain your service?

1. What is a Bonded Title?

A bonded title is a process used in Texas to provide title to vehicles when the proper evidence of ownership is not available. The bonded title law was past by the Texas Legislature in the late 1980’s to provide an alternative to a Tax Collector Hearing to secure a Texas title for Texas residents. Many counties in the state no longer hold hearings.

2. Who can apply for a Bonded Title?
3. Bonded titles can be issued for what type of vehicle?
4. How do I obtain a “lost title”?

This question is asked frequently when someone has purchased a vehicle but did not receive a title. The owner shown on the title record must request a certified copy of a title. If a lien holder is shown the registered owner may secure a certified copy of the title by providing a release of lien from the lien holder.

5. What if there is dispute over the ownership of the vehicle?

When a bonded title is issued a “Bonded” notation is shown on the title record for 3 years. If during that time someone claims an interest in the vehicle they can take the new owner to court and if judgement is issued by that court the Bonding company pays the judgement and the new owner must reimburse the Bonding company the amount paid.

6. What if there is a recorded lien on the title?

If there is a lien holder shown on the Texas title or out of state title we must verify the lien has been released. Most of the time we are able to obtain a release for you if the lien has been paid.

7. Can I sell the vehicle on the bonded title?

Yes, the bonded title is a negotiable Texas title.

8. Does the vehicle have to be operable?

No, in cases of old vehicles it is best to obtain the bonded title before the vehicle is restored to save on the cost of the Bond. Application to obtain plates can be done later when restoration has been completed.

9. How is the Bond Premium determined?

The value of a late-model vehicle is determined either through the Presumptive Value, the N.A.D.A. book value or an appraisal. The value of a vehicle twenty-five or more years old is either $4,000 or the amount on the Bill of Sale, whichever is larger.

The bond amount is one and a half times the value of the vehicle. The bond premium is $15 per $1000 of the bond amount. A minimum charge for any bond is $100.

Example: My vehicle's value is $5000. My bond will be $7500 and my bond premium will be $112.50.

10. Can I obtain a bonded title on an abandoned vehicle?

No. Abandoned vehicles must be disposed of through law enforcement if they are operable. If not operable Form VTR71-2 must be completed by the property owner and a Certificate of Authority will be issued to dispose of the vehicle to a salvage yard. The vehicle cannot be put back into operation.

11. Can I obtain a bonded title on a vehicle that was given to me?

Yes, but if possible get a statement in writing from the person giving you the vehicle. If given to you by a close relative, you may execute an "Affidavit of Motor Vehicle Gift Transfer" form and only pay the ten dollar gift tax.

12. If I did not receive a title when I purchased the vehicle is a bill of sale necessary?

No. However, a bill of sale is helpful on larger Bonds and can often reduce the amount of sales tax due when you apply for a title. When there is no bill of sale you may be required to pay sales tax based on two thirds of the Presumptive Value, the NADA book value or the appraised value.

13. If the vehicle is inoperable will I have to register the vehicle when I apply for title?

No. We will supply you with a Form VTR131 that will allow you to secure a title without registration or proof of insurance.

14. What should I do to obtain your service?

You can download one of our Bonded Tile Questionnaires using the "Print Order Form" link on the left. Complete the form and mail or FAX (512-352-7154) it to us with a service fee of $150.00. We will also take your application using your credit card.



Lawrence Auto Title - P.O. Box 450 - Taylor, Texas 76574
Phone: 800-352-2788       FAX: 512-352-7154
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Admin@LawrenceAutoTitle.com

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