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?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?After the value of the vehicle has been determined, either through the N.A.D.A. book or with an appraisal, call Greater Texas Insurance Managers & Agency, Inc. Their numbers are (877) 473-2806 or (512) 250-5055. You may also click HERE for their web site. Or you may contact a Bonding Company of your choice.
10. Can I obtain a bonded title on an abandoned vehicle?No. Abandoned vehicles must 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. You then pay only a 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 the NADA book value or the highest 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 Form" link on the left. Complete the form and mail or FAX (512-352-7154) it to us with a service fee of $100.00. We will also take your application using your credit card.
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