A vehicle title is a crucial legal document. It’s what proves you own your car, truck, or motorcycle. You need it to register your vehicle, sell it, or transfer ownership to someone else.
But what happens if you don’t have a title? Maybe you lost it, or maybe the person you bought the vehicle from never gave it to you. In Texas, you might be able to get a bonded title.
A Texas bonded title acts as a substitute when you can’t get a regular title. It proves you own the vehicle, even without the original paperwork. This article will walk you through the steps of how to get a bonded title in Texas, covering everything from eligibility requirements to the documents you’ll need and the associated costs.
What is a Texas Bonded Title?
A Texas bonded title is a certificate of title that’s backed by a surety bond. You can use it when you don’t have complete or valid proof that you own a vehicle.
The surety bond protects the Texas DMV and any past or future vehicle owners from fraudulent claims. It’s basically a financial guarantee.
Here are some terms you should know:
- Principal: That’s you, the person applying for the bonded title.
- Obligee: That’s the Texas Department of Motor Vehicles (DMV).
- Surety: That’s the bonding company that provides the bond.
Why You Might Need a Bonded Title in Texas
You might be wondering why someone would need a bonded title in the first place. Here are a few common scenarios:
- Lost or stolen title: The original title is gone—lost, stolen, or destroyed—and you can’t find it anywhere.
- Incomplete or missing information: The title has missing or incorrect information, or there are discrepancies in the vehicle’s history.
- Purchase without a title: You bought a car, truck, or motorcycle without a title, and you can’t reach the previous owner to get one.
- Inherited vehicles: You inherited a vehicle but don’t have the right title documentation, making it hard to transfer ownership.
These situations can be frustrating, but thankfully, Texas provides a way to get a legal title through the bonded title process.
Who can get a bonded title in Texas?
To get a bonded title in Texas, you have to meet a few requirements.
- Residency: You must live in Texas, or be a member of the military stationed here.
- Vehicle Status: The vehicle cannot be stolen or abandoned. It must also be physically located in Texas.
- Other Restrictions: Your vehicle can’t be considered junked or a total loss. Also, there can’t be any outstanding liens on the vehicle.
If you meet these requirements, you can probably get a bonded title.
How to Get a Texas Bonded Title: The Step-by-Step Process
Getting a bonded title in Texas involves several steps, from gathering documents to securing a surety bond. Here’s a breakdown of the process:
Step 1: Gather Necessary Documents and Information
Before you head to the county tax office, make sure you have all the required paperwork. This includes:
- Application for Texas Certificate of Title (Form 130-U).
- Vehicle Inspection Report (Form VI-30).
- Proof of Identification (Driver’s License, ID card, etc.).
- Any evidence you have to support your ownership claim (Bill of Sale, receipts, etc.).
- A Statement of Fact for Bonded Title.
- Lien releases (if there were any previous liens on the vehicle).
Step 2: Vehicle Inspection (If Applicable)
If you brought the vehicle in from out of state, you’ll need to have it inspected by local law enforcement to verify that the Vehicle Identification Number (VIN) matches their records.
Step 3: Vehicle Appraisal
You’ll need to determine the vehicle’s value. Texas relies on the Standard Presumptive Value (SPV) to determine the vehicle’s worth. If the SPV isn’t available, the county tax assessor-collector may use the NADA (National Auto Dealers Association) reference guide. In some cases, they may require an appraisal from an insurance adjuster.
Step 4: Apply to the County Tax Assessor-Collector’s Office
Once you’ve gathered all your documents, head to your local County Tax Assessor-Collector’s Office, submit your application, and pay the administration fee of $15. Then, you wait for them to review your application and determine the required bond amount.
Step 5: Obtain the Surety Bond
The bond amount is calculated as 1.5 times the appraised value of the vehicle. You’ll need to contact a licensed surety bond provider in Texas and pay the bond premium, which is typically 1% to 5% of the total bond amount.
How much does a Texas bonded title cost?
The surety bond amount you need is one and a half times the vehicle’s appraised value. For example, a car worth $10,000 would require a $15,000 bond.
Luckily, you don’t have to pay the full bond amount. The premium, or cost, of the bond is usually only 1% to 5% of that total. So, for a $15,000 bond, you might pay anywhere from $150 to $750.
Keep in mind that your credit score and the surety company’s risk assessment will affect your premium cost.
Once you get a bonded title, it’s valid for three years. If no one makes a claim against the bond during that time, you’ll get a standard title.
Special Cases: Bonded Titles for Boats
Just like with cars and trucks, you might need a bonded title for your boat if the original title is lost, stolen, or damaged, or if you bought a boat without a title.
In Texas, the Texas Parks and Wildlife Department (TPWD) handles the application process and verifies whether you’re eligible for a bonded title. You’ll apply through TPWD, not the Texas DMV.
The way the bond is calculated is also slightly different for boats. The bond amount is 1.5 times the appraised value of the boat. However, there’s a minimum bond amount of $4,000 for boats older than 25 years that are valued at less than $4,000.
Getting a bonded title for a boat can come with its own set of challenges, such as verifying the boat’s ownership history and resolving any outstanding liens on the vessel.
Common Problems and How to Avoid Them
Applying for a bonded title can be tricky. Here are some common issues and how to avoid them:
- Incomplete Paperwork: Make sure you fill out everything completely and accurately. Double-check for mistakes before you send it in.
- Wrong Appraisal Value: Use a reliable appraisal like SPV or NADA. If you’re not sure, get a professional appraisal.
- Existing Liens: You have to take care of any liens before you apply. Get lien releases from whoever holds the lien.
- Ownership Arguments: Sort out any ownership disagreements before you try to get a bonded title. Keep good records of trying to contact the previous owner.
To Conclude
If you’ve lost your car title, or if you bought a vehicle without one, don’t despair. A bonded title in Texas is a legal way to prove you own the vehicle.
Getting a bonded title involves a few key steps: gathering all the necessary paperwork, having the vehicle inspected, getting an appraisal, securing a surety bond, and submitting your application to the Texas Department of Motor Vehicles (DMV).
While it may sound complicated, you don’t have to go it alone. A surety bond provider can guide you through the bond application process, and the Texas DMV and Texas Parks and Wildlife Department (TPWD) are available to answer your questions and help you through the process. With a little patience and persistence, you can get a bonded title and hit the road with confidence.