What Is a Bonded Title in Texas

Michelle Wilson - May 31, 2023

Have you found yourself unable to prove vehicle ownership? Many have agreed that it is a frustrating situation, especially when you’ve invested time and money into your ride. Fortunately, in Texas, a bonded title is a solution for those who have lost their titles or don’t have complete information. With this process, vehicle owners can get a new title and prove vehicle ownership.

Online data shows authorities issued over 15,000 bonded titles in Texas. With such a significant number of vehicle owners with these titles, it is worth asking, “How do I get the title?”

Getting a Bonded Title in Texas

In Texas, losing your vehicle title can be a hassle, especially if you need to sell or transfer vehicle ownership. Fortunately, the state has specific criteria that you must meet to apply for a replacement title. Firstly, your vehicle should have its most recent title in Texas, or you should be a Texas resident or stationed in the state as military personnel. These requirements ensure that the state has proper jurisdiction over the vehicle and that the owner can prove their identity and residence.

When applying for a title, the vehicle must be in your possession, and all its major components must be present. It’s worth noting that the vehicle does not need to be running when you complete your title application. However, the vehicle must not be stolen, junked, entangled in a lawsuit, or abandoned. It’s also important to confirm that the vehicle has no unresolved issues, such as liens or unpaid taxes, as these can cause complications during the application process. Ensuring you meet these criteria ahead of time will help to guarantee that you get a replacement title for your vehicle quickly.

Obtaining a Bonded Title

A bonded title can be a way out in many situations. However, bear in mind that certain criteria are non-negotiable, such as having all major components present and not being in the middle of any legal issues. If you still fit the description, keep reading to learn the steps to apply.

Determining Eligibility

In the State of Texas, it’s crucial to determine if you meet the eligibility criteria before obtaining a bonded title. According to public data, approximately 25% of bonded title applications in Texas are due to lost titles or insufficient documentation to prove vehicle ownership. If you want to apply, you must fulfill specific requirements.

Mailing The Necessary Documents

If you meet the outlined eligibility criteria mentioned earlier and are applying for a vehicle title in Texas. In that case, you can mail related documents to your closest Department of Motor Vehicles (DMV) branch. Along with the documents (which you will find in the list below), you must send an administrative fee of $15 in the mailing. The documents include:

• A copy of your photo identification: Include a legible copy of your valid photo ID, such as a driver’s license or passport. These documents act as proof of your identity and are necessary to help you proceed with your application.
• A statement of physical inspection: This statement confirms that a trustworthy party has conducted a physical inspection of the vehicle to ensure its condition and authenticity. A designated entity, such as a law enforcement officer or certified safety inspection station, typically performs the inspection.
• Supporting evidence for your title claim: Include any supporting documents that can strengthen your claim to the vehicle’s title, such as a bill of sale or any other relevant ownership documentation. These documents help establish the legitimacy of your ownership.
• A statement of fact for title bond: If you are applying for a bonded title, you need to provide a statement of fact for the title bond. This statement outlines the details of the surety bond obtained to secure the title.

Additionally, authorities will ask to verify the Vehicle Identification Number (VIN) for individuals with vehicles that are not originally from Texas. A certified safety inspection station in Texas does this verification process. The report generated by the certified safety inspection station, confirming the VIN verification, should also be included in the title application documents.

Obtaining a Surety Bond

To proceed with a bonded title, you must obtain a surety bond, or in other words, a type of insurance that protects the DMV and any potential future owners of the vehicle in case someone else claims ownership of the vehicle in the future. The bond amount is typically twice the appraised value of the vehicle. You will need to contact a licensed surety company to obtain the bond. The surety company will review your information as a background check to understand your situation, review the necessary documentation, and determine the bond premium based on various factors, such as the vehicle’s value and creditworthiness.

Submitting the Bonded Title Application

Once you obtain the surety bond, you can submit the bonded title application, which involves accurately completing the required application form and providing all the necessary supporting documents, including proof of ownership and the surety bond. It’s essential to carefully review the application and ensure all information is correct and complete to avoid delays or potential application rejection.

When submitting the bonded title application, you have two options. Firstly, you can personally deliver the application and accompanying documents to a local Texas DMV office. Alternatively, you can mail the application package per the specific instructions outlined by the DMV. Choose the submission method that is most convenient for you while ensuring that you follow the guidelines provided by the DMV accurately.

Completing the Waiting Period

After submitting the bonded title application, there is typically a waiting period before the title is issued. According to public data, the average waiting period for a bonded title in Texas ranges from four to six weeks. This duration allows the Texas DMV sufficient time to thoroughly review the application, verify the provided information, and process the bonded title accordingly. During the waiting period, remember that certain limitations may apply. For instance, you may not have the full privileges of a regular title holder, such as the ability to sell or transfer the vehicle.

Although difficult, try to remain patient during the waiting period as the DMV carries out the necessary procedures to finalize the bonded title. Once the waiting period has elapsed and the bonded title is approved, you will receive the new title indicating the bonding of your vehicle. At this point, you will have the appropriate documentation to validate your vehicle ownership and enjoy the full privileges associated with the bonded title.

The Bottom Line

As you follow these steps, try to approach the process with careful attention to detail, ensuring that you meet the criteria and are working alongside guidelines provided by the DMV. In situations where there are unusual circumstances at play, seeking legal advice or consulting the DMV can provide valuable guidance tailored to your unique situation.

While the process may require patience, obtaining a bonded title allows you to establish legal ownership of your vehicle and protect yourself from potential future ownership disputes. In doing so, pride yourself in completing an important step toward securing the rights and privileges associated with vehicle ownership in Texas.